Independent System Operator

An Independent System Operator (ISO) is an organization formed at the direction or recommendation of the Federal Energy Regulatory Commission (FERC). In the areas where an ISO is established, it coordinates, controls and monitors the operation of the electrical power system, usually within a single US State, but sometimes encompassing multiple states.

Similar to an ISO is a Regional Transmission Operator (RTO), 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 States 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 Mexican utility and several Canadian 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 marketplace in wholesale power, especially since the electricity market deregulation of the late 1990s. Most are set up as nonprofit corporations 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) 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)
* California ISO (CAISO)
* Electric Reliability Council of Texas (ERCOT), also a Regional Reliability Council
* Florida Reliability Coordinating Council (FRCC), also a Regional Reliability Council
* Independent Electricity System Operator (IESO), operates the Hydro One transmission grid for Ontario, Canada
* ISO New England (ISO-NE)
* New York ISO (NYISO)

There are currently four RTO's operating in North America:
* Midwest Independent Transmission System Operator (MISO),an RTO despite the ISO in its name
* ISO New England Inc. (ISO-NE), an RTO despite the ISO in its name
* PJM Interconnection LLC (PJM)
* Southwest Power Pool (SPP), also a Regional Reliability Council

See also

* United States energy

External links

* [http://www.ferc.gov http://www.ferc.gov]
* [http://www.iso-ne.com ISO New England Inc.]
* [http://www.iso-ne.com/sys_ops/mornrpt/index.html ISO-NE Morning Report] Daily Capacity Analysis predictions
* [http://www.pjm.com PJM Interconnection - Regional Transmission Organization]
* [http://www.caiso.com California Independent System Operator]
* [http://www.nyiso.com New York Independent System Operator]
* [http://www.ieso.ca Ontario's Independent Electricity System Operator]
* [http://www.midwestiso.org Midwest ISO]
* [http://www.aeso.ca Alberta Electric System Operator]
* [http://www.kpx.or.kr/ Korea Power Exchange]