FERC accepts improvements to ISO-NE’s economic study process 

The Federal Energy Regulatory Commission (FERC) has accepted ISO New England’s recently proposed improvements to the economic study process, which will help identify and avoid future transmission congestion costs through targeted upgrades. Analysis will be incorporated into one of the standardized scenarios modeled in the ISO’s economic studies. 

Until now, needs assessments that evaluated system efficiency transmission upgrades—previously known as market efficiency transmission upgrades—were performed on an ad-hoc basis, with no standardized process that would trigger a request for proposals (RFP). The latest improvements create a streamlined approach, to be repeated every two to three years, with a clearly defined metric for avoided congestion costs that would trigger a one-phase RFP, and steps that would move a proposal to construction. The process also includes a new interregional model to more accurately predict changes in future imports and exports of electricity. 

Since 2008, the ISO has completed 16 economic studies, looking at emerging trends including increasing interconnections with other regions, resource retirement scenarios, and the growth of renewable energy. Most recently, the Economic Planning for the Clean Energy Transition (EPCET) pilot study identified challenges that may develop by 2050 as New England transitions to a decarbonized grid supporting more electric vehicles and heat pumps. 

The economic study changes were accepted by FERC with an effective date of June 23, 2025.