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Billing Terms

The cost of energy provided by generating facilities as dispatched by ISO-NE. On the Initial billing, the energy charge is equal to the product of the hourly Day Ahead Locational Marginal Price (DA-LMP) or Real Time Locational Marginal Price (RT-LMP) for the applicable zone and the associated usage in each hour, summed for all hours of the specified period. These amounts may be adjusted on a Resettlement billing to reflect any Real Time Market adjustments as billed by the ISO-NE and allocable to the specified billing period.

Various indirect energy or energy-related costs to operate the electric grid. Market rules govern how these costs are calculated by the ISO-NE.

The New England Power Pool (NEPOOL) and ISO-NE set a total capacity requirement for the grid based on the previous year’s peak demand. Each meter is assigned an ICAP tag that expresses that meter’s contribution to the peak, which is used to calculate a monthly charge to pay for grid capacity requirements. The customer’s capacity tag resets each June 1 and runs to the following May 31.

The cost of Renewable Energy Credits (RECs) procured to meet the applicable state’s Renewable Portfolio Standards (RPS), which mandate the percentage of electric load that must come from renewable resources.

Voluntary Green
The cost of additional RECs, procured on behalf of and at the direction of customer, to meet customer’s renewable energy requirements in excess of the state-mandated RPS requirements.

In the transmission and distribution system, energy is lost due to resistance and other factors. Each utility establishes a line loss factor to account for these losses, which is then applied to metered usage to calculate a grossed-up usage amount. This charge reflects the additional costs that arise from this calculation.

AE Fee
A charge to cover the Company’s costs to provide service to customers, including but not limited to: data management, billing, web services, technology development and maintenance, sales and marketing, administration, financing, and margin.

Industry Terms