MISO Maximum Generation Event - Power Cost Adjustment

MISO Maximum Generation Event

In the early morning hours of January 24, 2026, the Midcontinent Independent System Operator (MISO), which manages the electric grid spanning from Manitoba, Canada to Louisiana, issued a series of operational alerts to electric generation utilities and market participants.  These alerts indicated significant strain on the electric grid due to extreme cold temperatures, forced shutdowns of generation resources, low wind production, and transmission congestion related to Winter Storm Fern.  As conditions worsened, MISO declared a Maximum Generation Event and issued public appeals for energy conservation to help preserve grid reliability and ensure continued electric service.

During this event, prices for energy in the MISO market reached extreme levels as demand for energy was pushed to its limits.  As a result, Dairyland Power Cooperative (DPC), our wholesale power provider, had to pay nearly $27 million in additional power costs.

To learn more details about this event, visit A Grid Under Pressure.

Understanding Power Cost Adjustments

Due to this unprecedented Maximum Generation Event, the increased power costs incurred by DPC will be passed on to Dairyland's members in the form of a power cost adjustment (PCA).

What is a Power Cost Adjustment?

A PCA is a line item on your electric bill that may appear as either a charge or a credit.  When the cost to generate or purchase power is higher than expected, a PCA charge is applied to recover the additional costs.  When the costs are lower than expected, a PCA credit is applied to pass along those savings to members.

What is the purpose of a PCA?

A PCA helps manage the fluctuating costs to generate or purchase power.  Electricity prices can rise or fall based on market conditions such as weather, fuel availability, and demand.  When the cost of power in our regional market is significantly more or less than anticipated, DPC adjusts our power bill accordingly.  In turn, we pass this charge or credit on to our members.

What can I expect with this PCA?

In recovering costs from this event, DPC is spreading the recovery of these costs over four months to lessen the immediate impact on members.  The average residential member can expect to see a PCA increase of approximately $10 per month on bills issued in March, April, May, and June.