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Regulator Suggests Cost Allocation To Retail Suppliers To Implement Use Of AMI For RTO Load Settlement
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The Massachusetts DPU has opened an investigation to examine necessary systems and system upgrades to allow load settlement with ISO-NE based on customer interval usage data collected by AMI
The proceeding will also consider developing other policies to enable the offering of time-varying rates (TVR) by retail electric suppliers
The DPU sought to understand:
1. the EDCs’ and ISO-NE’s capabilities, now and going forward, for transmitting, accepting, and using AMI interval usage data for the purpose of load settlement;
2. the resources, time, and steps needed to enable use of AMI interval usage data for load settlement in the ISO-NE energy and ancillary services markets, including any necessary actions to be taken by the EDCs, ISO-NE, retail electricity suppliers, municipal aggregators, third-party energy service providers, and any other stakeholders to fully utilize interval data; and
3. any additional considerations or implications related to the costs, benefits, and feasibility of upgrading each EDC’s load settlement system to enable use of AMI interval usage data for load settlement in the ISO-NE energy and ancillary services markets.
The DPU will investigate the costs, benefits, and feasibility of enabling the use of residential and small commercial and industrial (C&I) customers’ AMI interval usage data to settle load with ISO-NE, and sought comment on mechanisms and alternative pathways to achieve such settlement
The DPU issued several questions and topics for comment
Notably, the DPU directed electric utilities, retail suppliers, and non-LSE third-party energy service providers to discuss potential "cost-sharing" methods, with the DPU specifically describing such potential "cost-sharing" mechanisms as, "sharing costs between suppliers and ratepayers," in order to minimize ratepayer costs associated with any necessary investments to enable the use of AMI interval usage data to settle load with ISO-NE.
The DPU directed the EDCs to calculate the bill impacts to customers for any costs that the EDCs propose to recover from ratepayers
The DPU issued several questions specifically to the electric utilities, including directing the EDCs to report the extent to which an EDC’s current AMI Implementation Plan achieves the first part of the advanced metering functionality definition established in Docket D.P.U. 12-76-B, namely, the collection of customers’ interval usage data, in near real time, usable for settlement in the ISO-NE energy and ancillary services markets
The DPU also directed the EDCs to report on:
• the timing of implementation of the AMI data repository discussed in D.P.U. 26-20, D.P.U. 26-21, and D.P.U. 26-22, any potential use of the AMI data repository for load settlement with ISO-NE; and
• any efficiencies from coordinating the planning and deployment of the AMI data repository with the use of AMI interval usage data for load settlement with ISO-NE.
The DPU directed the EDCs to report on the timeline required to implement upgrades or modifications to enable ISO settlement using AMI interval data, and to provide the total estimated cost of upgrades or modifications
The DPU directed both retail electric suppliers and the EDCs to discuss the potential benefits to customers and the distribution grid of using AMI interval usage data for load settlement in the ISO-NE energy and ancillary services markets as it relates to:
a. reducing peak demand by enabling retail suppliers, municipalities, and third-party energy service providers to offer time-differentiated or behavior-based energy products (e.g., TVR, demand response incentives, and participation in virtual power plants) to residential and small C&I customers in Massachusetts;
b. enabling capacity tag calculations to reflect customer energy usage more accurately;
c. providing additional granularity and accuracy to ISO-NE and other parties involved in developing load forecasts;
d. improving customers’ understanding and control over their electric bills; and
e. other benefits (e.g., cost savings to customers, reduction in peak demand, deferred infrastructure investments due to reduction in peak demand)
Retail suppliers were also directed to describe any limitations, arising from the current system for load settlement, on retail electricity suppliers’ ability to offer time-differentiated or behavior-based energy products (e.g., TVR, demand response incentives, participation in virtual power plants, calculation of installed capacity tags, etc.) to residential and small C&I customers
Retail suppliers were invited to share experiences and customer benefits witnessed in other states from AMI-based load settlement
Docket D.P.U. 26-44
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-- Regulator Raises Potential For "Sharing Costs Between Suppliers And Ratepayers" For Any Needed System Upgrades
Regulator Opens Investigation To Allow ISO Load Settlement Based On AMI Data, To Enable Retail Supplier Dynamic Pricing
March 12, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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