MISO ensures the financial integrity and liquidity of the MISO markets through its credit policy, Attachment L to the Tariff. Entities applying to become a transmission customer or a market participant must have an approved credit application and credit limit with MISO. Entities must meet minimum capitalization to receive credit approval. Unsecured credit limits, cash collateral, Letters of Credit and/or Corporate Guaranties are used to cover market and or transmission transactions, like the energy and operating reserve markets. Credit allocations are required for Financial Transmission Rights (FTR) auctions and virtual megawatt limits must be established to participate in virtual trading.
MISO Credit & Risk Management works collaboratively with stakeholders to monitor, seek improvements and adapt to evolving market dynamics.
Market participants must continually meet the minimum participation requirements specified in Section III of MISO's Credit Policy. Refer to the Minimum Participation Requirements guide for additional information.
All documentation supporting these requirements, such as annual forms and financial statements, should be emailed to MISOCredit@misoenergy.org or sent to:
MISO
720 City Center Drive
Carmel, IN 46032
Market Participants must maintain a credit limit that exceeds their potential credit exposure by:
Market Participants can provide financial security in the form of cash collateral or letter of credit. Please note that all FTR exposure must be supported by financial security.
Market Participants can establish an unsecured credit limit, per the criteria in Section II.A. of Attachment L, or via a Corporate Guaranty.
Market Participants wanting to participate in virtual transactions must first set a virtual MWh limit. Market Participants wanting to bid in FTR auctions must allocate a portion of their financial security to the FTR auction.
Market Participants can set either type of allocation directly through MISO’s Help Center.
See the Help Center Guide to Submit Credit Cases for specific instructions.