FERC Approves ISO New England as Independent Reviewer of Transmission Replacement Projects

The Federal Energy Regulatory Commission has approved a proposal designating ISO New England as the independent reviewer of asset condition projects, establishing a new oversight process for transmission infrastructure replacement and reconstruction across the region, according to an Oct. 20 press release from the grid operator. The order, issued on Oct. 16, establishes an independent review of projects intended to address aging, obsolete, or deteriorating transmission facilities.

ISO New England submitted the proposal with FERC in August, responding to requests from New England states and regional stakeholders. Under the arrangement, the grid operator will review asset condition projects proposed by transmission owners to replace or reconstruct facilities that have reached the end of their useful lives or become obsolete.

The initiative establishes a first-of-its-kind approach to reviewing transmission infrastructure investments in the U.S. By assigning the assessment role to the regional grid operator, the framework establishes an independent review process for projects that would otherwise be proposed by transmission owners. The measure reflects efforts by state officials and regional stakeholders to introduce a formal review mechanism for these investments.

FERC Commissioners David Rosner and Judy Chang supported the proposal in statements accompanying the order, highlighting the extensive stakeholder engagement that led to its development. They also encouraged other regions to consider adopting similar processes. The proposal’s significance extends beyond New England, as its approach could inform how other regional grid operators assess transmission replacement projects.

The changes to ISO New England’s tariff and Transmission Operating Agreement governing the independent review function will take effect Jan. 1, 2027. The revisions will formalize the grid operator’s responsibilities under the new arrangement.