Iso-Ne Transmission Operating Agreement

ISO-NE Transmission Operating Agreement: What You Need to Know

The ISO-NE Transmission Operating Agreement (TOA) is an important contract that governs the operation and maintenance of the high-voltage transmission system operated by the Independent System Operator of New England (ISO-NE). The TOA outlines the responsibilities of ISO-NE and the transmission owners (TOs) for ensuring the reliability of the electricity grid in New England.

Under the TOA, ISO-NE is responsible for managing the real-time operation of the transmission system, ensuring compliance with reliability standards, and coordinating the dispatch of power plants and other resources to maintain the balance of supply and demand. The TOs, which own and maintain the transmission lines and related equipment, are responsible for ensuring the physical integrity of the system and responding to outages and emergencies.

One of the key features of the TOA is its allocation of costs among the TOs based on their use of the transmission system. This cost allocation methodology, known as “postage stamp,” means that each TO pays the same rate for using the transmission system, regardless of the distance or location of the transmission lines. This system is intended to promote the efficient use of the transmission system and provide a fair distribution of costs among all TOs.

The TOA also includes provisions for planning and expanding the transmission system to meet future reliability needs and support the integration of renewable energy resources. ISO-NE conducts a regional system planning process to identify transmission upgrades or additions that are needed to maintain reliability and facilitate the development of new energy resources. The TOs are responsible for building and financing these transmission projects, subject to approval by ISO-NE and oversight by state and federal regulators.

The TOA has been a subject of controversy in recent years due to disputes over the allocation of costs for transmission upgrades and the role of ISO-NE in the planning and approval process. Some stakeholders have called for changes to the TOA to address these concerns and improve the transparency and accountability of the transmission planning process.

In conclusion, the ISO-NE Transmission Operating Agreement is a complex and important document that outlines the responsibilities and cost allocation for the operation and maintenance of New England`s high-voltage transmission system. Understanding the TOA is critical for ensuring the reliable and efficient delivery of electricity to customers in the region, and for supporting the integration of renewable energy resources and the transition to a low-carbon energy system.

Scroll to Top