Retail Energy Companies, AG Press for Increased Transparency In RTO Transmission Rates

Attorneys General from Massachusetts and Rhode Island, along with PowerOptions, Freedom Energy Logistics, and several consumer advocates sent a letter to ISO-New England and New England electric transmission owners urging the companies to develop a transparent process that allows all stakeholders the opportunity to review, question and challenge proposed transmission rates.

"A revised protocol should also allow parties a meaningful opportunity to question the transmission owners and ISO New England regarding the proposed formula rates and provide a well-defined process to challenge implementation of proposed [Regional Network Service] and [Local Network Service] rates," said Massachusetts AG Maura Healey in the letter.

AG Healey said in the letter that transmission owners should also provide the calculations used to develop their proposed rates to state regulatory commissions, attorneys general and consumer advocacy agencies. The AG also asked that electric transmission owners make available all inputs to transmission rate formula calculations and that they make an affirmative showing that such costs are properly included.

According to Healey, New England customers pay nearly $2 billion per year through the Regional Network Service rate alone, with Massachusetts customers paying approximately 46 percent.

AG Healey said that, "Last week, the AG’s Office presented evidence before a Federal Energy Regulatory Commission (FERC) Administrative Law judge arguing that Eversource Energy, National Grid and their investors are earning too much in profits from power transmission lines and that they are making their excess returns on the backs of ratepayers."