FERC Cuts ISO-NE Scarcity Penalty as Load Queues Snarl
Wednesday, September 2, 2026 · 9 min
FERC accepted ISO-NE’s pay-for-performance rate cut to $3,500/MWh as ERCOT’s data-center Batch Zero slipped and Oklo challenged PJM’s queue removal. Scarcity pricing, large-load growth and interconnection risk are moving from planning spreadsheets into tariffs and dockets.
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Show notes
FERC accepted ISO-NE’s pay-for-performance rate cut to $3,500/MWh as ERCOT’s data-center Batch Zero slipped and Oklo challenged PJM’s queue removal. Scarcity pricing, large-load growth and interconnection risk are moving from planning spreadsheets into tariffs and dockets.
In this episode
- FERC Accepts ISO-NE Pay-for-Performance Rate Reduction — RTO Insider
FERC has accepted a reduction of the ISO-NE pay-for-performance (PFP) rate from $9,337/MWh to $3,500/MWh, finding that the lower rate would provide adequate incentive for capacity resources to perform during scarcity conditions ( ER26-3047 ). ISO-NE has argued that the lower rate would minimize risks that excessive PFP penalties could push older, slow-start fossil resources into retirement. The…
- ERCOT Misses Deadline for Batch Zero Study — RTO Insider
ERCOT has missed a deadline to notify transmission or distribution service providers interconnecting data centers of their customers’ conditional classification status in the Batch Zero study. The grid operator said in an Aug. 31 market notice that it “requires additional time” to complete its data validation and due diligence processes. It said it is delaying the information’s release until…
- Oklo Files FERC Complaint After PJM Removes Project from Interconnection Queue — RTO Insider
Oklo has filed a complaint at FERC alleging PJM violated its tariff by removing a 750-MW generation project from the Cycle 1 interconnection queue ( EL26-101 ). The Aug. 27 complaint argues PJM improperly studied the entire project as an inverter-based resource, despite only the fuel cell component relying on inverters. The project is split between three technologies: 300 MW of fuel cells, 300 MW…
- NYSEG to Pay $80K for NERC Violations — RTO Insider
New York State Electric and Gas will pay $80,000 to the Northeast Power Coordinating Committee as part of a settlement for violating NERC’s reliability standards, according to the ERO’s monthly spreadsheet notice of penalty, approved Aug. 28 by FERC ( NP26-12 ). The SNOP also included a settlement between SERC Reliability and Columbia Water and Light (CWLD), the municipal utility for the city of…
- Ontario Bulk Plans Pair Near-term Builds with Future Transmission Options — RTO Insider
IESO is calling for another wave of transmission development across much of Ontario, including major reinforcements around its largest load centers while preserving additional transmission options for nuclear expansion, industrial growth and significantly higher electricity demand. Bulk planning documents published by IESO on Aug. 20 detail near-term infrastructure development and long-range…