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Compliance Alert
MISO • Midwest • DRMar 4, 2026

MISO Mandates Real DR Testing: Mock Drills No Longer Accepted

The Bottom Line (MISO / Midwest C&I)

MISO is tightening the screws on demand response compliance. For the 2026/2027 Planning Resource Auction (offer window March 26-31), all participating DR resources must complete actual performance verification tests—no more hypothetical mock drills. This directly impacts commercial and industrial facilities across 15 Midwest and Southern states that bid curtailment capacity into MISO's market. Participants that cannot demonstrate real load reduction capability risk losing accreditation for the upcoming planning year.

Mar 26-31
PRA Offer Window
2026/2027 auction
Real Tests
Testing Change
Replaces hypothetical mocks
+2 GW
Load Increase
YoY across MISO footprint

Why MISO Ended Mock Testing

The change stems from real-world reliability failures. In prior capacity periods, some demand response resources that passed hypothetical testing scenarios failed to actually deliver their committed megawatt reductions when MISO called real emergency events. This created a phantom capacity problem—the grid operator counted on reductions that never materialized.

Under the new regime, every DR resource participating in the 2026/2027 PRA must demonstrate its load reduction capability through verified, actual performance tests conducted under conditions that mirror real dispatch scenarios.

Commercial Impact

For commercial and industrial facilities using demand response as a revenue stream or cost offset in MISO territory, the compliance bar just rose significantly:

  • Equipment readiness: Automated load shedding systems (BMS controls, generator transfer switches, HVAC cycling) must be proven functional under real conditions, not simulated scenarios.
  • Aggregator accountability: Curtailment Service Providers (CSPs) managing portfolios of DR assets will face tighter scrutiny. Facilities that cannot demonstrate capacity will be removed from bids.
  • Revenue risk: Any facility that fails the real test loses its capacity accreditation for the 2026/2027 planning year (June 2026 - May 2027), forfeiting monthly capacity payments.

Immediate Action Items

  1. Schedule a real curtailment test with your CSP before the March 26 offer window opens.
  2. Verify BMS automation can execute load reduction within the required dispatch timeframe.
  3. Confirm metering and telemetry equipment meets MISO's updated verification standards.
  4. Document baseline load profiles to establish the pre-curtailment benchmark for your facility.

Prepare for the MISO Auction

The offer window opens March 26. Make sure your DR capacity is verified and ready to bid.