FERC approves tougher MISO penalties for nonperforming demand-side resources

Utility Dive · Ethan Howland · 2026-10-28 09:42 UTC

Two Federal Energy Regulatory Commission members urged parties to monitor the rules in case they drive well-performing demand response and behind-the-meter resources out of the Midcontinent grid operator’s market.

Dive Brief:

- Demand-side resources in the Midcontinent Independent System Operator’s market face tougher non-performance penalties under a proposal the Federal Energy Regulatory Commission largely accepted on Friday.

- The new penalty framework, set to take effect on June 1, will apply to Load Modifying Resources, which are demand response and behind-the-meter generation assets that receive capacity payments for agreeing to respond to MISO orders during grid emergencies. The new penalty structure caps a series of FERC-approved changes to MISO’s rules in the wake of several enforcement cases involving the grid operator’s demand response program, according to MISO.

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