Continued reforms needed to reliably manage resource transition
Submitted
On June 20, Midcontinent Independent System Operator, Inc. (MISO) and the Organization of MISO States (OMS) released the annual OMS-MISO survey results, which indicate a growing capacity deficit beginning in the 2025/26 planning year.
Next summer, MISO could see resource sufficiency ranging from a 2.7-gigawatt capacity shortfall to a 1.1-gigawatt surplus, underscoring the need to accelerate resource additions, monitor large load additions, and delay resource retirements to reliably manage the anticipated growth in electricity demand.
“Ensuring a reliable energy supply is more critical than ever,” said Josh Byrnes, OMS president and member of the Iowa Utilities Board. “As we face tightening capacity reserve margins compounded with rapid and large load additions, it is imperative for everyone from developers (new load and generation), economic development authorities, utilities, regulators, MISO, and other stakeholders to work in close coordination. Collaboration is essential to meet the growing demands of the MISO footprint and the rapidly changing system. Working together will ensure we collectively navigate the challenges ahead to ensure resource adequacy.”
This year’s survey includes new considerations to reflect a potential range of new, large load additions such as data centers and large manufacturing sites that could be added to the system in the near term. It also includes strong long-term growth driven by economic development activities and increased electrification. If the higher range of load additions comes to fruition – without a corresponding increase in capacity additions – the MISO region will likely see increased capacity deficiencies in the future.
“As outlined in our Reliability Imperative, there is an urgent need to continue and increase collaboration with our state regulators to ensure the evolving generation fleet can meet the growing demands across our footprint,” MISO CEO John Bear said. “Our work with OMS has always focused on having a better understanding of MISO’s resource adequacy picture, and this year’s survey enhancements are an example of how this work must develop and evolve to maintain a safe, reliable and affordable electricity system.”
OMS and MISO conduct the annual, voluntary survey to assess available resource capacity to serve the projected load over the next five years (i.e., planning years 2025/26 through 2029/30). The survey aligns with MISO’s resource adequacy process, and capacity sufficiency is based on generating units’ availability, also known as seasonal accredited capacity. MISO uses this survey along with other information, such as the Planning Resource Auction and Futures, to create a holistic picture of the near- and long-term outlook of the grid.
About Organization of MISO States
The Organization of MISO States Inc. is a non-profit, self-governing organization of representatives from each state with regulatory jurisdiction over entities participating in the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission organization as defined by the Federal Energy Regulatory Commission (FERC). The purpose of the OMS is to coordinate regulatory oversight among the states, including recommendations to MISO, the MISO Board of Directors, the FERC, other relevant government entities and state commissions as appropriate. Click here to learn more.
About MISO
Midcontinent Independent System Operator (MISO) is an independent, not-for-profit organization that delivers safe, cost-effective electric power across 15 U.S. states and the Canadian province of Manitoba. 45 million people depend on MISO to generate and transmit the right amount of electricity every minute of every day. MISO is committed to reliable, nondiscriminatory operation of the bulk power transmission system and collaborating with all stakeholders to create cost-effective and innovative solutions for our changing industry. MISO operates one of the world’s largest energy markets with more than $40 billion in annual gross market energy transactions. Click here to learn more.