ISO New England pursuing major projects in 2026

In the year ahead, ISO New England will continue innovative efforts around market design, transmission planning, consumer engagement, and more. Here’s a look at milestones expected in 2026.

Capacity market reforms

• In December the ISO filed with the Federal Energy Regulatory Commission (FERC) the first part of its proposal to redesign the capacity market, outlining a prompt auction schedule and deactivation reforms.
• The second part will establish seasonal auctions and resource accreditation standards. Design work and stakeholder discussion on these topics will continue throughout 2026. A second FERC filing is expected before the end of the year.

Longer-term transmission planning

• Last year, at the direction of the New England States Committee on Electricity, ISO-NE issued a request for proposals to address transmission constraints between Maine and the rest of the region.
• Transmission companies submitted six proposals, which the ISO is now reviewing. The ISO may announce a preferred solution in September.
• FERC Order Nos. 1920, 1920-A, and 1920-B address additional longer-term transmission planning reforms. Stakeholder discussions on compliance are expected to begin in the third quarter.

Asset condition review

• At the request of stakeholders, ISO-NE has agreed to conduct independent reviews of transmission owners’ proposals to replace deteriorating transmission facilities, called asset condition projects. The goal is to increase transparency around these projects.
• Throughout 2026, a consultant will assist in interim reviews and help the ISO develop a framework for a permanent, ISO-run process. A finalized definition of the role is expected in 2027.

Ancillary services

• The Day-Ahead Ancillary Services Market will mark one year of operations on Feb. 28. The ISO has been assessing the performance and competitiveness of the market, and plans to present findings and any potential recommendations for enhancements during the first or second quarter.
• In the fourth quarter, the ISO plans to begin stakeholder discussions around dynamic operating reserves. These potential new products would address uncertainties resulting from the growth of intermittent power resources and increasing variability in demand.

Energy adequacy

• Over the last few years, the ISO developed its Probabilistic Energy Adequacy Tool (PEAT) and related Regional Energy Shortfall Threshold (REST) metric.
• In 2026 it will operationalize an annual process using these tools. In the first quarter, the ISO will work with stakeholders to develop inputs and scenarios for five- and 10-year energy assessments. Results will be reported in the fourth quarter.
• Additionally, the ISO will use PEAT and REST ahead of each summer and winter to assess the region’s preparedness.

Interconnection queue

• ISO-NE launched its Transitional Cluster Study in the fall of 2025. It’s the first study of energy resource interconnection requests implemented under FERC Order Nos. 2023 and 2023-A, which seek to address queue backlogs across the country.
• The initial study report is expected in June, with the final report following in August.
• The cluster request window for the first, regular cluster study will open in October.

Surplus interconnection service

• Beginning in the first quarter, the ISO is identifying issues and scenarios around participants’ limited use of existing surplus interconnection service rules. Subsequently, the ISO will scope potential solutions regarding access and use of the rules.

Forecast report

• Published every year on May 1, the ISO’s annual Forecast Report of Capacity, Energy, Loads, and Transmission (CELT Report) is a foundational resource for system planning and reliability studies. It contains detailed information about the current resource mix, as well as long-term projections for electricity demand and adoption of technology like distributed solar photovoltaics, electric vehicles, and air-source heat pumps.
• ISO-NE will discuss the findings, as well as the importance of forecasting, shortly after the report is published. Details will be announced on ISO Newswire.

Consumer engagement

• ISO New England plans to engage with members of the public in new ways in 2026. In February it will host an “ISO 101” webinar about the ISO’s roles and functions. It is also planning “virtual office hours,” where members of the public will be able to ask questions of ISO staff.
• The Consumer Liaison Group (CLG) is a forum for the exchange of information between ISO New England and electricity consumers. As it has for the last 15 years, the CLG will meet quarterly in locations around the region. Dates, venues, topics, and speakers will be announced on ISO Newswire, as well as via the CLG email list.

Go deeper

• Many of the projects mentioned here are discussed in greater detail in the ISO’s Annual Work Plan.