As of 2024 there are nine independent system operators (ISO's) and Regional transmission organizations (RTO's) in North America. In essence they are in charge of maintaining the power grid. As the name suggests ISO New England accounts for the bulk of the power management in New England. 

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• Brief History: ISO-NE was created by the Federal Energy Regulatory Commission in 1997 as a replacement for New England Power Pool, which was establish in 1971. A year after the creation of ISO-NE the Energy Market in Massachusetts was deregulated. One year later, 1999 ISO-NE implemented a wholesale energy market. 

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• Deregulation: The practice of a deregulated energy market allows the consumer to choose an energy supplier and a specific plan that works best for them. This promotes competition between the suppliers in terms of price and service. The idea was first introduced in the 1970's, however it took a long time to catch on. As of 2024 only 32 states have a deregulated market.   

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• 3 Core functions

  • Grid operation: ISO-NE is based in Holyoke, MA. From their offices in Holyoke they monitor and direct the flow of electricity throughout the 6 states of New England. ISO predicts or "forecasts" energy demand or "load" that the power grid will experience at any given time of the day. This ensures that the grid is reliable even in the occurrence of a generator tripping or powerline going down. Additionally ISO-NE regulates proposed major outages by analyzing the economic impact. From just 2006-2016 ISO-NE prevented an estimated $210.5 million dollars in congestion costs to New England consumers.     ​

  • Market administration:  ISO-NE regulates the Energy Market which is where energy is bought and sold as a commodity. They manage the prices of two markets, a day-ahead market and a real-time market. There is a market cap which ensures that there will be enough supply for expected load up to 3 years out.  Forward Reserve Market (FRM) compensates energy supplier who are able to meet the load on the market within 10-30 minutes notice.   

  • Power system planning: Planning accounts for the management of the future power grid by taking into account factors such as the likelihood of power plant retirements (primarily thermals), the development of the region’s renewable resources, public policy, and the close interaction between the natural gas and electric power systems. This management includes coordinating how transmission lines, power plants, and other resources connect to and operate on the grid.

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• For an inside look at what ISO-NE tracks head here.