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Industry Restructuring and the Competiti... > Independent System Operators and Reg... - Pg. 54

54 CHAPTER | 3 U.S. Electric Markets, Structure, and Regulations Independent System Operators and Regional Transmission Organizations The FERC proposed the creation of ISOs in 1996 in response to the Energy Pol- icy Act of 1992. FERC's Order 888 in 1996 provided for the creation of ISOs to consolidate and manage the operation of transmission facilities to provide non- discriminatory open transmission service for all generators and transmission customers. FERC Order 2000 supported the role of RTOs to oversee electric transmission and operate wholesale markets across a broad territory (multi- states). More recently, FERC Order 1000 closed some of the gaps in FERC Order 890, which is discussed in more detail later. Both ISOs and RTOs are independent entities, not affiliated with other market players, and the functions of each include day-to-day grid operations, long-term regional planning, billing and settlements, and other wholesale electric market services. ISOs tend to be smaller in geographic size and some are not subject to FERC jurisdiction (e.g., Canada and central Texas). There are 10 ISO/RTOs in North America serving two-thirds of electricity consumers in the United States and more than 50% in Canada and include the following (see also Figure 3.3): Alberta Electric System Operator (AESO, an ISO)