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NRG Proposes That ISO-NE "Directly" Allocate Transmission Costs To Retail Suppliers Who Wish To Have That Option (RNS Costs Currently Nonbypassable)
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In comments at the Massachusetts DPU, the NRG Energy Retail Companies said that, "for customers served by municipal aggregators and/or retail suppliers, ISO-NE should allocate transmission costs directly to those municipal aggregators and/or retail suppliers that wish to have that option, rather than to the relevant transmission owners for those customers."
NRG referred to transmission costs generally and did not specify whether NRG was proposing such optional allocation for all ISO-NE transmission costs. ISO-NE's Regional Network Service (RNS) is the largest transmission cost, and currently is not included on the bypassable part of the bill or in default service rates
NRG said that its proposal giving retail suppliers the "option" of direct ISO-NE transmission cost allocation, "is similar to how ISO-NE allocates capacity costs today and how PJM allocates both capacity and transmission costs."
NRG's proposal was made in a Massachusetts DPU proceeding which is reviewing the implementation of time of use rates, including for default service supply
See background on the proceeding here
NRG said that, "If municipal aggregators and retail suppliers were allocated these [ISO-NE transmission] costs, they would be motivated to provide their customers with the products, tools, and insights that would allow customers to reduce usage during these peak hours. As a result, these customers would reduce the transmission portion of their bills, and reduce the amount of transmission that needs to be built in ISO-NE."
"Under the status quo, transmission owners simply pass these costs through to customers. Municipal aggregators and retail suppliers would have additional motivation for enabling customers to manage these costs," NRG said
NRG noted that the DPU and Massachusetts Dept. of Energy Resources do not have jurisdiction over ISO-NE transmission cost allocation, but said that, "the NRG Retail Companies believe there is value in the Department signaling its support for this approach and collaborating with the Massachusetts Federal and Regional Energy Affairs ('FREA') office, NECPUC, NESCOE, and other stakeholders to explore what ISO-NE changes would be necessary to effectuate this recommendation."
Addressing other TOU matters, NRG reiterated the need for Massachusetts utilities to be required to use AMI interval data for ISO-NE load settlement purposes, for retail supplier customers, in order for Massachusetts to realize the benefits of TOU rates
See more details on the load settlement issue here
TOU Docket: 26-62
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September 1, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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