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MidAmerican Energy Co. plans to fully integrate into the Midwest Independent System Operator (Midwest ISO) as a transmission-owning member on Sept. 1.

Midwest ISO currently provides MidAmerican with reliability coordination services. This change allows MidAmerican to access one of the largest markets in the world for buying and selling power and results in MidAmerican turning over functional control of its transmission system to the Midwest ISO.

MidAmerican will also participate in the ancillary services market, which provides greater flexibility in addressing unexpected loss of generation and transmission while increasing overall grid reliability. Midwest ISO's markets' independence allows the most cost-effective and reliable source of generation to be matched with power needs.

"We expect to continue building wind generation to maintain this leadership position," says Bill Fehrman, president of MidAmerican Energy. "Joining the Midwest ISO makes good business sense for our customers, because it provides access to the ancillary services market to support our leadership position in wind generation and helps ensure the company has a wider opportunity to buy and sell electric power."

The addition of MidAmerican incorporates approximately 7,000 MW of generating capability into Midwest ISO's footprint.

MidAmerican will also benefit from Midwest ISO's regional planning efforts that identify the most effective locations and means for upgrades in generation, transmission and equipment and have led to the completion of nearly $1 billion in new infrastructure and improvements.

In addition, Midwest ISO's long-term transmission expansion planning is expected to reduce congestion costs in the region by $2 billion annually. Midwest ISO's independence ensures that transmission system improvement recommendations are made solely to support power reliability and a strong market.

SOURCE: Midwest Independent System Operator

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