Credit Requirements

MISO ensures the financial integrity and liquidity of the MISO markets through its credit policyAttachment L to the Tariff. Entities applying to become a transmission customer or 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 transactionslike 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 Participation Credit Requirements

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 Disclosure (due by April 30 of each year)
  • Initial Credit Requirements Worksheet (new Market Participants only)

Find additional guidance for satisfying the minimum requirements for participation.

Corporate Guaranties and Financial Security

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. 

Find Exhibits I-VIII in the document navigator below. 

Submit Applications and/or recertification documents

Officer signed Annual Certification and/or financial statements may be submitted in PDF to Credit & Risk Management or via mail to:

Shipping Address

MISO Credit
720 City Center Drive
Carmel, IN 46032

Market Participants wishing to participate in FTR auctions, Planning Resource Auctions (PRA), and/or virtual trading must allocate a portion of their credit limit to these activities. You can allocate credit to FTR Auctions, PRA, and virtual trading through the Help Center. You may commence trading activities upon allocation approval.  

Requested allocations that cause an MP’s Total Potential Exposure to equal or exceed its Total Credit Limit will be rejected.

Read the Help Center Guide to Submit Credit Cases to learn more about setting FTR auction, allocations and virtual MWh limits.

We work closely with our Market Participants to ensure the financial stability of our FTR Market. We use the following components to determine FTR portfolio residual value:

  1. Transmission congestion Locational Marginal Price component of the Source and Sink Commercial Pricing Nodes
  2. Marginal Congestion Cost (MCC) values, calculated at the 50th and 75th Percentiles

The calculation methodology is outlined in section V.B.4 of Attachment L of the MISO Tariff

View MCC Values in the navigator below. 

Credit Documents