• Operate in portions of thirteen states: Illinois, Indiana, Iowa, Kentucky, Maryland, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, Virginia, West Virginia, Wisconsin
• Oversee 55,000 miles of transmission lines.
• Encompass 78,000 megawatts of electric generation.
• Service territory will cover 204,000 square miles.

Participants:

• Allegheny Energy
• Alliant
• Ameren
• Cinergy
• CILCO
• Duquesne Light
• Hoosier Energy
• Illinois Power
• LG&E Energy
• Wabash Valley Power
• Wisconsin Electric
• Commonwealth Edison

February 1996 - Six owners announced intent to study formation of a Midwest ISO.

April 1997 - Direct stakeholder participation in Management Council and Working Groups.

November 1997 - Filing documents completed.

December 1997 - Only four transmission owners agreed to participate in filing.

January 15, 1998 - MISO FERC filing with 9 transmission owners.

June 4, 1998 - 12 transmission owners.

• Non-discriminatory open access to a large regional system.
• Eliminate rate pancaking and loop flow issues.
• Regional transmission planning.
• Maintain and enhance system reliability.
• Promote wholesale competition.

• Not-for-profit entity
• Independent governance structure
• Operate facilities above 100kV
• Transmission service
  • ATC calculations
  • reservations
  • scheduling
• Pricing
  • ZONAL without pancaking
  • Eligible customers during transition period
  • All customers after transition period

• Midwest ISO region differs from ISOs with prior pool history.
• Over 30 control areas in ECAR & MAIN.
• Midwest ISO responsible for transmission and reliability control area functions.
• Generation control for congestion management and reliability.
• Significant cost and complexity to merge control areas are unnecessary.

• Top down - bottom up approach.
• ISO responsible for regional planning.
• Transmission owner plans for local needs.
• ISO approves all plans.
• Provisions to ensure financing and construction.

• Midwest Independent Transmission System Operator incorporated in March.
• File for IRS tax exempt status.
• Executive search firm to identify BOD candidates.
• Midwest ISO approval in September.
• Election of BOD by owner and non-owner members.
• Full operation 2000.

• Allegheny Energy joined MISO in April 1998.
• MISO will stimulate a competitive marketplace.
• MISO will help mitigate market power concerns.
• MISO will eliminate rate pancaking.
• MISO will facilitate merger approval.
• MISO will help sustain system reliability in the face of generation competition near term.
• MISO will provide Allegheny and its customers with access to a larger regional market.