FERC has initiated a show cause proceeding based on concerns about the lack of provisions in ISO-NE‘s tariff enabling fixes to incorrect payments to or from market participants.

The order, issued March 10, comes following multiple recent requests from participants for waivers to return improperly accrued funds to the RTO.

The commission wrote the ISO-NE tariff “appears to be unjust and unreasonable because it lacks provisions that would enable ISO-NE to return amounts that it erroneously charged to market participants and to accept payments from market participants that were erroneously or improperly received in ISO-NE’s markets.”

FERC established settlement procedures in 2024 for a waiver request by Canal Marketing to return improperly accrued funds from the RTO’s Inventoried Energy Program. The commission approved a settlement between ISO-NE and Canal in early 2025. (See FERC Establishes Settlement Procedures for ISO-NE IEP Exit Request.)

In fall 2025, Brookfield Renewable Trading and Marketing requested a waiver to refund ISO-NE for four months of improperly received capacity market revenues. FERC established settlement proceedings for this waiver request on the same date as its show cause order.

ISO-NE has 60 days to justify its existing tariff rules or explain what changes it would make if FERC requires it to make tariff changes addressing the issue.

“If ISO-NE prefers to propose revisions to the tariff on the subject of this order, then it may do so pursuant to its applicable [Federal Power Act] Section 205 filing rights,” FERC added.