Climate Change. It’s Definitely in the Scope.
We sent hundreds of official comments to the Federal Energy Regulatory Commission (FERC) about the forward capacity auction that gives millions of dollars in advance payments to fossil fuel plants in our region and yet, ISO-NE continues to claim that climate change is “outside the scope of the proceedings.” We disagree, so we’re putting pressure on ISO to change - or get out of the way.
Our regional energy grid operators (ISO-NE) subsidize fossil fuels using ratepayer dollars.
Currently, 10-20% of our electric bills go towards this mechanism - called “Forward Capacity Payments.”
We are pushing against this outdated and harmful system that perpetuates the climate crisis.
UPCOMING EVENTS
Demand Response Webinar - Monday, March 4th at 7:00pm
Come learn about the basics of ISO-NE, our energy grid operator, and the demand response mechanism they don’t use enough.
Consumer Liaison Group Meeting - next meeting is March 6th in Portland, Maine!
12:00-3:30pm in person in Portland, or 12:30-3:30pm online
Sign up for our email list and we’ll send you the registration link once it opens.
What is ISO-NE ?
The New England power grid is run by an entity called the “Independent Systems Operator - New England,” which you’ll usually see written as ISO-NE. ISO-NE goes to great lengths to brand themselves as a neutral party in our regional energy system. They claim that New England states are the ones responsible for creating energy policy.
However, ISO-NE designs and runs the regional energy markets, and has a LOT of say in where our power comes from. In 2019, a group of New England Senators wrote to ISO-NE that their current policies do not support the region’s climate and environmental goals. ISO-NE’s “Forward Capacity Payments” are currently used to subsidize fossil fuels in the name of “grid reliability.” ISO-NE makes these financial commitments to energy generators (including coal, oil, and gas plants, and a smaller fraction to renewable generators) three years in advance. This system is intended to provide redundancy, making sure there is always extra energy on the grid and helping avoid disastrous outages.
Current methods of deciding who receives these payments disadvantage renewables, which would often economically out-compete fossil fuels on longer timelines. Further, the system fails to account for ‘externalities,’ or the downstream health and environmental impacts of extracting and burning coal, oil, and gas. On average, 10-20% of our electric bills go to fossil fuel subsidies through this mechanism, unbeknownst to ratepayers. The fact that our ratepayer dollars subsidize legacy fossil-fuel generators is actively destructive: it sets New England up for failure in meeting our much-needed emissions reduction goals.
In 2018 alone, the Merrimack Generating Station in Bow, New Hampshire received $50 Million in subsidies and ISO-NE has committed tens of millions of dollars more over the next several years. These subsidies will allow the station to keep its dirty climate changing emissions pouring into the atmosphere and poisoning those who live nearby.
We urge ISO-NE to heed the calls of experts across the region and align their business model with the common good. The science is clear: we must rapidly transition to renewable energy to mitigate the effects of climate change on our communities and build systems resilient to our climate future. Climate change is a justice issue demanding ISO-NE’s immediate action.
Running a system that needlessly subsidizes fossil fuels isn’t neutral. Choosing to prop up dirty old coal plants with the money from our electrical bills is not neutral. And as we continue our campaign to shut down Merrimack Station, we’ll be pushing against ISO-NE’s outdated and harmful systems that perpetuate climate change on our dime. ISO-NE’s current methods may make short-term economic sense for a few, but in the larger analysis, they’re morally bankrupt. It is past time for us to re-prioritize what we subsidize, leave fossil fuels in the past, and invest in our collective future.
What is the Consumer Liaison Group?
The Consumer Liaison Group is a Forum for the exchange of information between ISO New England and electricity consumers in New England. Meetings used to be mostly made up of state consumer and ratepayer advocates, state business and industry associations, chambers of commerce, individual businesses, and trade groups. In 2022 we staged a “Ballroom Coup” and elected a slate of No Coal No Gas supporters to the coordinating committee of this group. Since then, we’ve pushed for the meetings to happen in community spaces instead of hotel ballrooms, pushed for frontline voices to be heard by ISO, and questioned ISO-NE employees about the scope of their role in our clean energy transition.
Meetings happen four times a year in various locations across New England and we hope you’ll join us at the next one! ISO-NE NEEDS to hear from us ratepayers.
