Later this month, the Government Accounting Office (GAO), a non-partisan arm of Congress, is expected to begin reviewing "the costs and operating practices" of the Midwest Independent System Operator (MISO) "as a case study of whether regional grid operators are saving--or costing--consumers money." The GAO probe comes at the request of House Transportation and Infrastructure Chairman James Oberstar (D-MN) and former Sen. Mark Dayton (D-MN). Oberstar and Dayton were responding to concerns expressed by Minnesota municipal utilities and the American Public Power Association (APPA).
The Oberstar-Dayton letter urged a broad study of RTO and ISO performances around the country. "ISOs and RTOs were supposed to save consumers millions of dollars every year. Unfortunately, they seem to be costing consumers millions of dollars instead," the letter said.
The areas of GAO inquiry will include use of a single price auction, price volatility, and the level of MISO's start-up and administrative expenses. The congressional letter to the GAO also expresses particular concern that the "single price" auction is providing inflated revenues to coal and nuclear plants in the Midwest, because market clearing prices may be set by expensive gas-fired units.
A MISO spokesman said that MISO has not been contacted by the GAO and noted that its pricing practices are public knowledge since they are contained in a FERC-filed tariff.