Update on ISO-NE compliance with FERC large and co-located loads order

ISO New England is making progress on complying with a June 18 show cause order issued by the Federal Energy Regulatory Commission (FERC) related to the integration of large loads and co-located loads, such as data centers.

Informational filing on resource adequacy

In accordance with the order, ISO New England on Monday filed an informational report detailing how the region, through current practices and pending projects, creates incentives for retaining the existing generation fleet and investing in new resources, and is positioned to deal with increased uncertainty and volatility.

The report indicates, however, that new data centers and other large loads could create circumstances requiring specific approaches and procedures to facilitate their interconnections and ensure system reliability. Although large loads have not yet materialized in New England at scale, the ISO believes the region should prepare for their potential effects on the system.

Specifically, ISO-NE identifies two related actions it believes will be necessary: requiring new large loads to bring incremental new generation and not procuring capacity through the regional capacity market to serve these large loads.

Stakeholder discussions on compliance process begin

In the show cause order, FERC also gave grid operators the option to explain why existing rules adequately address large-load customers, or to submit proposed changes.

During a July 16 presentation to the NEPOOL Transmission Committee, the ISO outlined its plan to work with the region’s Participating Transmission Owners (PTOs) to jointly request a 90-day abeyance of the show cause proceeding.

If approved, the abeyance would allow the region to conduct a stakeholder process ahead of a Nov. 16 filing under Section 205 of the Federal Power Act addressing the show cause order’s five categories of reform:

• Developing efficient transmission service application and study processes, including consideration of alternative transmission technologies
• Preventing cost shifting and requiring transparency into transmission costs
• Accommodating co-location agreements and behind-the-meter generation
• Providing new transmission services for flexible large loads
• Developing a process to study generating facilities that serve electrically proximate large loads and co-located loads

Subject to discussions with regional stakeholders, ISO-NE anticipates including the recommendations from the resource adequacy filing — “bring your own generation” and not procuring capacity through the regional capacity market to serve these large loads — in its filing of proposed rule changes to address the show cause order.

Stakeholders will have the opportunity to review and discuss any proposed changes for large load interconnection next year before the ISO files detailed rules.