U.S. Energy Law: Electricity
The focus of this guide is the federal regulation of electricity.
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About Independent System Operators (ISOs)
Independent System Operators (ISOs) grew out of:
- FERC Order No. 888
- FERC Order No. 889
where the Commission suggested the concept of an Independent System Operator as one way for existing tight power pools to satisfy the requirement of providing non-discriminatory access to transmission.
Source: FERC: RTOs and ISOs
About Regional Transmission Organizations (RTOs)
In FERC Order No. 2000 the Federal Energy Regulatory Commission encouraged the voluntary formation of Regional Transmission Organizations (RTOs) to administer the transmission grid on a regional basis throughout North America (including Canada).
Order No. 2000 delineated twelve characteristics and functions that an entity must satisfy in order to become a Regional Transmission Organization.
Source: FERC: RTOs and ISOs
ISO/RTO Regions
- California ISO (CAISO)
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The ISO manages the flow of electricity across the high-voltage, long-distance power lines that make up 80 percent of California’s and a small part of Nevada’s grid. - Electric Reliability Council of Texas (ERCOT)
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The transmission grid that the ERCOT independent system operator administers is located solely within the state of Texas and is not synchronously interconnected to the rest of the United States. - Southwest Power Pool (SPP)
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Serves all or parts of 14 states: Arkansas, Iowa, Kansas, Louisiana, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming. - Midcontinent Independent System Operator (MISO)
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Serves much of the U.S. Midwest and Manitoba, Canada. - PJM
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Coordinates the movement of wholesale electricity in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. - New York Independent System Operator (NYISO)
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Responsible for managing New York’s electric grid and its competitive wholesale electric marketplace. - New England ISO (ISO-NE)
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An independent, not-for-profit company managing electricity markets for the region covering Connecticut, Rhode Island, Massachusetts, Vermont, New Hampshire, and most of Maine.
