Utility distribution company

Utility distribution companies and small utility distribution companies play key roles in how the ISO manages energy schedules.

Utility distribution company (UDC)

An entity that owns a distribution system for the delivery of energy to and from the ISO Balancing Authority, and:

• Provides regulated retail electric service to eligible customers; and
• Provides regulated procurement service to those end-user customers who are not yet eligible for direct access, or who choose not to arrange services through another retailer.

Small utility distribution company (SUDC)

An entity that owns a distribution system that is capable of transmitting or delivering energy to and from the ISO Balancing Authority that provides retail electric service to end-user customers, and has the following characteristics:

• Annual peak demand is 25 MW or less;
• The distribution system is not in a local reliability area defined by the ISO; and
• Good utility practice was used in designing all substation facilities that are owned or operated by the entity and interconnected to the ISO Balancing Authority, and none of those substations has transmission circuit breakers.