An
Independent System Operator (ISO) is an organization formed at the direction or recommendation of the
Federal Energy Regulatory Commission (FERC)The Federal Energy Regulatory Commission is the United States federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates...
. In the areas where an ISO is established, it coordinates, controls and monitors the operation of the
electrical powerElectric power transmission is the bulk transfer of electrical energy, a process in the delivery of electricity to consumers. A power transmission network typically connects power plants to multiple substations near a populated area...
system, usually within a single
USThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
State, but sometimes encompassing multiple states.
Similar to an ISO is a
Regional Transmission Operator (RTO)A Regional Transmission Organization in the United States is an organization that is responsible for moving electricity over large interstate areas. Like a Transmission system operator , an RTO coordinates, controls and monitors an electricity transmission grid that is larger with much higher...
, the primary difference being that generally an RTO coordinates, controls and monitors the operation of the electric power transmission system over a wider area that crosses state borders.
Only electric utilities that are located within the
United StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
fall under FERC authority, but a larger organization called the North American Electric Reliability Corporation (NERC) overlays the entire FERC footprint and also includes a
MexicanThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
utility and several
CanadianCanada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean...
utilities.
An
Independent System Operator (ISO) is an organization formed at the direction or recommendation of the
Federal Energy Regulatory Commission (FERC)The Federal Energy Regulatory Commission is the United States federal agency with jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates...
. In the areas where an ISO is established, it coordinates, controls and monitors the operation of the
electrical powerElectric power transmission is the bulk transfer of electrical energy, a process in the delivery of electricity to consumers. A power transmission network typically connects power plants to multiple substations near a populated area...
system, usually within a single
USThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
State, but sometimes encompassing multiple states.
Similar to an ISO is a
Regional Transmission Operator (RTO)A Regional Transmission Organization in the United States is an organization that is responsible for moving electricity over large interstate areas. Like a Transmission system operator , an RTO coordinates, controls and monitors an electricity transmission grid that is larger with much higher...
, the primary difference being that generally an RTO coordinates, controls and monitors the operation of the electric power transmission system over a wider area that crosses state borders.
Only electric utilities that are located within the
United StatesThe United States of America is a federal constitutional republic comprising fifty states and a federal district...
fall under FERC authority, but a larger organization called the North American Electric Reliability Corporation (NERC) overlays the entire FERC footprint and also includes a
MexicanThe United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
utility and several
CanadianCanada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean...
utilities. As such, international reciprocity is commonplace, and rules or recommendations introduced by FERC often are voluntarily accepted by NERC members outside of FERC’s jurisdiction. Therefore, one Canadian Province is a member of a US-based RTO, while two others function as an Electric System Operator (ESO), an organization essentially equal to a US-based ISO.
Some ISO’s and RTO’s also act as a
marketplaceA marketplace is the space, actual or metaphorical, in which a market operates. The term is also used in a trademark law context to denote the actual consumer environment, ie...
in
wholesaleWholesaling, jobbing, or distributing the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services....
power, especially since the
electricity marketIn economic terms, electricity is a commodity capable of being bought, sold and traded. An electricity market is a system for effecting purchases, through bids to buy; sales, through offers to sell; and short-term trades, generally in the form of financial or obligation swaps. Bids and offers use...
deregulationDeregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
of the late 1990s. Most are set up as nonprofit
corporationA corporation is a legal entity separate from the shareholders and employees. In British tradition it is the term designating a body corporate, where it can be either a corporation sole or a corporation aggregate...
s using governance models developed by FERC.
FERC Orders 888 and 889 defined how Independent Power Producers (IPP’s) and power marketers would be allowed fair access to transmission systems, and mandated the implementation of the
Open Access Same-Time Information System (OASIS)The Open Access Same-Time Information System , is an Internet-based system for obtaining services related to electric power transmission in North America. It is the primary means by which high-voltage transmission lines are reserved for moving wholesale quantities of electricity...
to facilitate the fair handling of transactions between electric power transmission suppliers and their customers.
There are currently eight ISO's operating in North America:
- Alberta Electric System Operator (AESO)
The Alberta Electric System Operator, abbreviated AESO, is a not-for-profit entity responsible for the planning and operation of the Alberta Interconnected Electric System in a safe, reliable, and economical manner....
- California ISO (CAISO)
- Electric Reliability Council of Texas (ERCOT), also a Regional Reliability Council
- Independent Electricity System Operator (IESO)
The Independent Electricity System Operator , one of eight Independent System Operators in North America is a Crown corporation responsible for operating the electricity market and directing the operation of the bulk electrical system in the province of Ontario, Canada.The IESO was established in...
, operates the Hydro OneHydro One Incorporated delivers electricity across the Canadian province of Ontario. It is a crown corporation wholly owned by the Government of Ontario....
transmission grid for OntarioOntario is a province located in east-central Canada, the largest by population and second largest, after Quebec, in total area. Ontario is bordered by the Canadian provinces of Manitoba to the west and Quebec to the east, and 5 U.S...
, CanadaCanada is a country occupying most of northern North America, extending from the Atlantic Ocean in the east to the Pacific Ocean in the west and northward into the Arctic Ocean...
- ISO New England
ISO New England Inc. is a non-profit Regional Transmission Organization , serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont...
(ISO-NE)
- New York ISO (NYISO)
There are currently four RTO's operating in North America:
- Midwest Independent Transmission System Operator
The Midwest Independent Transmission System Operator, Inc. is an Independent System Operator and the Regional Transmission Organization that provides open-access transmission service and monitors the high voltage transmission system throughout the Midwest United States and Manitoba, Canada...
(MISO), an RTO despite the ISO in its name
- ISO New England
ISO New England Inc. is a non-profit Regional Transmission Organization , serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont...
Inc. (ISO-NE), an RTO despite the ISO in its name
- PJM Interconnection LLC (PJM)
PJM Interconnection LLC is a Regional Transmission Organization which is part of the Eastern Interconnection grid operating an electric transmission system serving all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee,...
- Southwest Power Pool (SPP)
-History:The Southwest Power Pool is the oldest North American Reliability Organization still in operation. SPP's story began in the early days of WWII, when America was furiously ramping up production of weapons and military supplies. After entering the War, the USA had an immediate and crucial...
, also a Regional Reliability Council
See also
- United States energy
- ISO/RTO
- Transmission system operator
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumersrect 2 243 235 438 Power stationrect 276 317 412 556 Transformer...
(TSO)
- Regional Transmission Organization
A Regional Transmission Organization in the United States is an organization that is responsible for moving electricity over large interstate areas. Like a Transmission system operator , an RTO coordinates, controls and monitors an electricity transmission grid that is larger with much higher...
(RTO)
- European Transmission System Operators
The European Transmission System Operators is an association of Europe's transmission system operators .As of July 2009, the work of ATSOI, BALTSO, ETSO, NORDEL, UCTE and UKTSOA has been fully integrated into ENTSO-E .The association was founded in 1999 in response to the emergence of the Internal...
- Energy law
Energy laws govern the use and taxation of energy, both renewable and non-renewable. These laws are the primary authorities related to energy...
- New York energy law
New York energy law is the statutory and common law of the state of New York concerning the policy, conservation, and utilities involved in energy, along with its regulation and taxation.-Energy Law :...
External links