FERC Approves an ISO-NE Reviewer for $5 Billion of Utility-Planned Transmission Replacement Projects
- FERC & Federal Policy & Markets Regulatory
Marin Holt
- 0
- 7 minutes read
- FERC approval: Oct. 16, 2026
- Asset condition pipeline: About $5 billion by 2034
- Planned next year: About $1.3 billion
- Formal reviewer role starts: January 2027
The Federal Energy Regulatory Commission (FERC) on Oct. 16, 2026, approved a process for ISO New England (ISO-NE) to review “asset condition” transmission projects. Utilities plan these projects to repair or replace aging transmission equipment, and they have received little regulatory oversight. New England transmission owners expect to add about $5 billion of them by 2034. About $1.3 billion of that comes next year, according to a June ISO-NE presentation.
Under the plan, ISO-NE will review each project and report its conclusions on need, cost-effectiveness and potential alternatives. ISO-NE already acts as an interim reviewer for some projects this year. It plans to take on the formal advisory role in January 2027. ISO-NE, the NEPOOL Participants Committee and the committee of participating transmission owners filed the plan jointly on Aug. 17, 2026 (MGRID covered the filing).
FERC said the reviewer “will help bring greater visibility into the need for and planning of Asset Condition Projects in ISO-NE.” In separate concurring statements, Commissioners David Rosner and Judy Chang urged other grid operators to adopt similar reviews. Chang said regions should also review “other types of local transmission projects.”
The Interim Reviews Already Changed Two Projects
Eversource withdrew one of the two projects that ISO-NE examined as interim reviewer. Last month, Eversource also paused its plans for an $82.4 million project near Boston. An ISO-NE consultant had found that Eversource failed to show the project was needed in the near term. Eversource pushed back. It said a test based on evidence of deterioration sets a bar a utility “cannot meet without experiencing the very failure” the program aims to prevent.
Donald Kreis, the New Hampshire Consumer Advocate, said he is “cautiously optimistic.” He added: “I hope this heralds the end of unconstrained asset condition spending in New England.”
What the Order Does Not Do
The role is advisory. ISO-NE reviews the projects and reports its conclusions. The utilities still plan the projects. The concurring statements from Rosner and Chang do not bind any other grid operator.
Why It Matters
Asset condition work is most of the regional transmission budget. The New England States Committee on Electricity (NESCOE) filed comments with FERC. It cited an ISO-NE forecast of $5.3 billion for asset condition projects. The same forecast shows just $281 million for reliability projects. NESCOE said 95 percent of future regional transmission spending goes to projects with little regional oversight.
The same dispute runs outside New England. In PJM, these are called “local” projects. The Ohio ratepayer advocate says Ohio utilities have planned more than $4.3 billion in local transmission with inadequate oversight. In May, New England ratepayer advocates filed a FERC complaint over a roughly $360 million Eversource project in New Hampshire. The first test of the permanent reviewer comes in January 2027. Watch whether its findings change what utilities build, or only what they disclose.
Critical Perspective
FERC approved a reviewer for about $5 billion of asset condition work, with $1.3 billion due next year. The review is advisory. A utility that rejects an ISO-NE finding still plans the project. Eversource backed off twice in the interim reviews, yet it still calls the need test impossible to meet. In Ohio, a consumer complaint on local transmission sat at FERC for three years while utilities planned over $4.3 billion. When the permanent reviewer says no in 2027, who has the power to stop the spending?
Sources
- Utility Dive: FERC approves ISO-NE asset condition transmission review process (Oct. 19, 2026)
- ISO New England: Asset Condition Reviewer key project
- NESCOE: Comments to FERC on the Asset Condition Reviewer filing (Sept. 2026)
