Overall reliability planning and coordination of the interconnected power systems are the responsibility of the North American Electric Reliability Council (NERC), which was voluntarily formed in 1968 by the electric utility industry as a result of the 1965 power failure in the Northeast.

NERC's nine regional councils cover the 48 contiguous States, part of Alaska, and portions of Canada and Mexico. The councils are responsible for overall coordination of bulk power policies that affect the reliability and adequacy of service in their areas. They also regularly exchange operating and planning information among their member utilities. The boundaries of the NERC regions follow the service areas of the electric utilities in the region, many of which do not follow State boundaries.

At present, the industry is in transition. Steady progress toward competitive wholesale markets for electric power recently has been accelerated by FERC Order 888, which opens access to transmission lines and encourages greater wholesale trade.

Let's do a quick recap of the grid section.