MISO Unlocks Billions in Savings Through the Application of Operations Research for Energy and Ancillary Services Markets

Brian Carlson (), Yonghong Chen (), Mingguo Hong (), Roy Jones (), Kevin Larson (), Xingwang Ma (), Peter Nieuwesteeg (), Haili Song (), Kimberly Sperry (), Matthew Tackett (), Doug Taylor (), Jie Wan () and Eugene Zak ()
Additional contact information
Brian Carlson: Midwest Independent Transmission System Operator, Carmel, Indiana 46032
Yonghong Chen: Midwest Independent Transmission System Operator, Carmel, Indiana 46032
Mingguo Hong: Midwest Independent Transmission System Operator, Carmel, Indiana 46032
Roy Jones: ElectriCities of North Carolina, Raleigh, North Carolina 27604
Kevin Larson: Midwest Independent Transmission System Operator, Carmel, Indiana 46032
Xingwang Ma: Utilicast, Kirkland, Washington 98083
Peter Nieuwesteeg: Paragon Decision Technology, Bellevue, Washington 98004
Haili Song: Utilicast, Kirkland, Washington 98083
Kimberly Sperry: Midwest Independent Transmission System Operator, Carmel, Indiana 46032
Matthew Tackett: Midwest Independent Transmission System Operator, Carmel, Indiana 46032
Doug Taylor: Midwest Independent Transmission System Operator, Carmel, Indiana 46032
Jie Wan: Alstom Grid, Redmond, Washington 98052
Eugene Zak: Alstom Grid, Redmond, Washington 98052

Interfaces, 2012, vol. 42, issue 1, 58-73

Abstract: Over the past few years, the Midwest Independent Transmission System Operator, Inc. (MISO) has transformed the electric utility industry in 13 Midwestern US states through the development and implementation of energy and ancillary services markets. MISO uses mixed-integer programming to determine when each power plant should be on or off. Operations research methods set energy output levels and establish the prices at which energy trades. These new markets increased the efficiency of the existing electric infrastructure (power plants and transmission lines) in the Midwest, improved the reliability of the grid, and reduced the need for future infrastructure investments. These advances enabled the MISO region to realize between $2.1 billion and $3.0 billion in cumulative savings from 2007 through 2010. We expect additional savings of $6.1 billion to $8.1 billion through 2020.

Keywords: energy; electricity; transmission; reliability; planning; OR in a region; supply; demand; values; optimization; performance; linear programming; integer programming; dynamic programming; Lagrangian (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:inm:orinte:v:42:y:2012:i:1:p:58-73

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