CARMEL, Ind., March 16, 2011 /PRNewswire/ -- After reviewing a draft addendum study released by Charles River Associates (CRA), MISO agrees with the study's assessment that significant benefits are available to Entergy and its customers by participating in a comprehensive energy market. The CRA study, filed March 11 with the Arkansas Public Service Commission, analyzed options facing Entergy as the company evaluates next steps as its independent coordinator of transmission agreement expiration nears. Under any of the scenarios studied, the report definitively shows that Entergy customers would benefit by joining an established market.
"The CRA study validates the fact that Entergy and its customers would see clear and measurable benefits that a competitive, open wholesale energy market provides," said Wayne Schug, executive director of stakeholder engagement and strategic planning for MISO. "Our members and their customers receive these benefits daily - enjoying upwards of $1.2 billion in annual customer benefits."
The CRA study focuses on only one of several areas of benefit, namely trade benefits associated with reduced energy production costs. MISO customers also benefit in several other areas that are not captured in the scope of the CRA study. MISO annually works with its stakeholders to quantify the benefits that customers in its region receive in the annual MISO Value Proposition. The calculations are based on actual results of the daily market operations in the MISO footprint. All of the calculations and assumptions are available at www.midwestiso.org.
Joining an established market such as MISO reduces risk and maximizes savings for Entergy and its customers. "Our members have already invested $330 million to build, implement and perfect a suite of market services of which Entergy can participate," said Schug. "As a result, an established energy market provides much more certainty to Entergy and its customers."
MISO ensures reliable operation of and equal access to high-voltage power lines in 13 U.S. states and the Canadian province of Manitoba. MISO manages one of the world's largest energy markets, clearing nearly $23 billion in energy transactions annually. MISO was approved as the nation's first regional transmission organization in 2001. The non-profit 501(C)(4) organization is governed by an independent Board of Directors and is headquartered in Carmel, Ind., with operations centers in Carmel and St. Paul, Minn. Membership is voluntary.