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New England companies facing additional energy costs as FERC
accepts program proposal

ISO New England and the New England Power Pool (NEPOOL) filed a proposal with the Federal Energy Regulatory Commission (FERC) to implement a revised Winter Reliability Program for the upcoming 2014/2015 winter season. On September 9th, FERC accepted the proposal.

This program will be considered a standard pass-through charge for New England customers, as it was last year. The charge will be displayed on the energy bill as a separate line item for the program period. Most suppliers will choose to pass through the actual program cost to the end-user once the ISO unveils the actual program rates. Since those rates are not yet determined, as companies look to execute an energy contract, many suppliers can provide an estimate Winter Reliability cost on a Kilowatt-hour basis using last year’s costs. It is believed that this season’s Winter Reliability rates will be on par with the previous year, or slightly higher depending on the severity of the season. Customers should be aware of this additional charge, understand how it could affect their total supply cost, and budget accordingly.

For more information about this year’s Winter Reliability Program click here.

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