Brace for dramatic changes in Massachusetts Electricity costs

March – in like a Lion, out like a shock to electricity prices.

Trying time ahead for Massachusetts Electricity consumers if the March 4 tariff date holds.

“The ISO proposes that Market Participants selling Canadian electricity into the ISO-administered market will be assessed the cost of such Import Duties, which the ISO will collect based on the entity’s external transaction sales into New England of the electricity that is subject to the Import Duty. As is discussed in Section V.C of this transmittal letter, this cost allocation is sound under applicable principles of cost causation.”

“17 Over the last five years, approximately 11 percent of New England’s load was served by imported electricity from Canada. New England’s single largest source is the Phase II Interconnection with Quebec, which serves as a major transmission line for the importation of hydroelectric power from Hydro-Quebec. The Phase II Interconnection has a transfer capability of 2,000 MW; however, as the single largest source contingency, flows in excess of 1,200 MW require consultation with the New York Independent System Operator, Inc. (“NYISO”) and PJM Interconnection, L.L.C. Additionally, the planned New England transfer capability will increase to approximately 4,300 MW upon initiation of commercial operation of the New England Clean Energy Connect Interconnection, a 1,200 MW high-voltage direct-current transmission (“HVDC”) line from Quebec that will interconnect in Maine, which is scheduled to occur in early 2026.”

Will be interesting to see how these tariff charges will affect LMP’s at N.E._GEN_SANDY PD where most of the Canadian Electricity is delivered.