Midwest ISO begins market trials 45-day period to demonstrate operational readiness

CARMEL, IN, August 1, 2001 — The Midwest Independent Transmission System Operator, Inc. (MISO) has kicked off 45 days of Market Trials, a series of validations and drills that will help demonstrate the MISO’s ability to operate the first regional transmission system in the Midwest.

“With the help of our Transmission Owners we are beginning the readiness demonstrations that will test all of our systems, from the initial point when transmission requests are made to the time when the bills are issued,” said Michael J. Gahagan, vice president, chief information officer and chief strategy officer of the Midwest ISO.

In order to make that happen seamlessly, the MISO’s Integrated Control Center Systems must work synchronously together across multiple computer interfaces, Gahagan added.

During Market Trials the Midwest ISO will conduct drills in transmission market activities, tagging and scheduling, flowgate verification, transmission (operational) planning, security coordination, security response, outage scheduling, maintenance coordination, 24×7 operations and daily and monthly settlements and billing.

Prior to the MISO taking over functional control of the transmission system, the Midwest ISO Transmission Owners must certify to the Federal Energy Regulatory Commission that all the necessary features are in place at the Midwest ISO to ensure continuing reliable grid operations.

Today’s announcement adds to the milestones Midwest ISO is achieving toward becoming operational by Dec. 15 including:

* Defining a means for tax exempt-financed entities to join an independent system operator;

* The creation of a single “super-regional” rate for the combined members of the Midwest ISO and the Alliance RTO, covering more than 785,000 square miles from the Dakotas to the Mid-Atlantic region;

* Establishing operational agreements between the Midwest ISO and the Alliance RTO on determination and coordination of available transfer capability (ATC), security coordination, transmission loading relief coordination, Day One imbalance market implementation and generation interconnection standards.

The non-profit Midwest ISO, based in Carmel, Indiana, is scheduled to become fully operational on Dec. 15, 2001. The transmission owners who have signed the MISO Transmission Owners agreement are Alliant Energy; American Transmission Co.; CILCO; Cinergy; City Water, Light and Power Corp. (Springfield, IL); Lincoln Electric System; Hoosier Energy Rural Electric Cooperative; Indianapolis Power & Light Co.; LG&E Corporation; Minnesota Power, and its subsidiary Superior Light and Power; Montana-Dakota Utilities, Otter Tail Power Co.; Southern Illinois Power Cooperative; Vectren (formerly Southern Indiana Gas & Electric); Wabash Valley Power Association; UtiliCorp United, and Xcel Energy. In addition, five other utilities have signed conditional applications for membership. They are: Manitoba Hydro, Great River Energy, Dairyland Power Cooperative, Southern Minnesota Municipal Power Agency and Sunflower Electric Corp.

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