California Independent System Operator (CAISO) is an independent, non-profit Independent System Operator (ISO), serving California. The CAISO oversees the operation of Californias bulk electric power system, transmission lines, and electricity market generated and transmitted by its member utilities. The primary stated mission of the CAISO is to "operate the grid reliably and efficiently, provide fair and open transmission access, promote environmental stewardship, and facilitate effective markets and promote infrastructure development." The CAISO is one of the largest ISOs in the world, delivering 300 million megawatt-hours of electricity each year and managing about 80% of Californias electric flow. CAISO was created in 1998 when the state restructured its electricity markets at the recommendation of the Federal Energy Regulatory Commission (FERC), following the passage of the federal Energy Policy Act of 1992, which removed barriers to competition in the wholesale generation of the electricity business. The CAISO is regulated by the FERC because interstate transmission lines fall under the jurisdiction of federal commerce laws.