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Independent system operator
Article By:
Kafka, Richard Formerly, Pepco Holdings, Inc., West Bethesda, Maryland.
Last reviewed:2013
DOI:https://doi.org/10.1036/1097-8542.YB130179
An independent system operator (ISO) is the transmission operator of, typically, a large-area transmission system owned by more than one transmission owner and financially independent of all owners, producers, buyers, transmitters, loads, and other participants. The purpose is to permit all producers, buyers (loads and intermediaries), and other users to use the transmission system on an equal basis. That is, any generator that wants to connect to the transmission system, whether or not associated with the transmission owner, is treated in the same way. Anyone who wants to schedule use of the transmission system (such as a party that wishes to schedule a flow across a system to be delivered remotely) must be permitted to do so on an equal basis with the loads served by that transmission owner.
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