MidAmerican Energy Co. and the Midwest Independent Transmission System Operator, Inc. (Midwest ISO) have announced MidAmerican's intention to fully integrate into the Midwest ISO as a transmission-owning member on Sept. 1.
Midwest ISO currently provides MidAmerican with reliability coordination services. This change allows MidAmerican to access one of the largest markets in the world for buying and selling power and results in MidAmerican turning over functional control of its transmission system to the Midwest ISO. MidAmerican will also participate in the ancillary services market, which provides greater flexibility in addressing unexpected loss of generation and transmission while increasing overall grid reliability.
John Bear, Midwest ISO president and CEO, said, "This decision is a significant development for the region and demonstrates that MidAmerican Energy recognizes the value we can deliver to them."
"MidAmerican Energy's membership in the Midwest ISO brings most of Iowa into our organization and will increase overall system reliability," Bear said. "Another member increases the effectiveness of our markets by providing greater efficiencies. This allows us to extend the benefits of a regional grid to even more customers throughout the Midwest."
The addition of MidAmerican incorporates approximately 7,000 megawatts of generating capability into Midwest ISO's footprint.
MidAmerican will also benefit from Midwest ISO's regional planning efforts that identify the most effective locations and means for upgrades in generation, transmission and equipment and have led to the completion of nearly $1 billion in new infrastructure and improvements. In addition, Midwest ISO's long-term transmission expansion planning is expected to reduce congestion costs in the region by $2 billion annually. The Midwest ISO's independence ensures that transmission system improvement recommendations are made solely to support power reliability and a strong market.
MidAmerican Energy, headquartered in Des Moines, Iowa, is the largest utility in Iowa and provides service to more than 722,000 electric customers in a 10,600-square-mile area from Sioux Falls, S.D., to the Quad Cities area of Iowa and Illinois. More information is available at midamericanenergy.com.