ISO New England is required to collect and remit state sales tax on energy purchases made by customers that are not for resale, unless otherwise exempted. This is because the ISO is considered the central counterparty to all transactions that flow into and out of the New England Control Area, and thus takes momentary title to all electricity purchased and sold through the ISO’s markets.
Provisions and explanation of sales and use tax collection and reporting is provided in the related FAQ page on our website.
Customers who purchase electricity that is not for resale through the ISO markets can expect to receive a monthly charge for sales tax on those purchases in the applicable state in which the purchases were made.
Sales tax charges are included on the monthly bill as a line item entitled “[State] Sales Tax.”