• 608 TWh Energy Demand
  • 127.5 GW Installed Capacity
  • 10 % Renewable Share


MISO operates competitive wholesale electricity markets in the Midcontinent region that encompasses all or parts of 15 U.S. states and the Canadian province of Manitoba. Thermal resources produce the bulk of MISO’s electricity with coal and gas combining for nearly 75% of generation. Due to good quality resources, wind represents the majority of renewable generation in the Midcontinent region.

  • Total Capacity
  • Total Generation
MISO, 2019, US Energy Information Agency, 2019

128 GW


Market Design

How is the market structured?

MISO is structured as a competitive wholesale market with energy transacted on a day-ahead and real-time (5 minute) basis. MISO also operates several markets for ancillary services. Capacity requirements are addressed through bilateral transactions or through a MISO-administered voluntary annual auction.

MISO covers all or a portion of fifteen states (Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, North Dakota, South Dakota, Texas, and Wisconsin) as well as the Canadian province of Manitoba. MISO is interconnected with PJM to the east and the Southwest Power Pool (SPP) to the south.

The main pricing hub in MISO is the Indiana Hub. Nodal pricing exists throughout MISO with pricing varying with local supply/demand conditions as well as transmission considerations more generally. Nodal pricing is aggregated to calculate energy prices for 8 separate energy hubs, as well as the energy price at interconnection points with neighboring regions.

Buyers and sellers can hedge their exposure in the forward market within a ~5 year window via over the counter trading platforms.

Many consumers receive power from their local utility (the utility covering the geographic area in which the load is located). Consumers can also opt to buy power directly from a generator, or through a retailer (in states where competitive retail markets exist) though the utility will continue to charge certain fees (i.e. transmission/distribution/other system fees).

Retail choice is available within the following MISO states: Illinois, Michigan, and Texas.

In general, a bill can be broken into three components: generation, transmission and distribution. Generation costs are broadly correlated with wholesale energy prices, transmission costs are socialized across all consumers, and distribution costs vary based on the local cost of each utility. Other system and social charges (such as to support energy efficiency programs) are generally socialized across consumers and are also reflected on the bill from the local utility.

In the US, renewable generation is certified and tracked using RECs (Renewable Energy Certificates). One REC is issued for every MWh of eligible renewable energy that is delivered to the electric grid. A REC contains unique identifying details of the energy generated, including the renewable fuel type, project name and location, the vintage of the project and the generation, and serial number.

Within MISO, the Midwest Renewable Energy Tracking System (M-RETS) is used to track generation ownership and attributes, including RECs.

How are RECs (Renewable Energy Certificates) procured? Through market transactions or long-term contracts.

Are renewable Power Purchase Agreements (PPAs) available? Yes.

Are Green Tariffs available? Yes, Green tariffs are available in Kentucky, Michigan, Minnesota, and Wisconsin

System Operator:

  • MISO

Key Government Departments:

  • State energy departments which oversee policy related to power markets within their state.
  • Public Service/Utility Commissions which regulate and oversee the electricity industry in their state.


  • The Federal Energy Regulatory Commission (FERC) is the federal agency that regulates the transmission and wholesale sales of electricity in interstate commerce.
  • The North American Electric Reliability Corporation (NERC) is a not-for-profit international regulatory authority whose mission is to assure the reliability and security of the bulk power system in North America.

  • wind Wind
  • Hydro Hydro
  • dg-solar DG Solar