Demand Response Rules Are Changing. MISO Shows How.

The grid operator is in the midst of a transformation and now faces a growing reliance on demand-side resources year-round.


By Elta Kolo and Chloe Holden
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For independent system operators and regional transmission organizations (ISO/RTOs), the need to rely on distributed energy resources as a system resource is growing.
Power systems governed by wholesale markets are evolving as traditional fuel-based generation retires. As a result, ISOs and RTOs are appealing to FERC to change the way demand response resources play in the market.
The Midcontinent ISO illustrates incremental improvements to demand response mechanisms that are underway, as noted in a new report from Wood Mackenzie Power & Renewables.
MISO’s generation units are aging and retiring, resulting in shrinking reserve margins. At the same time, their resource mix and that of interconnected neighbors is gaining more bulk and distributed renewable generation. Lastly, outage rates are increasing, occurring more frequently outside of traditional summer months.


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