The Midwest Independent Transmission System Operator Inc. (MISO), PJM Interconnection and the Tennessee Valley Authority (TVA) plan to develop a multiregional approach to strengthen electric transmission and operations.

The memorandum of understanding (MOU), executed by the three organizations, initiates the first step of a process that would, when complete, facilitate a transparent market covering the movement of the most competitive sources of generation supply throughout a significant portion of the Eastern Interconnection. The Eastern Interconnection refers to North America's electric system east of the Rocky Mountains, excluding Texas, and supplies 622,000 MW of peak electric load. The area comprised by MISO, PJM and TVA represents 270,000 MW, or 43% of the Eastern Interconnection.

“This MOU is a critical first step toward beginning the development of standardized processes that will enable smooth coordination of power flows and, ultimately, bring the benefits of robust wholesale electricity markets to customers across the Eastern Interconnection,” said James P. Torgerson, MISO president and CEO. “Working with TVA will allow for better coordination of electricity flows — not only east/west but north/south — which is pivotal given TVA's central position in the Eastern Interconnection.”

“This initiative will help realize the goals of open access and will further FERC's directive of a joint and common energy market,” said Phillip G. Harris, PJM president and CEO. “We look forward to building on the successful integration of Allegheny Power into PJM's market, which demonstrates that a common wholesale electricity market can meet the differing needs and reliability practices of multiple states and regions.”

“We recognize that as wholesale power markets develop, there must be stronger regional approaches to ensure uniform access, standard computer protocols, equitable market rules and quality transmission service nationwide,” said Glenn McCullough, TVA chairman. “This initiative, in combination with our continuing efforts with public power partners and SeTrans participants, like Southern Co. and Entergy, provides a mechanism to develop a broad and seamless approach to wholesale energy markets across a broad region.”
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