September 25, 2024
MISO, TVA to Enter Agreement on Emergency Purchases
Tennessee Valley Authority
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MISO and the Tennessee Valley Authority are poised to strike an agreement on emergency energy transactions after months of RTO leadership complaining that TVA doesn’t return the favor of energy transfers in times of need.

INDIANAPOLIS — MISO and the Tennessee Valley Authority say they’re poised to strike an agreement on emergency energy transactions after months of RTO leadership complaining that TVA doesn’t return the favor of energy transfers in times of need.

The two have confirmed they will file an agreement with FERC to codify emergency purchases between the federal utility and the RTO.

According to TVA, the agreement is between MISO and two authorized TVA purchaser utilities. It will allow MISO to “act on their behalf to purchase power from TVA during certain emergency conditions, consistent with TVA’s obligations under the TVA Act,” TVA spokesperson Scott Fiedler said.

MISO said the draft agreement is not publicly available yet.

“We are focused on establishing a process for the provision of emergency energy during emergency events to support reliability on our respective systems, as well as provide terms for compensation,” MISO spokesperson Brandon Morris said. MISO did not comment on the degree it expects emergency transfers from TVA to benefit its operations.

During MISO Board Week in Indianapolis on Sept. 17, Vice President of System Planning Aubrey Johnson said in early October, TVA operators will visit MISO’s control room in Little Rock, Ark., to perform desktop exercises to familiarize themselves with MISO operations.

Johnson said he and other MISO leaders in turn will travel to Chattanooga, Tenn., to celebrate the emergency energy agreement the two should have completed by then.

The agreement is meant to forge a more symbiotic relationship between the two. Prior to the agreement, MISO leadership expressed disappointment in TVA because although MISO has assisted TVA with exports — especially during the late December 2022 winter storm — TVA as a rule didn’t flow power to MISO. (See “JOAs with Neighboring Systems?” MISO Winter Recap Centers on December Emergency.)

“TVA is an interesting animal in the Eastern Interconnect. They are limited in who they can sell power to,” Executive Director of Market Operations J.T. Smith said when the agreement was in the works in spring.

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