The ISO is one of ten grid operators — Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) — in North America. Our regulator, the Federal Energy Commission (FERC), created us as an ISO in 1997. While “ISO” remains part of our name, FERC designated us an RTO in 2005. ISOs and RTOs share many core principles and functions in operating regional grids, running wholesale markets, and power system planning. As described in FERC Order No. 200, one of the main differences in operating as an RTO is that ISO New England has broader authority over the operation of the transmission system.
FERC’s mandated and approved rules are detailed in the ISO New England Inc. Transmission, Markets, and Services Tariff (the ISO tariff), which provides the rates, terms, and conditions for transmission, market, and other services provided by the ISO. In conjunction with the ISO’s Transmission Operating Agreements, the ISO tariff helps satisfy FERC requirements for the ISO’s functioning as an RTO.
New England’s power grid is part of a larger electric power system.
While having a large, interconnected network helps maintain highly reliable electric service, this tight interconnectedness requires careful regulation, planning, and monitoring to prevent problems that may occur in one area from cascading to another. In addition to adhering to FERC requirements, the ISO abides by strict rules, standards, and requirements established for maintaining power system reliability set by other organizations.
Our independence from entities doing business in New England’s electricity industry is what allows us to create a level playing field for market participants, and to make objective decisions for the good of the region regarding system operations, regional system planning, and wholesale market administration. However, ISO New England does work collaboratively with numerous stakeholders representing a wide variety of constituencies, technologies, and interests to put together comprehensive rules, policies, and solutions that yield the best possible results for the region.
Visit our Corporate Governance page to learn about oversight, decision-making and stakeholder relationships at ISO New England.
