FERC issues unanimously a Show Cause Order (with each Commissioner separately attaching a statement) finding that ISO-NE’s Tariff appears to be unjust, unreasonable, or unduly discriminatory or preferential (in that it does not adequately address the challenges associated with the integration of large and co-located loads onto the transmission system) (the FERC issued similar orders covering each organized ISO/RTO market in lieu of taking final action on its still pending ANOPR).  The 206 proceeding instituted for New England directs ISO-NE and the Participating Transmission Owners, on or before August 17, 2026, to either: 

(a) show cause as to why the Tariff remains just and reasonable and not unduly discriminatory or preferential without provisions addressing the following five areas:

• the application process, study procedures, and ongoing operational requirements that apply to Eligible Customers seeking transmission service on behalf of large loads;
• additional transparency concerning the network upgrade costs to provide transmission service to Eligible Customers on behalf of large loads, a pro forma cost recovery agreement between ISO-NE, the relevant transmission owner, and Eligible Customer taking transmission service on behalf of the large load to mitigate the risk of cost shifting among transmission customers, and a mechanism to ensure such payments are appropriately credited toward transmission owners’ transmission revenue requirements consistent with the Commission’s cost-of-service regulations;
• the rates, terms, and conditions of service that apply to co-location arrangements;
• transmission services that reflect Eligible Customers taking transmission service on behalf of co-located loads, load with behind the meter generation, and flexible large loads that are willing and able to limit their use of the transmission system under certain conditions;  and
• the rates, terms, and conditions of service applicable to interconnection customers serving electrically proximate large load or co-located load; or

(b) explain what Tariff changes would remedy the identified concerns if the FERC were to determine that the Tariff has in fact become unjust and unreasonable or unduly discriminatory or preferential and, therefore, proceeds to establish replacement Tariff provisions. 

30-day Informational Report.  In addition, the FERC, noting it’s concern with ISO-NE’s need to ensure adequate generation to serve new large loads, directed ISO-NE to submit, on or before July 18, 2026, an informational report on how ISO-NE intends to ensure that adequate generation will be available to serve existing and new large loads.

205 Filings Encouraged.  The FERC strongly encouraged ISO-NE and/or the Participating Transmission Owners (to the extent the matters addressed herein implicate aspects of the Tariff over which they have the filing rights) to elect to address some or all of the issues discussed in the Order by proposing Tariff revisions pursuant to their applicable FPA section 205 filing rights. 

Limited Abeyance Possible.  The FERC said it would consider requests from ISO-NE and/or the Participating Transmission Owners to hold, for up to 90 days, all or certain aspects of this FPA section 206 proceeding in abeyance, including the deadline to respond to this order, to allow time for any Tariff changes or Section  205 filings addressing the issues raised in the Order to be worked through the stakeholder process.  The FERC noted that any such abeyance requests, which must be submitted by August 3, 2026, would not be granted reflexively, and would likely be limited to 90 days (requests to extend the abeyance period will be looked on with great disfavor).

Response to Filings.  Interested entities will have 30 days to respond to ISO-NE’s and/or the PTOs’ filings, addressing either or both of (a) and (b) above. 

Interventions due in 21 Days.  Interventions are due on or before July 9, 2026.  Please plan accordingly.

Further Summary.  A more fulsome summary of the Order has been provided to the Transmission Committee.  

PSNH proposes to establish a 10-year depreciation rate for Account 351.2 (Computer Software) because, for the first time, PSNH has a computer software asset with a 10-year depreciable life.  The depreciation rate will be set forth in PSNH’s Appendix D to Attachment F of the ISO-NE OATT and is estimated to increase PSNH’s depreciation expense by approximately $391,298 annually.