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Exploration of DERs MISO serves as the Balancing Authority (balancing generation and load) and the Reliability Coordinator (ensuring reliable operations) for more than 42 million end-use customers. Megatrends such as Decentralization, Digitalization, and Demarginalization detailed in the 2019 MISO Forward Report will re-shape the region's $29.2 billion energy market. With change comes opportunity, and MISO designed a strategy to collaborate with stakeholders to develop, explore, and act on these changes. The MISO footprint has a long and successful track record of providing electricity to homes and businesses via the traditional industry model of central-station power plants, high-voltage transmission lines and local distribution systems. Transformative investment and asset innovation happening across the country impacting distribution grids will have the potential to change how energy flows, and how power markets compensate services which keep the grid stable and reliable. These changes will impact the relationships between energy institutions and will necessitate different ways of working together. This DER Framing Paper outlines MISO's strategy regarding DERs and the associated mega trend of Decentralization. MISO's future steps with DER will involve exploratory conversation and collaboration with stakeholders, as well as attention to how DERs relate to the attributes of availability, flexibility and visibility as identified in the MISO Forward Report. Today’s grid distributes power from generation to the end-customers Bulk Grid Distribution Grid End Users In the future, DERs will require new grid management protocols 2

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