Lesson 1 of 9 · about 16 minutes
Three Grids, Seven Market Operators, and a West That Never Joined
You'll be able to
- Name the three U.S. interconnections and say which one Idaho is in
- Match each RTO or ISO to its interconnection and explain why most of the West sits outside them
- Identify the balancing authorities and transmission owners that serve Idaho
- Use a utility's own numbers to check the scale of an import claim
The power grid course already walked through the machines: generation, step-up transformers, transmission, substations, distribution. It also covered the basic kinds of utilities and the seven big market operators in Who Runs the Grid. This course picks up where that one stopped. It is about the big lines being built across southern Idaho, who decides how power moves on them, and who pays for them. To follow any of that, you need a map in your head of how the West is organized, because it is organized very differently from the rest of the country.
Three grids that barely touch
The lower 48 states run on three separate synchronized grids, called interconnections. Inside each one, every large generator spins in step at 60 hertz. Between them, power moves only through a handful of limited ties. EIA describes them as operating "largely independently from each other."
| Interconnection | Area (EIA) | Balancing authorities (EIA) | Market operators inside it |
|---|---|---|---|
| Eastern | East of the Rockies, plus part of northern Texas | 36 (31 U.S., 5 Canada) | PJM, MISO, SPP, NYISO, ISO-NE |
| Western | The Rockies west, including parts of Canada and Mexico | 37 (34 U.S., 2 Canada, 1 Mexico) | CAISO; SPP's RTO since April 1, 2026 in part of the Rocky Mountain region |
| ERCOT | Most of Texas | 1 | ERCOT |
Idaho sits entirely in the Western Interconnection. A kilowatt-hour generated at a dam on the Snake River is electrically in step with a gas plant in Arizona and a wind farm in Wyoming. It is not in step with anything in Kansas.
RTOs: a voluntary club the West mostly skipped
FERC's own history of market operators is short. In its open access orders of the 1990s it suggested independent system operators as one way for existing power pools to give everyone fair use of the wires. Then Order No. 2000 "encouraged the voluntary formation" of regional transmission organizations and listed twelve characteristics an RTO must have. The key word is voluntary. Utilities in the Midwest, Mid-Atlantic, New England, New York, Texas and California formed or joined RTOs and ISOs. FERC's list of them today has seven names: CAISO, ERCOT, SPP, MISO, PJM, NYISO and ISO-NE.
Most of the West outside California stayed out. Each large utility kept running its own balancing area, planning its own transmission and trading with neighbors through bilateral contracts. That is why the West has more balancing authorities than the much larger Eastern grid. And it is why the West's market changes, covered in lessons 2 and 3, come in pieces: a real-time market in 2014, a day-ahead market in 2026, a competing day-ahead market planned for 2027, and a new governing board seated in September 2026.
Who actually runs the grid in Idaho
Several organizations keep the lights on in different parts of the state. The ones that matter most for this course:
| Organization | What it is | Idaho footprint | Real-time market (as of Oct. 2026) |
|---|---|---|---|
| Idaho Power | Investor-owned utility and balancing authority | Southern and southwest Idaho, including the Treasure and Magic valleys; owns the Midpoint and Hemingway hubs | WEIM since 2018 |
| PacifiCorp (Rocky Mountain Power in Idaho) | Investor-owned utility with two balancing areas; the eastern one covers eastern Idaho and Utah | Eastern Idaho; co-owner of major 500 kV lines into Midpoint and Hemingway | WEIM since 2014; EDAM since May 2026 |
| Bonneville Power Administration | Federal power marketing agency and balancing authority | Transmission and wholesale power for many Idaho co-ops and city utilities | WEIM since 2022; pursuing SPP's Markets+ |
| Avista | Investor-owned utility and balancing authority | North Idaho | WEIM since 2022 |
The market entry years come from the Western Energy Markets participant list. Co-ops and city utilities such as those that buy from BPA sit inside someone else's balancing area. Their power still moves on the same wires.
Hubs, paths and why two substations keep coming up
Transmission works as a network, but a few nodes carry far more weight than others. In southern Idaho, two of them come up in almost every big project.
- Midpoint substation, north of the Snake River in south central Idaho. Idaho Power describes it as near Jerome; the Idaho PUC's 2025 SWIP-N order says near Shoshone; press releases say near Twin Falls. Same place. SWIP-N ends here, and Gateway West segments run into it.
- Hemingway substation, in western Owyhee County. The BLM describes it as near Melba, about 20 miles southwest of Boise. Boardman to Hemingway ends here, and so do Gateway West segments from the east.
PacifiCorp's 2026 progress report to WECC lists an existing 500 kV Midpoint to Hemingway circuit, in service since July 2010, plus a planned second Midpoint to Hemingway circuit targeted for the fourth quarter of 2028. Put a new line into one of these hubs and you change what can flow across the whole southern Idaho corridor.
Checking the scale of a claim
Example: is 13,000 MW a lot?
Idaho Power's SWIP-N page says the Desert Southwest has up to 13,000 MW of winter surplus power, which it calls about 3.5 times what its own service area uses on its hottest summer day. You can back out the implied peak.
- Implied Idaho Power peak: 13,000 MW / 3.5 = about 3,714 MW.
- Idaho Power's share of SWIP-N northbound capacity: 500 MW.
- Share of its implied peak: 500 / 3,714 = 0.135, or about 13 percent.
- Share of the claimed Southwest surplus: 500 / 13,000 = 0.038, or under 4 percent.
The line is meaningful for Idaho Power's winter planning but nowhere near its whole load. And the 13,000 MW surplus figure tells you nothing about what share of it Idaho Power could actually buy on a cold January evening, which depends on prices and on everyone else bidding for the same power. When a utility uses a big regional number, ask what slice of it the plan actually relies on.
Where does 13,000 MW come from? Brattle's market report for Great Basin says the Desert Southwest's winter peak runs about "13 GW lower than the summer peak." Lower demand isn't the same as surplus supply for sale, so ask Idaho Power how much of that it has contracted.
Common mix-ups
- Claim: Joining a Western market means Idaho joined California's grid. What the evidence shows: Idaho was always in the same synchronized Western Interconnection as California. Market participation is a separate, voluntary choice about how trades are scheduled and priced.
- Claim: The Western grid is run by one operator. What the evidence shows: EIA counts 37 balancing authorities in the West. CAISO operates one of them, plus markets that others join voluntarily.
- Claim: Power from a new line goes only where the contract says. What the evidence shows: Contracts assign who pays and who has rights. Physics decides the flows, which is why a line into Midpoint affects the whole corridor.
Reporting angle
- Ask any utility serving your area which balancing authority it sits in and which markets it trades in. The answer decides which tariffs and which regulators matter.
- For a co-op or city utility, ask whether its wholesale supplier is BPA and what BPA's market decision means for its power costs. BPA's rate and market documents are public.
- When a project touches Midpoint or Hemingway, ask for the transfer capability before and after, in MW, in each direction. That is the number that tells you what the line changes.
- Numbers to check: the utility's record peak from its integrated resource plan, its import capability, and how much of a project's capacity it actually holds.
Research angle
- EIA on interconnections and balancing authorities, and EIA's Hourly Electric Grid Monitor, which shows each balancing authority's demand and interchange.
- FERC's RTO and ISO page, with links to each operator.
- Western Energy Markets participant list with entry dates.
- WECC's annual progress reports from each transmission owner, such as PacifiCorp's 2026 report, list planned lines with voltages, miles and target dates.
- Background in this site's power grid course: From Power Plant to Outlet and Balancing Supply and Demand.
Check yourself
1. According to EIA, how many balancing authorities operate in the Western Interconnection?
EIA counts 37 in the Western Interconnection: 34 in the U.S., 2 in Canada and 1 in Mexico. The Eastern has 36 and ERCOT has one.
2. Which of these RTOs or ISOs operates inside the Western Interconnection?
CAISO runs most of California, which is in the Western Interconnection. SPP's RTO also reached into the West in April 2026. PJM, MISO and ISO-NE are Eastern.
3. Idaho Power says the Desert Southwest can have up to 13,000 MW of winter surplus, about 3.5 times its own use on its hottest day. Roughly what peak does that imply for Idaho Power?
13,000 divided by 3.5 is about 3,714 MW. The arithmetic only checks consistency; confirm the actual record peak in Idaho Power's resource plan.
4. What does FERC's Order No. 2000 do?
FERC describes Order 2000 as encouraging voluntary RTO formation, with twelve characteristics and functions. Joining stayed voluntary, which is why much of the West never did.
5. In a region with no RTO, who keeps supply and demand in balance minute to minute?
EIA defines the balancing authority as the entity that runs the system in real time. In the non-RTO West, that is mostly individual utilities such as Idaho Power and PacifiCorp.
Terms in this lesson
- Interconnection
- A large synchronized grid. The lower 48 has three: Eastern, Western and ERCOT, linked to each other only by limited ties.
- The entity that keeps generation, load and imports in balance in real time for a defined area.
- RTO / ISO
- Regional transmission organization or independent system operator: a nonprofit that runs the high-voltage grid and a wholesale market across many utilities.
- Transmission owner
- The company or agency that owns a high-voltage line. It may or may not be the one that schedules power on it.
- Substation hub
- A major switching point where several high-voltage lines meet, such as Midpoint in south central Idaho or Hemingway in southwest Idaho.
Sources
- EIA Today in Energy: U.S. electric system is made up of interconnections and balancing authorities checked 2026-10
- FERC: RTOs and ISOs checked 2026-10
- SPP: RTO expansion into the Western Interconnection checked 2026-10
- Idaho Power: SWIP-North project page checked 2026-10
- Western Energy Markets: Western Energy Imbalance Market participants checked 2026-10
- BLM: BLM unveils routes for final segments of Gateway West transmission line (Oct. 6, 2016) checked 2026-10
- PacifiCorp 2026 Annual Progress Report to WECC checked 2026-10