What is The ISO?

You may hear your Energy Advisor refer to the ISO – Independent System Operator. The ISO is a non-profit organization authorized by the Federal Energy Regulatory Commission (FERC) responsible for managing and operating the electric grid for a specific region.    

At Best Practice Energy we serve various ISOs, including:

ISO-NE – New England

NYISO – New York

PJM – Pennsylvania – New Jersey – Maryland Interconnection. This also includes parts of Delaware, Illinois, Indiana, Kentucky, Maryland, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and Washington, D.C. 

Source: PJM

While each ISO has its own unique processes for determining capacity costs and more, they are mostly similar in their operations.

Grid operation:

Every minute of every day, ISOs coordinate and direct the flow of electricity over the region’s high-voltage transmission system.

Market administration:

Each ISO oversees the energy markets of participants buying and selling wholesale electricity at the most competitive prices.  

Power system planning:

The ISO has the responsibility of performing studies, analyses, and planning to make sure electricity needs are met considering the system of today and into the future.  

Overall, the ISOs in each region protect the health of the economy and well-being of its people by ensuring the constant availability of competitively priced wholesale electricity, today and for future generations.


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