ISO New England obtains credit protection in the form of credit insurance covering market participants that qualify for an unsecured credit limit for financial assurance. The cost of the credit insurance obtained for each calendar year is allocated on a pro rata basis to those market participants.
The provisions of credit insurance and how the participants are charged for its costs are included in the ISO New England Financial Assurance Policy. Further details can be found on the billing job aid for the corresponding bill on which the credit insurance charge appears, available on the Understanding the Bill page.
Each market participant with an unsecured credit limit incurs this charge. The charge is based on a market participant’s average invoice in the preceding calendar year as a percentage of the total average invoices for all market participants with an unsecured credit limit. Invoices are issued under the ISO New England Billing Policy.
The credit insurance charge is included in a single monthly bill during the year. The line item on the bill is entitled “Credit Ins Chg [Date Range].”