CARMEL, Ind., April 12, 2011 /PRNewswire/ -- MISO's application and use of operations research to implement energy markets that deliver least-cost wholesale energy in the Midwest earned the regional transmission organization the prestigious 2011 INFORMS Franz Edelman award last night. The award from INFORMS, an internationally acclaimed scientific and academic society, recognizes extraordinary innovation in applying operations research to make a major impact on an organization and society.
"This esteemed honor recognizes outstanding examples of innovative operations research that improves organizations and often changes people's lives. This is what MISO and its stakeholders and members strived to do by implementing wholesale energy and ancillary services markets in the Midwest," said MISO President and CEO John R. Bear. "Through the value that these markets bring, MISO members have realized a cumulative savings between $2.1 and $3 billion from 2007 to 2010, and an estimated $6.1 to $8.1 billion through 2020."
Operations research -- the discipline of applying advanced analytical methods to help make better decisions -- was instrumental in the design and launch of MISO's energy and ancillary services markets, which improve reliability and increases efficiencies in the use of power plants and transmission grid assets resulting in billions of dollars saved.
In its 40th year, the annual Edelman gala was held last night in Chicago to honor six finalists who began the application process last October. In addition to MISO, the other finalists included:
- CSAV for a strategic empty container logistics optimizations in a major shipping company;
- Fluor Corporation for project management and change -- a simulation based system for better performance;
- The Industrial and Commercial Bank of China (ICBC) for branch reconfiguration practice through operations research in ICBC;
- IHG (InterContinental Hotels Group) for retail price optimization at InterContinental Hotels Group;
- The New York State Department of Taxation and Finance for tax collection optimization for the state of New York.
Previous winners include IBM, Xerox, Coca-Cola, and Procter and Gamble.
A panel of judges critiqued each finalist on the following criteria:
- Implementation. Implementation and use of the work.
- Impact/Value. The major quantifiable impacts of the work.
- Technical Solution. Use of technical innovation from the creation of new methods as well as the application of existing methods to new problems or new environments.
- Difficulty. Judges look for political, technical and managerial challenges overcome.
- Transportability. Is this work portable to other applications or industries?
"This honor further reinforces our members' investment in building, implementing and perfecting a suite of market services from which measureable value is derived and can be offered to future members and their customers," added Bear.
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.