California electric restructuring; A broad description of the development of the California ISO

There is a great need to identify prudent practices and share lessons learned from the California electric market restructuring effort. The changes of the electric wholesale and retail market have necessitated monumental change to the existing operating systems in California. Be assured of one thing, there is no "magical formula" for restructuring a wholesale and retail market or creating an independent system operator (ISO). Each nation, province, state, municipality, or location must best determine the course that is appropriate and functional in order to meet the respective needs. This paper will deal with the issues, truths, and real problems arising from the restructuring in California from a perspective of system operation. The paper is intended to be a "mentor" to the would-be ISO, a tutor to diverse participants, and a refreshing touch with the reality and requirements of real-time operation.