Shortly after the project was conceived last year, an economic study was conducted by London Economics in the fall of 2007, and then updated in March, 2008. The results of modeling alternative “a” above, showed extensive economic benefits to all New England customers primarily through market clearing price reductions. After the initial presentation of the project to ISO-NE in December, extensive stakeholder management was started in February targeting government officials, regulating bodies, and potential supporters.

The Northeast Energy Link was officially submitted to ISO on March 31 requesting an economic study as a Market Efficiency Transmission Upgrade (METU) under Attachment K of the ISO-NE Open Access Transmission Tariff.  Under the Attachment K guidelines, up to three projects are to be identified by ISO and the Planning Advisory Committee (PAC) for a funded study. On April 30, the PAC meeting was dedicated to presentations of the submitted projects and the clarification of the study process by ISO. ISO clarified that the intent is to study broad system needs under “K” and not specific projects. They identified the broad need as an increase in the transfer of new capacity (low cost and low carbon) to southern New England load centers, and recommended that it be evaluated in three studies: 1) increases from northern New England, 2) increases from Canadian sources, and 3) increases from off-shore wind. Establishing the methodology and conducting the economic studies is estimated to take six to twelve months. The key challenge in setting up the economic analysis is expanding the traditional criteria of production cost to include consumer benefits.  ISO also recommended five key study criteria, and the Northeast Energy Link project meets all five.

Attachment N of the Tariff is dedicated to the economic evaluation of specific projects. An economic evaluation under this Attachment has also been requested, but a formal submittal will also be made as the project progresses.  The desired outcome of the review process is the approval of the project as a pool transmission funded (PTF) project in the regional system plan. ISO-NE has formed the Economic Study Process Working Group to help manage the economic studies, and this group kicked off their work on March 26.  Bangor Hydro and National Grid are very active in this working group.

Other federal, state, and local permitting would begin after the ISO process is completed. The in-service target is 2012.