MISO said its most recent financial estimates show operating costs continuing to creep up through 2030, making $500 million annual operating budgets the norm and forcing it to collect more from members.
The RTO predicted that by 2030, it would need anywhere from $488 million to $517 million in its base operating budget as salaries and benefits and computer maintenance become more expensive.
MISO said its base operating expenses likely would climb 5.4 to 7% annually, in line with the 6.9% average growth it experienced in its budget from 2023 to 2026. According to MISO, salaries and benefits and computer maintenance account for 56% and 34%, respectively, of the total estimated growth.
MISO also predicted it would add an additional $43 million to $48 million in project investments on top of its base operating budget by 2030.
For 2026, MISO agreed to stick to a $394.7 million base operating budget and $36 million in project investments. (See MISO Tempers 2026 Budget Plan.)
Over the next five years, MISO expects to increase its membership rate by anywhere from 3.3-6.3% annually, landing anywhere from $0.61/MWh to $0.68/MWh by 2030.
MISO upped the rate it collects from members from $0.51/MWh in 2025 to $0.54/MWh in 2026.
On average, MISO said its rates increased 8.1% from 2023 to 2026. MISO said the past three years of increases were driven mostly by increases in depreciation and lower interest income from other operating costs.
MISO expects to bill 728 TWh of load in 2026, 756 TWh in 2027 and an average 816 TWh from 2028 to 2030. By 2030, MISO said it could serve anywhere from 814 to 857 TWh in load.
“Personnel and technology are MISO’s primary asset and make up the majority of MISO’s cost profile today and are expected to continue to be pressure points in the future,” MISO CFO Melissa Brown explained during a Mach 17 teleconference of the Audit and Finance Committee of the MISO Board of Directors.
MISO said salaries and benefits, computer maintenance and outside vendor services historically have accounted for almost 90% of MISO’s operating costs. MISO said its technology costs have been mounting in recent years, with computer maintenance becoming a larger expense and third-party support shifting to business models where MISO pays for service, rather than owning the assets.
Brown also said vendors’ prices increased more than the general inflation rate for things like licenses and support agreements. MISO’s five-year financial forecast is “heavily dictated by what we need to do to keep up with market dynamics.” She said MISO is required to keep up with customer needs, new regulatory requirements and growing load.
Brown said MISO needs continual technology upgrades to achieve the computing power it needs, take advantage of improvements and keep abreast of AI advancements.
On top of those, Brown said MISO must protect itself from cyberattacks as geopolitical tensions boil over in places like Iran and Ukraine.
Brown also said the cost of employee benefits through 2027 will increase beyond what MISO originally expected to pay. “Items outside of MISO’s control have considerable impact on ongoing costs,” she said.
MISO Director Barbara Krumsiek said MISO and members haven’t seen “these kinds” of cost trends in at least a decade, if ever.
MISO CEO John Bear said the RTO used a conservative estimate for load growth. He said greater load growth would temper costs. “We’re in a little bit of a moving target right now.”
