The New England states aren’t challenging ISO-NE’s request to up its budget by 10%, but they are asking the grid operator to do a better job using metrics to measure its performance.
In a letter to ISO-NE earlier this month, the heads of agencies from each of the six states agreed that the $20 million budget boost, largely for new hiring and capital projects, is “necessary to improve ISO-NE’s function and performance.” (See ISO-NE Wants to Hike its Budget by 10% in 2023.)
They took issue, however, with what they say is a failure by the grid operator to comply with a year-old request to update its use of performance metrics to measure how that money is being spent. Specifically, the states wrote, ISO-NE is not using any of FERC’s common RTO/ISO performance metrics. The grid operator is also not using any performance metrics to determine the cost effectiveness of transmission fixes other than project costs, the states said.
“In both instances, ISO-NE appears to be limiting itself to narrowly defined and tailored metrics that foreclose comparisons across other entities or processes,” the officials wrote. “This limitation appears to have mitigated ISO-NE’s ability to learn from its one competitive transmission fix solicitation since its results cannot be compared with any other process.”
The grid operator defended itself in a reply last week, saying that it does in fact use metrics to measure its performance across a number of areas.
The common metrics that FERC uses, ISO-NE wrote, are less useful than those specifically tailored to the New England region. But the RTO said it will take another look at whether any of them could be useful.
As for transmission planning, ISO-NE noted that its tariff requires that new lines be built only as a last resort after other options have been considered. “The ISO will continue to monitor its performance in this area,” it said.