FERC approves ISO-NE review of utilities' asset condition projects

ISO New England becomes the region's Asset Condition Reviewer on January 1, 2027, after the Federal Energy Regulatory Commission on October 16 accepted the tariff changes that create the job (FERC order, Docket Nos. ER26-3533 and ER26-3534). Asset condition projects are transmission owners' work to replace or rebuild "aging, deteriorating, or obsolete transmission elements," and the grid operator will now check each one that meets the review thresholds for technical need, cost-effectiveness and alternatives.

The owners being reviewed co-filed the proposal, which the filers say had unanimous support from the New England states, owners, consumer advocates and other stakeholders at NEPOOL. Review covers projects where the owner forecasts $25 million or more of Pool Transmission Facilities costs on one line or substation over five years or less, and programs of related projects forecast at $100 million or more of those costs, or meeting a three-part test that starts with touching 15% or more of the owner's Pool Transmission Facilities lines or substations.

The reviewer gets a voice, not a veto. Per the order, ISO-NE will not decide whether a project proceeds and will not opine on whether costs are prudent. FERC found the role "will help bring greater visibility into the need for and planning of Asset Condition Projects in ISO-NE."

The category has drawn complaints. New England ratepayer advocates filed a FERC complaint in May over a roughly $360 million Eversource asset condition project in New Hampshire, Utility Dive reports. ISO-NE has been an interim reviewer for some projects in 2026, and when Eversource paused an $82.4 million project near Boston in September, it disputed an ISO-NE consultant's finding that it had not shown the project was needed in the near term, the outlet says.

Concurring, Commissioner David Rosner called the proposal "first-of-its-kind" and asked other regions to take note of the model. Commissioner Judy Chang called on them to create similar arrangements and asked ISO-NE and others to consider extending the role to "other types of local transmission projects, beyond what New England categorizes as asset condition projects."