Press Releases
09/14/2023
Consumer Counsel Coleman, Consumer Advocates of New England Call for Stronger Oversight of Skyrocketing Expenditures by Region's Transmission Owners
CANE works to protect ratepayers from unnecessary costs
NEW BRITAIN, CT – Today, Consumer Counsel Claire Coleman joined the Maine Office of the Public Advocate, Massachusetts Attorney General’s Office, the New Hampshire Office of the Consumer Advocate, and the Rhode Island Division of Public Utilities and Carriers (collectively Consumer Advocates of New England, "CANE”) in expressing their concern to ISO New England (ISO-NE) -- the independent system operator that oversees the region’s bulk electricity transmission lines -- regarding the projected dramatic increase in expenditures by New England Transmission Owners (NETOs). In a letter sent to the ISO-NE Planning Advisory Committee, the consumer advocates challenge the lack of scrutiny given to asset condition projects under the current IS0-NE planning approval process.
“Controlling transmission costs at the regional level represents an important part of managing electricity expenses for ratepayers in Connecticut and all of New England,” said Consumer Counsel Coleman. “In Connecticut, we have worked through the Public Utilities Regulatory Authority to scrutinize the bills that electric utilities hope to pass along to consumers at the local level for all types of spending. We need to bring the same level of rigor and scrutiny to regional transmission operators and the asset condition expenditures that they pass through to ratepayers, currently with little oversight. This collective effort with fellow consumer advocates in calling attention to these rapidly growing costs is the first step to improving the transmission upgrade review process to better protect ratepayers.”
The NETOs recently increased their projected assessments for upgrading the New England transmission system by 50% from previous estimates. Specifically, there are now approximately $5 billion in “asset condition” projects that are proposed, planned, or under construction. The letter highlights the significant, incremental cost burden these impending increases will have on New England ratepayers, who are already struggling to pay some of the highest electricity prices in the nation. These proposed increases also follow a doubling of transmission rates of the last 10 years, as well as recent significant increases in prices for electric supply and various other reliability services managed by ISO-NE.
Asset condition projects often involve the replacement of existing transmission facilities with new facilities that will perform the same function. A transmission owner’s decision to replace or repair existing transmission facilities can be based on a currently unclear mix of factors, some of which are not disclosed to stakeholders or the public. Under the minimal existing rules, such projects are usually self-approved by transmission owners and are not generally subject to any meaningful scrutiny by ISO-NE, unlike proposals for new transmission projects for reliability needs. New England advocates are calling for that to change to protect ratepayers from potentially significant unnecessary costs.
Additionally, CANE’s letter calls for a temporary pause on the development of asset condition projects that have yet to begin construction in order to implement stronger standards within the planning approval process for these proposed projects. These standards should establish appropriate criteria for determining when an asset condition project is necessary, as well determining the appropriate scope of such projects. A delay, even for a short period, will ensure investments are need-based and completed in the most efficient manner possible, ultimately resulting in greater cost-saving opportunities for ratepayers. Such standards will lead to a more disciplined and transparent process with sufficient oversight to better protect ratepayers’ pocketbooks.
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CONTACT:
Brooke Parker
Communications & Legislative Program Manager