Below, access materials related to the cost review of regulated transmission additions, modifications, reconstructions, or replacements of pool transmission facilities (PTFs) that are eligible for regional cost support.
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About the ISO’s Cost-Allocation Review
The ISO’s responsibilities as Regional Transmission Organization include Transmission Cost Allocation (TCA). That means deciding who pays for regulated (not merchant) transmission projects, in a collaborative and transparent process, as follows:
- Transmission owners (TOs) submit a TCA application for projects that qualify for regional rate recovery.
- The ISO reviews all costs proposed to be included in the regional rate, pursuant to the ISO Tariff. Along with deciding whether regional cost support is justified, the ISO will consider whether costs are reasonable and in accordance with good utility practice.
- The ISO seeks and considers advisory input from the Reliability Committee on potential localized costs associated with the project. For larger projects, an open stakeholder meeting may be held at the ISO’s discretion.
- The ISO makes a determination of whether the project costs should be regionalized and/or localized:
- Regionalized costs—Projects that will improve reliability throughout the region provide a benefit for all of New England, and their costs are shared by the region. A region’s share of the costs is proportionate to its electricity demand.
- Localized costs—Portions of a project that do not provide a regional reliability benefit are typically the responsibility of the transmission owner. Examples of localized costs can be found in Attachment A of Planning Procedure 4.
For details, please see these resources: