Unbiased Expectations in the MISO Energy Market

Authors

  • Kevin Jones University of Houston-Downtown, Houston, Texas, USA.

DOI:

https://doi.org/10.32479/ijeep.23326

Keywords:

Electricity Derivatives, Midcontinent Independent System Operator, Unbiased Expectations Hypothesis, Forward Premiums

Abstract

This study examines the relationship between spot and forward prices in the Midcontinent Independent System Operator (MISO) wholesale electricity market.  I extend existing literature by employing rolling windows and recursive regressions to test to the risk-adjusted unbiased forward rate hypothesis on the MISO exchange.  Although risk premiums and downward biased forward prices do exist, I find overall support for the risk-adjusted unbiased forward rate hypothesis.  This result differs from previous research on the MISO exchange and may be explained by several factors, including an increase in the number of market participants and production capacity in recent years.    

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Published

2026-05-04

How to Cite

Jones, K. (2026). Unbiased Expectations in the MISO Energy Market. International Journal of Energy Economics and Policy, 16(3), 33–38. https://doi.org/10.32479/ijeep.23326

Issue

Vol. 16 No. 3 (2026)

Section

Articles

License

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