CAISO stands for the California Independent System Operator—a non-profit organization responsible for operating California’s high-voltage electricity grid, maintaining system reliability, and managing the wholesale electricity market across much of the state and parts of neighboring regions.
Key Functions of CAISO:
Grid Operation
Balances electricity supply and demand in real time
Manages power flow across more than 80% of California’s transmission system
Wholesale Market Management
Runs day-ahead and real-time electricity markets
Coordinates bids from generators, demand response providers, and storage operators
Resource Integration
Integrates renewable energy (e.g., solar, wind) and energy storage into the grid
Maintains grid stability amid variable energy sources
Transmission Planning
Evaluates and approves infrastructure needed for future electricity needs
Supports electrification and decarbonization efforts
