As of October 23, 2026, the Federal Energy Regulatory Commission (FERC) largely accepted a proposal for stricter non-performance penalties on demand-side resources in the Midcontinent Independent System Operator’s (MISO) market. The new framework will take effect by June 1 2027, and will apply to Load Modifying Resources (LMR), which are demand response and behind-the-meter generation assets that receive capacity payments for agreeing to respond to MISO orders during grid emergencies. [1] This new framework is the latest in a series of FERC-approved changes to MISO’s rules in the wake of several enforcement cases involving the grid operator’s demand response program. The changes intend to discourage underperformance and fraudulent participation, especially since LMRs accounted for about 9.4% of MISO’s planning resources in the summer season. FERC commissioners Judy Chang and David Rosner cautioned that excessive penalties could discourage otherwise reliable demand-side resources from participating, potentially causing the cost of maintaining resource adequacy to increase.

[1] https://elibrary.ferc.gov/eLibrary/filelist?_sp=92451edb-066e-47f9-8b61-5b5595943270.1793386416581&accession_number=20261023-3123&optimized=false&sid=2a7edb19-87d5-49d0-be1c-247bb70048c0