Annual Work Plan update highlights ISO-NE market, planning initiatives

ISO New England has issued the spring update to its 2026 Annual Work Plan, outlining progress on major efforts for the year.

Anchor projects and related core implementations are the highest-priority initiatives across the ISO for securing and advancing a reliable, cost-effective electric power system through innovation and collaboration:

• Capacity Auction Reforms: The Federal Energy Regulatory Commission (FERC) recently accepted the first phase of reforms, which involves moving capacity auctions to a “prompt” timeline, as well as updating the process for resources exiting the capacity market. Stakeholder discussions continue on a second phase addressing seasonal auctions and resource accreditation, with a FERC filing expected by the end of 2026.
• Dynamic Operating Reserves: The ISO continues to assess new reserve products to compensate resources that provide flexible response capabilities. The need for these products is driven by continuing growth of intermittent solar and wind power, as well as increasing variability in demand. Stakeholder discussions are targeted to begin no earlier than the fourth quarter.
• Longer-Term Transmission Planning: The ISO continues to evaluate proposals to upgrade the transmission system between northern Maine, where land-based wind generation is expected to increase, and more populous regions of southern New England, where demand for electricity is highest. The ISO may identify a preferred solution as soon as September. Meanwhile, work continues to bring the ISO into compliance with a FERC order related to longer-term transmission planning.
• Asset Condition Reviewer: The New England states and other stakeholders have asked the ISO to develop a robust process for additional, independent review of transmission owners’ proposals for refurbishing aging transmission facilities. Discussion of interim review findings are anticipated to begin in the second or third quarter of 2026. The permanent reviewer role is on target to be in place by January 2027.
• Information Technology: To manage an increasingly complex power grid, and to comply with FERC orders, the ISO continues to develop new software and systems.

Also addressed in the update are notable initiatives around surplus interconnection service rules, assessment of the Day-Ahead Ancillary Services market, revising Pay-for-Performance rules, and more.

The Annual Work Plan is published each fall and updated each spring. The ISO solicits input from stakeholders by sharing and discussing the plan with the New England Power Pool (NEPOOL) Participants Committee, as well as representatives of the New England states through the New England Conference of Public Utilities Commissioners (NECPUC) and the New England States Committee on Electricity (NESCOE). Ultimately, the work plan helps inform the ISO’s annual budget.