Our goal is to maintain provisions that effectively mitigate risk of loss to the MISO markets without imposing undue constraints or barriers to individual Market Participants.
Our Credit Policy is designed to ensure the financial integrity and liquidity of the MISO markets. The Credit & Risk Management Department works collaboratively with stakeholders through the Credit Practices Working Group to monitor and seek improvements to Tariff provisions in order to adapt to evolving market dynamics.
MISO Credit Policy
Minimum Requirements for Participation
Market Participants must continually meet the following minimum requirements for participation specified in Section III of MISO's Credit Policy.
- Annual Certification (due five business days before the annual FTR Auction, if participating, or annually by April 30)
- Demonstration of "appropriate person" status per the Commodity Futures Trading Commission (CFTC)
- Demonstration of minimum capitalization
- Satisfaction of eight risk management standards
- Annual Disclose (due by April 30 of each year)
Officer signed Annual Certification and/or financial statements may be submitted in PDF to Credit & Risk Management or via mail to:
PO Box 4202
Carmel, IN 46082-4202
720 City Center Drive
Carmel, IN 46032
Get additional guidance for satisfying the minimum requirements for participation.
New Market Participant Applicants
Organizations wishing to obtain Certified Market Participant status must register via the online registration tool. Upon receipt of your credit application we conduct a thorough review to determine your organization’s ability to meet your financial obligations.
In addition to the credit application found in the online registration tool, applicants must also submit the following document to Credit & Risk Management.
Initial Value of TPE Credit Worksheet
Corporate Guaranties and Financial Security Documents
Existing Market Participants (MPs) and applicants who wish to submit a Corporate Guaranty or Financial Security to support transacting in MISO services may utilize the following documents respective to their desired submittal. Draft documents may be submitted to our Credit & Risk Management Department to review for approval:
Please do not reformat these documents. Contact Credit & Risk Management to request a document in Microsoft Word.
Exhibit I - Corporate Guaranty
Exhibit I - Foreign Guaranty
Exhibit II - Letter of Credit
Exhibit III - Cash Collateral Agreement
Exhibit IV - Security Interest Agreement
Exhibit V - Credit & Security Agreement
Exhibit VI - Annual Certification Form
Exhibit VII - Appropriate Person Verification
Exhibit VIII - Annual Disclosure Form
Market Participants wishing to participate in FTR Auctions, RAR Auctions, and/or virtual trading must allocate a portion of their credit limit to these activities. You can allocate credit to FTR Auctions, RAR Auctions, and Virtual trading through the Market Portal. Allocation approval is required before auction or trading activity can commence.
Requested allocations that cause an MP’s Total Potential Exposure to equal or exceed its Total Credit Limit will be rejected.
Learn more about setting the FTR Auction, Allocations and Virtual MWh Limits.
Credit & Financial Transmission Rights (FTRs)
We work closely with our FTR & Pricing Department to ensure MPs have sufficient credit in place to support FTR and ARR obligations. We use the transmission congestion Locational Marginal Price component of the Source and Sink Commercial Pricing Nodes, Marginal Congestion Cost (MCC) values, calculated at the 50th and 75th Percentiles, to determine FTR Portfolio Residual Value. The calculation methodology is outlined in section V.B.4 of Attachment L.
Learn more about Financial Transmission Rights
Find MCC Values (used to calculate the FTR Portfolio Residual Value)
View the FTR Market Calendar
For more information, please contact Client Relations or send an email to Credit & Risk Management.