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17cv01906 Sierra Club v. EPA ED_O01523_00006051 -00001 MISO drives value creation through efficient and reliable markets, operations, planning, and innovation The most reliable, value-creating RTO Eagan. MN MISO by-the-numbers High Voltage Transmission 65,800 miles Generation Capacity 174,000 MW Peak Summer System Demand 127,125 MW Customers Served 42 Million co co co Little Rock AR https://www.misoenergy.org/Aboutlls/LeadershipGovernance/Publishinglmages/Corporate%20Fact%20Sheet.ipq ` j MISO 17cv01906 Sierra Club v. EPA ED_001523_00006051-00002 MISO's resilience efforts address all stages of an event, and a variety of grid stressors Technology and Security Maturing identification, protection, detection and response capabilities Events S T R ESSO R S .O.p.e.r.a.t.io..n.s.: Improving the ability to anticipate, contain, and recover Miviaairkrceitas Operating efficient markets that incent and coordinate resilient outcomes Sys"tem Planninga Oj Enhancing planning criteria to ensure a reliable, flexible transmission system Draws upon Department of Energy, North American Electric Reliability Corporation, and National Academy of Engineering efforts related to resilience The term "Electric Grid" is the interconnected network for delivering electricity and includes the generation, transmission, and distribution systems, as weil as the NERC registered Functional Entities Definition expanded to include grid stressors such as change reiated to portfolio evolution and increasing complexity ` j MISO 17cv01906 Sierra Club v. EPA ED_001523_00006051-00003 MISO is prepared for and managing threats driven by events as well as changes Events > .v 2006 Change / .' >'- -rJx Lower reserve margins 2016 2031 I Examples include: Natural events and weather events Blackouts and major outages Cyber and physical attacks I threats Disruptions to related infrastructure (communications, fuel supply, transportation, water, waste-water, other) Examples include: Changing baseload resources, renewables, and grid topology Tightened reserve margins and importance of resource availability and system flexibility - Scarcity now seen in shoulder seasons - More supply variability with increased renewables New resource technologies - DER, storage, etc. Fuel supply and delivery vulnerabilities Increasing complexity - higher end-to-end interaction and interdependence (generation, transmission, distribution, and consumer) 17cv01906 Sierra Club v. EPA ` MISO ED_001523_00006051-00004 mplemented MISO is working to improve Grid Resilience Technology and Security Maturing identification, protection, detection and response capabilities Markets Operating efficient markets that incent and coordinate resilient outcomes System Planning Enhancing planning criteria to ensure a reliable flexible transmission system Operations Improving the ability to anticipate, withstand, and recover Vulnerability identification Communication resiliency evaluation Risk-based approach appropriate to the critical nature of MISO's technology and security Market Roadmap for an evolving portfolio (e.g. ramp product for short-term fluctuations in energy requirements) Improved scarcity pricing and emergency pricing Enhancements to market-tomarket and coordinated transaction scheduling Mature identification, protection, detection and response capabilities Focus on resiliency and recovery agility Collaborate to strengthen security and raise vigilance with our employees, members, and governmental entities Industry event participation (GridEXIV) Market System Enhancement Developing architectural standards with innate resilience Market Roadmap - Multiday Unit Commitment, Combined Cycle Modeling, Short-term Capacity Reserves, Stored Energy Long-term planning for robustness across multiple future scenarios, incorporating uncertainty Evaluating system robustness through a Renewable Integration Impact Assessment Increasing stakeholder awareness of impact of low frequency / high impact events Defining planning resiliency metrics and their associated values based upon impact analysis and stakeholder input Enhanced planning to address reliable portfolio evolution Enhanced planning to incorporate resiliency metrics Improved situational awareness with disaster preparedness and operating guides Improved Gas-Electric Coordination (including winterization guidelines) Drills - cyber-attacks, control room evacuation, system failure, seasonal readiness, restoration plans, Load Modifying Resource (LMR) and Emergency Demand Response (EDR) Implement alternatives for balancing during extended outages Resource Availability and Need (including Fuel Assurance) Stakeholder training simulator expansion for extreme events (Loss of multiple units, islanding) Advances in parallel flow visualization ` MISO 17cv01906 Sierra Club v. EPA 5 ED_001523_00006051-00005 MISO's generation portfolio changed significantly in the past decade, and MISO is planning for several different future scenarios MISO Generation Portfolio Evolution 2005 2% 2016 COAL GAS HYDRO NUCLEAR S OTHER RENEWABLES 2031 Future Scenarios Existing Fleet No carbon regulations modeled but some reductions expected due to RPS and economics. Policy Regulation Carbon regulations targeting a 25" > reduction across all aggregated unit outputs arc enacted. Accelerated Technology Increase in carbon emissions results in carbon regulations targeting a 35% reduction across all aggregated unit outputs to be enacted. (5 17cv01906 Sierra Club v. EPA ` j MISO ED_001523_00006051-00006 MISO's markets changed alongside the generation portfolio to incentivize units capable of supporting resilience and reliability in diverse ways Ramp Product May 2016 Provides transparent price signals to help manage ramp constraints that could lead to short-term reserve scarcity events Extended Locational Marginal Pricing Phase II May 2017 Expands the criteria of online fast-start resources from 100 minutes start-up/notification to 60 minutes Scarcity Pricing Signals market that MISO is anticipating shortage while procuring the product at an administratively determined price Emergency Pricing Phase II ............J..u..l..2..0..1..7............... Off-line fast start resources amortized over minimum run time Available Maximum Emergency units allowed to move down below their Economic Minimum limits 17cv01906 Sierra Club v. EPA MISO ED_001523_00006051-00007 MISO continues to work with stakeholders to develop market enhancements that properly value both new and legacy resources The Market System Enhancement program will develop and implement the necessary strategic investments in our market systems to allow us to meet the evolving needs of our customers in the future. This project will explore potential improvements in economic scheduling over a longer time horizon than MISO's current Day-Ahead Market. This project provides a mechanism to allow combined cycle generator to offer in more than one unit configuration, along with associated costs, on an hourly basis--allowing for the hourly selection of the most economical configuration. This project explores options that ensure short-term capacity availability to address local and system-wide requirements. Multiple Market Road Map projects would address storage aggregation, and new storage resources. 17cv01906 Sierra Club v. EPA ` MISO ED_001523_00006051-00008 Conclusion MISO's markets achieve economic efficiency, while supporting reliable operations MISO is accelerating planned market efforts to improve resilience and address resource portfolio evolution Current and planned market enhancements position MISO to continue to support reliable, resilient operations 9 17cv01906 Sierra Club v. EPA ` j MISO ED_001523_00006051-00009 17cv01906 Sierra Club v. EPA ED_O01523_00006051 -00010