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Core functions


Monitor Market Performance 

Monitor market performance to identify potential anti-competitive market behavior or market inefficiencies.

Assess Market Rules and ISO Operational Practices

Identify ineffective market rules or ISO operational practices and recommend changes to improve wholesale competition and efficient market outcomes.

Conduct Market Analysis (Efficiency)

Provide analysis on market performance with particular focus on the structural competitiveness and efficiency of the wholesale markets and the effectiveness of bid mitigation rules to remedy the potential exercise of market power.

Conduct Market Analysis (Investment Signals)

Evaluate the effectiveness of the markets in signaling needed investment in generation, transmission, and demand response infrastructure and identify any potential barriers that impede the market's ability to provide needed investments.

Refer Market Violations to FERC 

Collect information regarding market rule violations and refer to FERC for enforcement.

Manage Coordination with Regulatory/Legal Entities

Coordinate and assist with referrals, investigations and inquiries by other regulatory and legal entities.

Provide Advice to Management and Board

Provide independent advice to California ISO CEO and Board on market related matters.

Potential corrective actions


A transparent and open market is the best way to achieve competitive electricity prices. However, situations may develop where corrective action is needed to ensure that the market continues functioning in a fair and efficient manner. Response actions include the following:

  • Seek tariff and protocol changes to improve market efficiency and fairness

  • Seek changes to market power mitigation rules, bid caps or floors and mitigation procedures

  • Report and refer to regulatory agencies for possible enforcement action.

Additional details on the role and responsibility of the Department of Market Monitoring can be found in Appendix P of the ISO Tariff. Because operating the California grid is a complex undertaking, the ISO will always be reviewing its rules and protocols with an eye towards improving the efficiency of the market.