AN INTRODUCTION TO THE MIDWEST ISO

							 AN INTRODUCTION TO
 THE MIDWEST ISO

By Bill Malcolm
Manager-State Regulatory Affairs

Pierre, South Dakota
June 9, 2006
    Overview
    Midwest ISO is an independent, non-profit reliability coordinator for
    the transmission of high voltage electricity via a security constrained
    economic dispatch across all or parts of 15 states and Manitoba

     Began Reliability Operations on December
      15, 2001
     Market Operations since April 1, 2005
     Multi-control area environment (35 Control
      Areas; 26 in the market)
     Peak Loads:
         - Summer 2005--131,434 MW set on
            August 3, 2005
         - Winter 2005/2006: 106,900 set on
            December 19, 2005




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    RTO Services




         Monitor flow of power over the high voltage transmission system
         Schedule transmission service
         Manage power congestion through locational marginal pricing
          (LMP) energy market
         Long term regional transmission planning
         Operate real-time and day-ahead energy markets
         Five minute security-constrained dispatch of the market
          (maintaining reliability in most economic manner)



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    South Dakota and Midwest ISO

     Otter Tail, MDU, Xcel are transmission
      owning members
     Basin, Missouri River and WAPA are non-
      transmission owning members. MidAmerican
      is a member in the power market sector
     PUC is one of the lead states on the MISO
      Advisory Committee




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    Midwest ISO Market Operations

     Locational Marginal Pricing (LMP) based upon Security
      Constrained Economic Dispatch (SCED)
     SCED minimizes cost to serve load while maintaining
      reliability of electrical system
     1,435 Commercial Pricing Nodes
     Generator instructions calculated
      and sent every 5-minutes




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                                                              5
     Centralize Generation Dispatch and Outage
      Management




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    New Power Plants in South Dakota

     Big Stone #2 (600 MW coal)
     Brookings County 100 MW wind project:
      interconnection agreement signed
     Two other 100.5 MW wind projects and one
      138 MW wind plant being studied in Deuel
      County
     SD/IA/MN area of concern: amount of
      proposed generation exceeds reliable outlet
      transmission capacity

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    Transmission Service Requests


       Approved 114 transmission service requests
       136 requests under study (Big Stone Unit 2,
        group study involving constrained facilities in
        southwest Minnesota, plus one new study)




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     Big Stone #2 Proposed Upgrade




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     West Study Group Upgrades




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      Seams Coordination



                             IESO



             MAPP
                                    PJM


                            TVA
                      SPP



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     MISO-MAPPCOR
     Seams Operating Agreement (SOA)
     • Data exchange
     • Planning Coordination
     • Outage Coordination
     • Transmission Service Request Evaluation
       Coordination
     • Congestion Management Process (TLR
       Avoidance)




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     Current Issues/Recent Developments

      Summer assessment: 18% reserve margin
      Ancillary service markets
      June 5 resource adequacy FERC filing
      Single dispatch MISO-PJM: Savings less
       than .2% of total production costs




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     Upcoming Events
      6/14 Advisory Committee meeting, state of
       the market report presented
      6/29 Regional expansion criteria benefits
       task force meeting (economic upgrades to
       the grid)
      7/10 Ancillary services task force
      9/1 RECB filing expected: economic
       upgrades to the grid
      9/20 Advisory Committee meeting, St. Paul

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     To get involved in the Midwest ISO

      Sign up for West study group, RECB, and
       planning advisory committee on the extranet
      Participate in our stakeholder meetings
      Tour our control centers in St. Paul or
       Carmel
      Contact Bill Malcolm (317) 249-5426 or
       bmalcolm@midwestiso.org
      Visit our website: www.midwestmarket.org

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