What is the difference between an RTO and an ISO?
The primary difference between an ISO and an RTO is that there is no scope requirement associated with ISO status. However this simple response requires some background. ISOs grew out of Orders Nos. 888/889 where the Commission suggested the concept of an Independent System Operator as one way for existing tight power pools to satisfy the requirement of providing non-discriminatory access to transmission. Subsequently, in Order No. 2000, the Commission encouraged the voluntary formation of Regional Transmission Organizations (RTOs) 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 an RTO including that an RTO must be of sufficient regional scope.
