set up as nonprofit corporations using governance models approved by FERC and/or regional or local commissions. There are regions of the United States where ISOs do not exist and, consequently, the utilities do not engage in wholesale power markets. The Pacific Northwest, and states east of California and west of the Dakotas, Nebraska, Kansas and Texas largely do not participate. The majority of Southeastern states also do not participate in wholesale markets. While these regions must conform to open access as mandated by FERC, the power exchanges between utilities is mostly facilitated through bilateral contracts and power purchase agreements. Current ISOs There are nine ISOs within North America: CAISO - California ISO NYISO - New York ISO Electric Reliability Council of Texas (ERCOT); also a Regional Reliability Council Midcontinent Independent System Operator - Midcontinent ISO ISO-NE - ISO New England SPP - Southwest Power Pool PJM - Pennsylvania-New Jersey-Maryland Interconnection AESO - Alberta Electric System Operator Independent Electricity System Operator (IESO); operates the Hydro One transmission grid for Ontario, Canada The New Brunswick System Operator (NBSO) was dissolved when New Brunswick's new Electricity Act went into effect on October 1, 2013. Regional transmission organizations (RTOs) An RTO is an organization formed at the approval of the Federal Energy Regulatory Commission (FERC). In the areas where an RTO is established, it coordinates, controls and monitors the operation of the electrical power system, usually within a single US State, but sometimes encompassing multiple states. The official definition for an RTO: "An entity that is independent from all generation and power marketing interests and has exclusive responsibility for grid operations, short-term reliability, and transmission service within a region." The designation of an RTO is largely one of scope. In addition, an organization wanting to achieve RTO status must petition the FERC for approval and meet 4 minimum characteristics and 8 minimum functions: Characteristics Independence – an RTO should be independent from its market participants in financial interests, decision-making, and tariff-setting. Scope and regional configuration – the region for an RTO should be chosen to achieve the necessary regulatory, reliability, operational, and competitive benefits. Operational authority – an RTO must have the authority to control its transmission facilities (e.g. switching elements in and out of service, monitoring and controlling voltage) and must be the security coordinator for its region. Short-term reliability – an RTO must ensure the region meets the NERC reliability standards or