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MISO Business Plan: Enhanced Reliability, Customer Service & Market Implementation

James P. Torgerson,President & CEOMidwest ISO

December 17, 2003

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Topics for Discussion

• Midwest ISO – A Brief Introduction

• MISO Business Plan

• Lessons Learned

• Improved Reliability

• Joint Operating Agreement

• Outreach

• Midwest Market Update

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The Midwest ISO is an independent, non-profit entity that monitors the transmission grid of high voltage electricity across much of the Midwest.

Operational since December 15, 2001

• 35 Control Areas• 23 Transmission Owners

• Two Centers Carmel, IN St. Paul, MN

• One Reliability Region

Midwest ISO – A Brief Introduction

Midwest ISO Service Territory,with planned expansion

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MISO Business PlanEnhanced Reliability• Meet or exceed expectations• Regain customer trust in reliability function

Customer Service• Be pro-active• Listen• Respond promptly• Carry out responsibilities timely

Market implementation• Communicate benefits of markets• Flawless schedule implementation• Thorough trials & testing

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• The events of August 14th have raised the bar and renewed our focus on reliability

• We are applying lessons learned from an unfortunate situation as we move forward

• We are aggressively implementing robust reliability tools on an accelerated schedule

• Restoring public confidence is critical

Lessons Learned

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Reviewed operations with Control Areas

State Estimator – Began Implementation of Enhancements

Added 15,000 data points to MISO model

Flowgate monitoring Tool

Added 217 additional Flowgates

Alarming

All real-time voltages and MW flows vs. limits 100 k and above

Control Room Enhancements

Real-Time overview displays in MISO Control Room greatly enhanced

Increased staffing and bolstered training of Control Room personnel

Improving Reliability – What We’ve Done Since August 14

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Reliability Staff Expansion

* Provide additional Reliability Coordinators

* Provide shift supervisors

* Hire new Executive Director for St. Paul Office

Enhanced Voice Communication System

* Installation of new Turret Phone System in Control Center during 1st quarter 2004

  Comprehensive Operator Training Program

    * Simulator Training

* Cross-Training with Control Areas

Improving Reliability – Upcoming Activities

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Joint Operating Agreement With PJM

Mutual Data and Communication Exchange

Complementary System Processes

Coordinated System Congestion Management

Coordinated System Planning

Arrangements with other entities bordering MISO

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Outreach Increase external awareness

Collaborative effort for Market tariff

Support stakeholder readiness for markets

Continuous input from Organization of MISO States

Taking a leadership role among RTOs/ISOs in evaluating strengths and weaknesses and training operators

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Midwest Market Update

December 2004 – Market launch

* March 2004 – Initiate Trials

* March 2004 – Tariff filing

* August 2004 – Parallel operations

* October 2004 – Final Trials