Midcontinent Independent System Operator Inc

What it reported doing in 2024

On december 19, 2001, midcontinent independent system operator, inc. (miso or the company) became the nation's first regional transmission organization (rto) approved by the federal energy regulatory commission (the ferc). As an rto, miso provides transmission service on behalf of its members who own transmission assets. In addition, miso is a north american electric reliability corporation (nerc) certified reliability coordinator. In that capacity, miso monitors the flow of electricity over the transmission systems of its members who own transmission assets. Miso was incorporated as a Delaware non-stock, nonprofit corporation in march 1998. The company is governed by an independent board of directors. Membership in miso is open to owners of electric transmission facilities as well as other participants in the electric energy market. Fifty-nine transmission owners with more than 77,000 miles of transmission lines, 202,000 megawatts of electric generation, and approximately $37.9 billion in installed gross transmission assets are currently participating in miso. On december 15, 2001, the company began providing reliability coordination services to the transmission-owning members of miso and their customers. On the same date, miso also began providing operations planning, generation interconnection, maintenance coordination, long-term regional planning, market monitoring, and dispute resolution services. The company commenced substantially all operations on february 1, 2002, the date miso began providing regional transmission service under its ferc-accepted open access transmission and energy markets tariff (the tariff). On april 1, 2005, miso formally began operating its market-based congestion management system which features the following: - day-ahead energy market - real-time energy market - financial transmission rights (ftr) market the day-ahead and real-time energy markets are designed to reliably make the most efficient use of all generation and transmission resources within the region based on bids and offers submitted by market participants. The day-ahead and real-time energy markets price transmission system congestion through the use of locational marginal pricing (lmp) algorithms. The financial transmission rights market provides a means of hedging lmp-based congestion costs. On january 6, 2009, miso began operating a market for ancillary services. The ancillary services market integrates the procurement and use of regulation and contingency reserves with the existing real-time energy market. Miso also became an nerc-certified balancing authority on january 6, 2009.

Financial Efficiency

• Mission deployment rate: 88.8%; rating input score 89
• Program expense ratio: 85%; rating input score 85
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 68th percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 90%; rating input score 90; 38th percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 0%; rating input score 29; 29th percentile among comparable filings
• Total-asset coverage ratio: 5.44; rating input score 86; 86th percentile among comparable filings
• Liabilities to assets ratio: 1; rating input score 7; 7th percentile among comparable filings
• Officer compensation ratio: 3.5%; rating input score 31; 31st percentile among comparable filings

Growth

• Program expense growth: 6.1% per year; rating input score 100; 50th percentile among comparable filings
• Revenue growth: 4.9% per year; rating input score 100; 42nd percentile among comparable filings
• Asset growth: 12.3% per year; rating input score 100; 79th percentile among comparable filings