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MISO Unlocks Billions in Savings Through the Application of Operations Research for Energy and Ancillary Services Markets

Author

Listed:
  • Brian Carlson

    (Midwest Independent Transmission System Operator, Carmel, Indiana 46032)

  • Yonghong Chen

    (Midwest Independent Transmission System Operator, Carmel, Indiana 46032)

  • Mingguo Hong

    (Midwest Independent Transmission System Operator, Carmel, Indiana 46032)

  • Roy Jones

    (ElectriCities of North Carolina, Raleigh, North Carolina 27604)

  • Kevin Larson

    (Midwest Independent Transmission System Operator, Carmel, Indiana 46032)

  • Xingwang Ma

    (Utilicast, Kirkland, Washington 98083)

  • Peter Nieuwesteeg

    (Paragon Decision Technology, Bellevue, Washington 98004)

  • Haili Song

    (Utilicast, Kirkland, Washington 98083)

  • Kimberly Sperry

    (Midwest Independent Transmission System Operator, Carmel, Indiana 46032)

  • Matthew Tackett

    (Midwest Independent Transmission System Operator, Carmel, Indiana 46032)

  • Doug Taylor

    (Midwest Independent Transmission System Operator, Carmel, Indiana 46032)

  • Jie Wan

    (Alstom Grid, Redmond, Washington 98052)

  • Eugene Zak

    (Alstom Grid, Redmond, Washington 98052)

Abstract

Over the past few years, the Midwest Independent Transmission System Operator, Inc. (MISO) has transformed the electric utility industry in 13 Midwestern US states through the development and implementation of energy and ancillary services markets. MISO uses mixed-integer programming to determine when each power plant should be on or off. Operations research methods set energy output levels and establish the prices at which energy trades. These new markets increased the efficiency of the existing electric infrastructure (power plants and transmission lines) in the Midwest, improved the reliability of the grid, and reduced the need for future infrastructure investments. These advances enabled the MISO region to realize between $2.1 billion and $3.0 billion in cumulative savings from 2007 through 2010. We expect additional savings of $6.1 billion to $8.1 billion through 2020.

Suggested Citation

  • Brian Carlson & Yonghong Chen & Mingguo Hong & Roy Jones & Kevin Larson & Xingwang Ma & Peter Nieuwesteeg & Haili Song & Kimberly Sperry & Matthew Tackett & Doug Taylor & Jie Wan & Eugene Zak, 2012. "MISO Unlocks Billions in Savings Through the Application of Operations Research for Energy and Ancillary Services Markets," Interfaces, INFORMS, vol. 42(1), pages 58-73, February.
    • Handle: RePEc:inm:orinte:v:42:y:2012:i:1:p:58-73
    DOI: 10.1287/inte.1110.0601
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    Citations

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    Cited by:

    1. Kai Pan & Ming Zhao & Chung-Lun Li & Feng Qiu, 2022. "A Polyhedral Study on Fuel-Constrained Unit Commitment," INFORMS Journal on Computing, INFORMS, vol. 34(6), pages 3309-3324, November.
    2. Lukas Hümbs & Alexander Martin & Lars Schewe, 2022. "Exploiting complete linear descriptions for decentralized power market problems with integralities," Mathematical Methods of Operations Research, Springer;Gesellschaft für Operations Research (GOR);Nederlands Genootschap voor Besliskunde (NGB), vol. 95(3), pages 451-474, June.
    3. Abiodun, Kehinde & Hood, Karoline & Cox, John L. & Newman, Alexandra M. & Zolan, Alex J., 2023. "The value of concentrating solar power in ancillary services markets," Applied Energy, Elsevier, vol. 334(C).
    4. Ben Knueven & Jim Ostrowski & Jianhui Wang, 2018. "The Ramping Polytope and Cut Generation for the Unit Commitment Problem," INFORMS Journal on Computing, INFORMS, vol. 30(4), pages 739-749, November.
    5. Jianqiu Huang & Kai Pan & Yongpei Guan, 2021. "Multistage Stochastic Power Generation Scheduling Co-Optimizing Energy and Ancillary Services," INFORMS Journal on Computing, INFORMS, vol. 33(1), pages 352-369, January.
    6. Frederic Murphy & Axel Pierru & Yves Smeers, 2016. "A Tutorial on Building Policy Models as Mixed-Complementarity Problems," Interfaces, INFORMS, vol. 46(6), pages 465-481, December.
    7. John R. Birge, 2022. "George Bernard Dantzig," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 1909-1911, May.

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