How does each region manage congestion, allocate losses and dispatch resources? Which players gain the most from each approach?
The United States now has six independent system operators, five approved by the Federal Energy Regulatory Commission and one approved by the Public Utility Commission of Texas. These ISOs present an astonishing array of similar and conflicting rules and philosophies by which transmission services are defined and priced.
This article aims to explain some of the key similarities and differences among the ISOs' transmission pricing schemes.