MISO interconnection queue reform proposal seeks FERC approval
MISO proposes accelerating its Definitive Planning Phase-2022 study for 71 GW of legacy projects by raising the penalty-free exit threshold and limiting final restudies, aiming to cut an 18-month delay. The plan has support from utilities and state regulators but faces criticism from some independent power producers.
The Midcontinent Independent System Operator has asked the Federal Energy Regulatory Commission to approve a proposal to speed up its remaining legacy interconnection queue study, which includes about 71 gigawatts of projects. Without the proposed changes, the 'Definitive Planning Phase-2022' interconnection study process will likely be delayed by at least 18 months.
MISO conducts interconnection studies under its three-part Definitive Planning Phase process. The current rules allow nonviable projects to remain in the study process to avoid withdrawal penalties, leading to late withdrawals and restudies that delay the entire queue. The proposal targets the Definitive Planning Phase-2022 cycle and would limit final restudies in the last interconnection study phase to no more than one for all cycles, addressing a system that currently allows for what critics call 'endless' restudies.
Key changes in the proposal: higher exit threshold and limited restudies
The proposal introduces two main changes to accelerate the queue. It increases the penalty-free network upgrade cost threshold from 35% to 50%. It also caps final restudies at one per project in the last study phase.
Currently, a project can drop out of the queue without penalties if MISO finds it faces a 35% network upgrade cost increase. The new plan raises that threshold to 50%. For the 2022 queue cycle, this would allow projects to exit the interconnection queue penalty-free before 'Decision Point II,' which occurs on October 20.
Support from utilities, clean energy advocates, and state regulators
The proposal has received widespread backing from renewable energy developers, utilities, and state utility regulators. Advanced Energy United supported it, citing the severe backlog that has halted progress in processing years-old interconnection requests. The group stated that bold action is needed to achieve MISO’s target of a one-year interconnection cycle and return to reliance on the standard interconnection process.
Utilities Ameren and Alliant Energy urged FERC to approve the proposal in separate filings. Alliant Energy, based in Madison, Wisconsin, stated that consensus on practical solutions should be encouraged to advance reliability and resource adequacy. RWE Americas also supported the proposal but said additional reforms are needed for projects with executed Generation Interconnection Agreements.
The Organization of MISO States, which represents state utility regulators, filed comments at FERC on October 5, 2026, indicating its tentative support. State utility regulators said, "This approach can materially accelerate the processing of legacy queue cycles while preserving MISO’s responsibility to identify and address reliability concerns."
Criticism from independent power producers over process and risk shift
Not all feedback has been positive. Pathway Power, an independent power producer, protested the higher threshold for network upgrade cost increases. The company argued the proposal was crafted by MISO and a limited number of stakeholders-Clearway Energy Group, NextEra Energy Resources, and EDP Renewables-with only a 10-day period for comments.
Pathway Power claimed the plan shifts financial risk to customers remaining in the queue and away from MISO. The company warned this would reduce MISO’s incentive to provide accurate cost estimates. MISO asked FERC to approve the proposal by October 19, 2026.
