ISO RTO
From Wikipedia, the free encyclopedia
In North America, an
ISO is an Independent System Operator and an
RTO
is a Regional Transmission Organization. The two are similar with an
RTO being more clearly defined and born out of the concept of electrical
grid reliability. The delineation between an ISO and an RTO is subtle
to some and quite specific to others as the similarities in the table
below illustrate:
Various definitions from web-based glossaries
| ISO |
RTO |
| "...an organization formed at the direction or recommendation of the [FERC]..." |
"...designated by the [FERC] to direct operation of the regional electric transmission grid in its area..." |
| "...a neutral party responsible for the management and control of the electric transmission grid in a state or region..." |
"...coordinates, controls and monitors an electricity
transmission grid that is larger with much higher voltages than the
typical power company's distribution grid..." |
| "...operates an electric-transmission system that it does not own..." |
"...coordinates power generation and transmission within an integrated regional market..." |
| "...an independent, Federally regulated entity..." |
"...an independent governing body..." |
| "...ensure[s] the safety and reliability of the electric system..." |
"...[responsible] for electric transmission grid
operations, short-term electric reliability and transmission services
within a multi-state region..." |
| "...for the purpose of providing open access to retail and wholesale markets for supply..." |
"...serve as the independent operator of the regional electric market..." |
In short, an ISO operates a region's electricity grid, administers
the region's wholesale electricity markets, and provides reliability
planning for the region's bulk electricity system. Today's RTO's do the
same thing with an added component of greater responsibility for the
transmission network as established by the FERC.
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