Last spring, the Midcontinent Independent System Operator (MISO), which operates the electricity grid serving 45 million people across the central United States, found out it was at a higher risk of power outages than it believed. The result, as I explain below, was skyrocketing electricity bills for thousands of people. To avoid similar outcomes in the future, MISO and its stakeholder community went into problem-solving mode.
MISO has historically attempted to ensure reliability of the electricity grid by operating a capacity market, through which “energy resources” such as power plants, wind farms, and energy efficiency or demand response programs get paid for their commitment to deliver electricity in the future.
