2011-10-20T13:21:08-05:00 2010-12-31 ERNST & YOUNG US LLP 111 MONUMENT CIRCLE SUITE 2600 INDIANAPOLIS IN 46204 990 2010-01-01 431827033 Midwest Independent Transmission System Operator Inc MIDW 3172495400 PO BOX 4202 CARMEL IN 46082 Josephine Biggers 3172495400 2011-10-19 3176817000 2010 2016-03-07 17:11:31Z John Bear PO Box 4202 Carmel IN 46082 328302225 false X www.misoenergy.org X 1998 DE Monitor and control electric transmission system to provide non-discriminatory open-access to all customers and ensure safe, reliable, and efficient operation for the benefit of all. 8 7 882 0 0 0 1467515 2355959 308885964 317363482 2054882 834643 0 0 312408361 320554084 0 0 0 0 105193549 108008445 0 0 0 207388442 212545639 312581991 320554084 -173630 0 643829892 807880110 643829892 807880110 0 X MONITOR AND CONTROL AN ELECTRIC TRANSMISSION SYSTEM THAT PROVIDES ALL CUSTOMERS WITH OPEN ACCESS TO THE SYSTEM WITHOUT DISCRIMINATION AND ENSURE SAFE, RELIABLE, AND EFFICIENT OPERATION FOR THE BENEFIT OF ALL CUSTOMERS. false false 525990 260562585 317363482 On December 19, 2001, the Midwest Independent Transmission System Operator, Inc. (MISO or the Company) became the nation's first Regional Transmission Organization (RTO) approved by the Federal Energy Regulatory Commission (the FERC). As an RTO, MISO provides transmission service on behalf of its members who own transmission assets. In addition, MISO is a North American Electric Reliability Corporation (NERC) certified reliability coordinator. In that capacity, MISO monitors the flow of electricity over the transmission systems of its members who own transmission assets. MISO was incorporated as a Delaware nonstock, nonprofit corporation in March 1998. The Company is governed by an independent Board of Directors. Membership in MISO is open to owners of electric transmission facilities as well as other participants in the electric energy market. Thirty transmission owners with more than 93,600 miles of transmission lines, 130,000 megawatts of electric generation, and approximately $14.4 billion in installed gross transmission assets are currently participating in MISO. On December 15, 2001, the Company began providing reliability coordination services to the transmission-owning members of MISO and their customers. On the same date, MISO also began providing operations planning, generation interconnection, maintenance coordination, long-term regional planning, market monitoring, and dispute resolution services. The Company commenced substantially all operations on February 1, 2002, the date MISO began providing regional transmission service under its FERC-accepted Open Access Transmission and Energy Markets Tariff (the Tariff). On April 1, 2005, MISO formally began operating its market-based, congestion management system which features the following: o Day-Ahead energy market o Real-Time energy market o Financial Transmission Rights (FTR) market The day-ahead and real-time energy markets are designed to reliably make the most efficient use of all generation and transmission resources within the region based on bids and offers submitted by Market Participants. The day-ahead and real-time energy markets price transmission system congestion through the use of Locational Marginal Pricing (LMP) algorithms. FTRs provide a means of hedging LMP-based congestion costs. On January 6, 2009, MISO began operating a market for ancillary services. The ancillary services market integrates the procurement and use of regulation and contingency reserves with the existing real-time energy market. MISO also became an NERC-certified Balancing authority on January 6, 2009. 260562585 false false false false false false false false false true false false true true false true false false false false false false false false false false false false false true false false false false false false false false false false false false false false false false false true 148 0 true 882 true false false false false false false X 8 7 false false false false true true false true true false false true true true true true true true true false DC IN X X JOSEPHINE BIGGERS 3172495400 PO BOX 4202 CARMEL IN 46082 Paul J Feldman 6.0 X 147750 0 15000 J Michael Evans 6.0 X 144000 0 15000 Michael J Curran 6.0 X 135000 0 15000 Judy Walsh 6.0 X 131000 0 15000 Baljit Dail 6.0 X 117750 0 15000 Shelley A Longmuir 6.0 X 130500 0 15000 Eugene Zeltman 6.0 X 136500 0 15000 John R Bear 40.0 X X 1081896 0 222072 Josephine A Biggers 40.0 X 354068 0 62261 Richard L Doying 40.0 X 506333 0 98754 Michael P Holstein 40.0 X 523512 0 93314 Bryan Kearney 40.0 X 405339 0 79145 Stephen G Kozey 40.0 X 608242 0 128594 Clair J Moeller 40.0 X 556919 0 100565 William C Phillips 40.0 X 566692 0 89162 Greg Powell 40.0 X 270169 0 64827 Joseph Gardner 40.0 X 266162 0 29321 Todd Hillman 40.0 X 281278 0 35266 Todd Ramey 40.0 X 274243 0 34429 Richard Schug 40.0 X 261473 0 39662 Lori Spence 40.0 X 263629 0 36919 David W Hadley 0.0 X 301546 0 54248 Roger C Harszy 0.0 X 590585 0 106805 8054586 0 1380344 284 true true false DUANE MORRIS LLP 30 South 17th Street PHILADELPHIA PA 191034196 Legal services 4635096 POTOMAC ECONOMICS 9990 Fairfax Blvd FAIRFAX VA 22030 Market Research 3270729 UTILICAST PO Box 38 KIRKLAND WA 98083 PROF CONSULTING 2723890 UTILITY INTEGRATION 24 Benthill Ct LAFAYETTE CA 94549 SOFTWARE INTEGRATION 1806980 KLINGSTUBBINS INC 2301 Chestnut St PHILADELPHIA PA 19103 ARCHITECTURAL SERV. 1543480 87 2355959 2355959 Cost Recovery Adder 525990 261876532 261876532 FERC Assessment 525990 40517787 40517787 OTHER TARIFF SERVICES 525990 1620376 1620376 CONTRACT REVENUE 525990 2457858 2457858 ENGINEERING STUDIES 525990 10008979 10008979 881950 881950 317363482 935695 935695 0 0 7647090 7748141 -101051 -101052 -101052 0 0 0 0 320554084 317363482 834643 0 0 0 0 6859362 2402907 4456455 1053184 697390 355794 78766973 64396659 14370314 5695310 4890958 804352 9853175 8032155 1821020 5780441 4874662 905779 98854 98854 8148981 8148981 198480 198480 0 0 0 28465230 20732213 7733017 74380 74380 1209376 952727 256649 18646605 18463247 183358 0 8742099 6886886 1855213 3387639 1763935 1623704 1446 1446 309661 157425 152236 17005596 13396737 3608859 0 74435817 64422238 10013579 1768295 284709 1483586 FERC Assessment 40517787 40517787 Property Taxes 1428219 1428219 Telecommunications 5640941 4443843 1197098 ALL OTHER EXPENSES 2466233 1817888 648345 320554084 260562585 59991499 0 190993 1936186 363074489 573043526 30244438 25002872 9647245 9305920 463356680 329824270 161019449 133532410 79653278 65059196 643829892 807880110 99141331 122516759 40010078 32035845 1269138 1115891 227351108 295240302 276058237 356971313 643829892 807880110 X 0 0 0 0 643829892 807880110 0 0 X false true true X true true 2157662 2157662 17739255 8050957 9688298 23314574 16274737 7039837 414233585 301405491 112828094 5911604 4093085 1818519 133532410 PROJECT DEVELOPMENT COSTS 27619917 DEFERRED REGULATORY ASSET 37437057 EMPLOYEE RECIEVABLES 2223 65059197 0 RESTRICTED DEPOSITS 331998020 CAPITALIZED LEASE OBLIGATION 11288600 MARKET PARTICIPANT LIABILITY 13684693 356971313 320554084 320554084 -158636 158636 320655136 320655136 -101052 -101052 320554084 320655136 101052 101052 320554084 320554084 SUPPLEMENTAL INFORMATION SCHEDULE D RECONCILIATION OF CHANGE IN NET ASSETS FROM 990 TO AFS FORM 990, SCHEDULE D, PART XI LOSS ON PENSION $(158,636) RECONCILIATION OF REVENUE FORM 990, SCHEDULE D, PART XII LOSS ON DISPOSITION OF ASSETS -$101,052 RECONCILIATON OF EXPENSES FORM 990, SCHEDULE D, PART XIII LOSS ON DISPOSITION OF ASSETS $101,052 X X X true true X X X X X false true false false false false false false false Paul J Feldman 147750 0 0 0 0 0 15000 0 0 0 162750 0 0 0 J Michael Evans 144000 0 0 0 0 0 15000 0 0 0 159000 0 0 0 Eugene Zeltman 136500 0 0 0 0 0 15000 0 0 0 151500 0 0 0 John R Bear 530854 0 486045 0 64997 0 209067 0 13005 0 1303968 0 34432 0 Josephine A Biggers 217650 0 125342 0 11076 0 49953 0 12308 0 416329 0 3308 0 Richard L Doying 284086 0 197758 0 24489 0 79029 0 19725 0 605087 0 4138 0 Michael P Holstein 283967 0 207728 0 31817 0 78723 0 14591 0 616826 0 11465 0 Bryan Kearney 267650 0 122511 0 15178 0 59186 0 19959 0 484484 0 0 0 Stephen G Kozey 346201 0 239558 0 22483 0 108694 0 19900 0 736836 0 15709 0 Clair J Moeller 309416 0 212571 0 34932 0 80774 0 19790 0 657483 0 22811 0 William C Phillips 271589 0 166687 0 128416 0 74308 0 14854 0 655854 0 112901 0 Greg Powell 225250 0 15840 0 29079 0 45553 0 19274 0 334996 0 0 0 Joseph Gardner 195992 0 69217 0 953 0 14931 0 14390 0 295483 0 0 0 Todd Hillman 198638 0 82219 0 421 0 15801 0 19465 0 316544 0 0 0 Todd Ramey 195116 0 78710 0 417 0 14975 0 19454 0 308672 0 0 0 Richard Schug 189366 0 71499 0 608 0 20612 0 19050 0 301135 0 0 0 Lori Spence 187747 0 75274 0 608 0 18146 0 18773 0 300548 0 0 0 David W Hadley 157035 0 121290 0 23221 0 43965 0 10283 0 355794 0 0 0 Roger C Harszy 328956 0 205632 0 55997 0 92011 0 14794 0 697390 0 45842 0 SUPPLEMENTAL COMPENSATION INFORMATION FORM 990, SCHEDULE J, PART I, LINE 1A THE MIDWEST ISO PROVIDED CHARTER TRAVEL DURING 2010. A COST-BENEFIT ANALYSIS AS WELL AS NON-QUANTITATIVE FACTORS WERE CONSIDERED EACH INSTANCE CHARTER TRAVEL WAS USED. TRAVEL FOR COMPANIONS WAS PROVIDED FOR BUSINESS PURPOSES. TAXABLE DISCRETIONARY SPENDING ACCOUNTS WERE ALSO PROVIDED TO OFFICERS FOR HOME OFFICE ITEMS, LIFE INSURANCE, UNREIMBURSED MEDICAL EXPENSES AND OTHER ELIGIBLE EXPENSES. NON-QUALIFIED DEFERRED COMPENSATION PLAN FORM 990, SCHEDULE J, PART I, LINE 4B PAUL J FELDMAN $ 15,000 J MICHAEL EVANS $ 15,000 MICHAEL J CURRAN $ 15,000 JUDY WALSH $ 15,000 BALJIT DAIL $ 15,000 SHELLEY A LONGMUIR $ 15,000 EUGENE ZELTMANN $ 15,000 SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN SECTION 457(F) FORM 990, SCHEDULE J, PART I, LINE 4B BEAR, JOHN R. 143,373 BIGGERS, JOSEPHINE A. 25,894 DOYING, RICHARD L. 44,088 HADLEY, DAVID W. 25,566 HARSZY, ROGER C. 56,406 HOLSTEIN, MICHAEL P. 44,597 KEARNEY, A. BRYAN 33,976 KOZEY, STEPHEN G. 68,536 MOELLER, CLAIR J. 47,383 PHILLIPS, WILLIAM C. 46,763 POWELL, GREGORY L 24,974 SCHEDULE O SUPPLEMENTAL INFORMATION DESCRIPTION OF CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, QUESTION 6 A MEMBER CAN BE A REPRESENTATIVE OF ONE ENTITY OR MAY BE A SINGLE MEMBERSHIP REPRESENTING SEVERAL ENTITIES THAT SHARE A MEMBERSHIP AND HOLD A SINGLE VOTE. APPLICANTS MAY JOIN ONE OF NINE SECTORS: TRANSMISSION OWNER; INDEPENDENT POWER PRODUCERS AND EXEMPT WHOLESALE GENERATORS; POWER MARKETERS AND BROKERS; MUNICIPALS, COOPERATIVES, AND TRANSMISSION DEPENDENT UTILITIES; PUBLIC CONSUMER ADVOCATES; STATE REGULATORY AUTHORITIES; ENVIRONMENTAL/OTHER ADVOCATES; ELIGIBLE END USE CUSTOMERS; OR COORDINATING MEMBERS. DESCRIPTION OF CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS FORM 990, PART VI, QUESTION 7A ARTICLE TWO, SECTION V(B)(5) OF THE TRANSMISSION OWNERS AGREEMENT SETS OUT THE VOTING RIGHTS OF ALL MEMBERS OF THE MIDWEST ISO. MEMBERS ARE DEFINED IN THE TRANSMISSION OWNERS AGREEMENT AS A "PERSON OR BUSINESS ENTITY WHICH IS (I) AN ELIGIBLE CUSTOMER, AS DEFINED IN THE TARIFF, OR (II) AN OWNER, AS DEFINED HEREIN, AND WHICH PAYS TO THE MIDWEST ISO, THE NON-REFUNDABLE MEMBERSHIP FEES AS REQUIRED HEREIN. DESCRIBE PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW 990 FORM 990, PART VI, QUESTION 11B THE TREASURER & CONTROLLER, CFO, PRESIDENT & CEO, AND LEGAL DEPARTMENT COMPLETE THE INITIAL REVIEW. THE BOARD OF DIRECTORS ARE THEN PRESENTED WITH COPIES AND ARE GIVEN THE OPPORTINITY TO ASK QUESTIONS AND COMMENTS TO THE EXECUTIVE TEAM. DESCRIPTION OF PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST FORM 990, PART VI, QUESTION 12C THIS POLICY IS IN THE EMPLOYEE HANDBOOK. THE HANDBOOK IS REVIEWED AT NEW HIRE ORIENTATION. ALL NEW HIRES SIGN AN EMPLOYEE HANDBOOK RECEIPT THAT THEY HAVE READ AND UNDERSTAND THE HANDBOOK. THE EMPLOYEE HANDBOOK IS PART OF THE ANNUAL RECERTIFICATION. EACH EMPLOYEE MUST CERTIFY THAT HE/SHE HAS REVIEWED AND AGREES TO COMPLY WITH THE MIDWEST ISO POLICIES. IN ADDITION, EACH EMPLOYEE, OFFICER, AND DIRECTOR ANNUALLY RECERTIFIES THAT THEY ARE COMPLIANT WITH THE EMPLOYEE HANDBOOK AND ITS CONFLICTS OF INTEREST PROVISIONS. OFFICES & POSITIONS FOR WHICH PROCESS WAS USED, & YEAR PROCESS WAS BEGUN FORM 990, PART VI, QUESTION 15A AND 15B THE BOARD RETAINS THE SERVICE OF EXPERT OUTSIDE EXECUTIVE COMPENSATION CONSULTANTS ("THE CONSULTANTS") IN THE REVIEW OF OFFICER COMPENSATION. ANNUALLY, THE CONSULTANTS PERFORM A FULL AND INDEPENDENT STUDY OF ALL OFFICER DIRECT COMPENSATION (BASE PLUS INCENTIVES). THE CONSULTANTS CONSIDER THE LEVEL OF COMPENSATION RELATIVE TO THE DUTIES PERFORMED; THE CURRENT COMPETITIVE MARKET FOR SIMILAR SKILLS, KNOWLEDGE, AND RESPONSIBILITY; AND OTHER STRATEGIC NEEDS IDENTIFIED BY THE BOARD OF DIRECTORS. THE CONSULTANTS PREPARE AND DELIVER A FULL DETAILED REPORT TO THE HUMAN RESOURCES COMMITTEE OF THE BOARD ("HRC") FOR EACH OFFICER POSITION. THIS REPORT INCLUDES RECOMMENDATIONS FOR DIRECT COMPENSATION CHANGES. THE HRC COMBINES THE RECOMMENDATIONS OF THE CONSULTANTS WITH EVALUATIONS OF OFFICER PERFORMANCE TO RECOMMEND APPROPRIATE COMPENSATION LEVELS TO THE BOARD OF DIRECTORS FOR APPROVAL. EVERY TWO YEARS THE CONSULTANT PREPARES A LETTER OF "REASONABLENESS" OF THE TOTAL REMUNERATION PACKAGE FOR OFFICERS OF THE COMPANY. THIS LETTER IS CONSISTENT WITH THE GUIDELINES OF SECTION 4958 OF THE INTERNAL REVENUE CODE. THIS LETTER CERTIFIES THAT IN THE "REASONED OPINION" OF THE CONSULTANT AS AN "INDEPENDENT EVALUATION EXPERT" THE COMPENSATION AND BENEFITS PROVIDED TO THE OFFICERS REPRESENT "REASONABLE COMPENSATION." THE HRC REVIEWS ALL METRICS, RESULTS, AND ACTUAL INCENTIVES FROM MIDWEST ISO ANNUAL AND LONG-TERM INCENTIVE PLANS. NO INCENTIVES ARE PAID UNTIL RECOMMENDED BY THE HRC AND APPROVED BY THE BOARD. THE HRC REVIEWS AND RECOMMENDS ANY NEW OR MODIFIED EMPLOYMENT CONTRACTS WITH OFFICERS, INCLUDING RETENTION AGREEMENTS WHICH THEN MUST BE APPROVED BY THE BOARD. FROM TIME TO TIME, THE HRC WILL RETAIN THE SERVICES OF OUTSIDE EXPERTS TO EVALUATE AND MAKE RECOMMENDATIONS TO THE LEVEL AND TYPE OF SPECIFIC COMPENSATION AND BENEFIT ITEMS. THE HRC ROUTINELY REPORTS TO AND, IF REQUIRED, OBTAINS APPROVAL FROM THE FULL BOARD ON THESE MATTERS. AVAIL OF GOV DOCS, CONFLICT OF INTEREST POLICY, & FIN STMTS TO GEN PUBLIC FORM 990, PART VI, QUESTION 19 THE MIDWEST ISO'S GOVERNING DOCUMENTS CAN BE FOUND ON OUR WEBSITE UNDER "LIBRARY" TAB. THESE DOCUMENTS ARE THE TARIFF AND THE TRANSMISSION OWNERS AGREEMENT WHICH INCLUDES THE COMPANY'S STANDARDS OF CONDUCT (APPENDIX A) AND THE COMPANY'S BYLAWS (APPENDIX F). THESE DOCUMENTS ARE ALSO FILED WITH AND AVAILABLE ON THE FEDERAL ENGERGY REGULATORY COMMISSION'S WEBSITE AT WWW.FERC.GOV IN THE ELIBRARY. THE FINANCIAL STATEMENTS OF THE MIDWEST ISO ARE CONTAINED IN THE COMPANY'S ANNUAL REPORT WHICH IS ALSO LOCATED ON OUR WEBSITE AT WWW.MISOENERGY.ORG.