The role of the California ISO 
California's electricity industry includes traditional utilities, private power plant owners and state and federal agencies, each playing a unique role. Electricity on the "electron superhighway" we know as the power grid. As the impartial grid operator, it has no financial interest in any market segment and makes sure diverse resources have equal access to the transmission network and markets used to fine-tune the flow of electricity.
The ISO Market Offers:
A full network model that analyzes generation and transmission schedules submitted a day in advance to better manage or avoid real-time bottlenecks.
An integrated forward market that provides a one-stop shop for trading and analyzing the electricity bids, transmission capacity and reserves needed to keep the grid in balance.
Locational marginal pricing that creates a highly transparent system that prices electricity based on the cost of generating and delivering it.