On January 22, 2026, the Federal Energy Regulatory Commission (FERC) issued 194 FERC ¶ 61,052 under Docket EL25-106-000 resulting in an important change to ISO-NE's Pay-for-Performance rules while leaving the existing stop-loss cost-allocation mechanism largely intact. The order makes it so the Balancing Ratio cannot exceed 1.0, while allowing the existing mutual allocation of stop-loss costs among capacity suppliers to remain.
Subsequently, On July 21, 2026, ISO-NE filed the related compliance filing (ER26-3213-000) with proposed changes. On September 28, 2026, FERC issued a Delegated Letter Order 196 FERC ¶ 61,240 accepting revisions to cap the Capacity Balancing Ratio, effective October 1, 2026.
ISO-NE has also submitted FERC filing (ER26-3379) to propose changes to System-Backed Exports in that they would be subject to a Performance Payment Rate charge during Capacity Scarcity Conditions. On September 30, 2023, FERC issued 196 FERC ¶ 61,252 accepting these revisions.
The following changes are effective as of October 1, 2026, in support of these FERC dockets:
See this knowledge article for details on these changes.
If you have questions regarding this message, please contact the Participant Support and Solutions Team by submitting a case via Ask ISO, emailing AskISO@iso-ne.com, or by phone at (413) 540-4220.
