The Role of the ISO/RTO in Today s Electric Grid Robert B. Burke Principal Analyst ISO New England Inc.
Purpose Describe the role of the ISO in today s grid. Where are the ISO/RTOs Deregulation Description of ISO/RTOs Describe how that role will evolve. Smart grid Operating the future grid Regional system planning
ISO/RTO
Deregulation Early 1990s, Congress and FERC began enabling the restructuring of wholesale electric power Believed competition would provide needed renewal, much as it had in transportation, telecommunications and financial services. FERC created a level playing field for competitive markets Ensuring equal access to transmission grids Encouraging states to require utilities to sell off power plants And gradually eliminate regulator-set rates in favor of prices determined by the markets.
What Is An ISO? ISO Independent System Operator Independent System Operators grew out of FERC Orders Nos. 888/889. FERC suggested that an Independent System Operator was one way for existing tight power pools to satisfy the requirement for providing non-discriminatory access to transmission. FERC created ISOs to: Oversee restructuring on a regional basis Be responsibility for ensuring reliability Establish and overseeing competitive wholesale electricity markets
What Is An RTO? RTO Regional Transmission Organization In Order No. 2000, FERC encouraged the voluntary formation of Regional Transmission Organizations Their function is to administer the transmission grid on a regional basis throughout North America (including Canada). Order No. 2000 delineated twelve characteristics and functions that an entity must satisfy in order to become a Regional Transmission Organization. Can operate wholesale markets
Created by FERC in 1997 ISO New England Inc. ISO New England has helped lead the nation's most advanced effort at restructuring to date: Five of the six states have required utilities to sell off their power plants 88 percent of the region's generation is unregulated ISO New England Operates day-ahead & real-time markets Ancillary service markets Manages bulk transmission system Procure capacity to meeting future ICR Schedule generation and transmission outages Develop Regional System Plan
Smart Grid What Does the Future Hold? Plug-in Electric Vehicles (PEV or PHEV) Renewable energy Wind, solar, tidal (?) Distributed generation Fuel cells The Bloom Energy Box: a residential "power plant" about the size of a mini-fridge Synchrophasors Precise grid measurements available from monitors called phasor measurement units (PMUs). PMU measurements are taken at high speed (typically 30 observations per second compared to one every 4 seconds using conventional technology).
Operating Electric Grid with Increased clean renewable resources Environmental regulations, such as the Regional Greenhouse Gas Initiative (RGGI) and Renewable Portfolio Standards (RPSs), encouraging development of these resources in the region Anticipated regional growth in wind plants Studying 10,000 MW of wind Represents approximately 30% of system peak Integrate smart grid technologies into the system
Regional System Planning Assess amount of resources the overall system and individual areas of the system require Types of resources that can satisfy these needs Critical time constraints for addressing these needs Ensure system reliability, facilitate the efficient operation of the markets, and improve the economic performance of the system. Stakeholders responsible for developing needed resources & commitment to projects When stakeholder responses does not meet system needs, planning process identifies regulated transmission solutions
Questions & Contact Information Questions Robert B. Burke Principal Analyst - Market Development ISO New England Inc. Office: 413-535-4356 Email: rburke@iso-ne.com