MISO said it created more than $4 billion in value for its membership over the course of 2022.
That’s according to grid operator’s 2023 Value Proposition, which calculates last year’s collective annual savings for members versus the lack of a resource sharing pool.
MISO said it has saved members about $40 billion since the value proposition was first calculated at about $1 billion in 2007. The RTO said the value proposition shows a $12 return for every dollar of investment in MISO membership.
“I’m proud that MISO continues to deliver substantial benefits to our entire footprint,” MISO CEO John Bear said in a press release. “We spend a lot of time with our members and stakeholders to better understand their needs and ensure alignment as our industry continues to rapidly change.”
As with prior years, MISO said its large geographic footprint accounted for most of the cost savings. It said its ability to share capacity saved members between $2 billion and almost $3 billion.
MISO said its energy dispatch efficiencies, where its real-time and day-ahead markets deploy the most economic resources, saved members from $620 million to $690 million. The RTO also said its renewable resource optimization — which connects low-cost renewable resources where they’re helpful, thus reducing the need for more capacity investment — saved members between $410 million to $480 million.
Last year, MISO estimated it saved members more than $3 billion throughout 2021. (See MISO: 2021 Member Savings Exceeded $3B.) It also said it expects the savings it delivers to more than triple within 20 years, to around $11.6 billion to $14.3 billion by 2040. (See MISO Membership to Become More Valuable in Future.)
“We work tirelessly to ensure that our region receives the most out of MISO membership,” said Wayne Schug, MISO’s vice president of strategy and business development. “Reliably building and operating the grid of the future while supporting our members’ sustainability and affordability objectives requires close collaboration. As we advance the work discussed in MISO’s reliability imperative and enable the future grid, we expect the value proposition to grow substantially.”
“Reliability imperative” refers to the responsibility to ensure the clean energy transition occurs in a reliable and orderly manner.
