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Independent Service Operator (ISO)
An independent entity that controls a power grid to coordinate the
generation and transmission of electricity and ensure a reliable power
supply. In current models, ISO's would be independent of the states'
utilities and would be regulated by FERC.
Performance Based Regulations (PBR)
Under performance-based ratemaking, rates for utility service would no
longer be based on cost-of-service, but instead on performance
standards and market indices. PBR allows a utility greater flexibility
to manage the costs of its electric system and to price its power at
competitive levels by taking the market risk for recovering the
revenues. Xcel Energy Company (formerly NSP) and Otter Tail Power
Company recently received approval from the ND PSC to implement PBR
for the first time in North Dakotas' history.
Wheeling Service
A service provided by a utility that owns transmission facilities.
Under a wheeling service agreement, the utility wheels, or transfers,
electric energy from a generating source to a purchaser. Energy can be
wheeled for short distances, across an entire system, or across
several systems.
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