ISO

Definition

An Independent Systems Operator (ISO) is an organization that manages the operation of a region's bulk power generation and transmission system, ensuring the reliable delivery of electricity and the fair administration of wholesale electricity markets.

Purpose

ISOs ensure the efficient and reliable supply of electricity, balance supply and demand, and facilitate competitive electricity markets to protect the health and economy of the region they serve.

Examples of Use

• Overseeing the day-to-day operations of the electrical grid in New England to maintain reliability.
• Administering wholesale electricity markets to ensure fair competition and pricing.
• Managing regional planning processes to enhance the future reliability and sustainability of the power system.

Related Terms

• Grid Operator: An entity responsible for managing the operation and stability of the electrical grid.
• Wholesale Electricity Market: A marketplace where electricity is bought and sold in large quantities, typically between generators and distributors.
• Electric Grid: A network of transmission lines, substations, and generating facilities that deliver electricity from producers to consumers.

Notes

ISOs play a critical role in maintaining the stability and efficiency of the power supply, addressing challenges such as demand fluctuations and integrating renewable energy sources.