Financial Assurance Requirements & Policies Frequently Asked Questions
What forms of financial assurance are available?
Where can I find the Financial Assurance Policy?
What is the process for seeking approval of a Letter of Credit or Guaranty that does not follow ISO New England's template language?
Why do I have to post Initial Financial Assurance if I own a Generator?
How long do I have to cure a 100% or 90% Credit Test default?
What is the penalty for having more than five 100% Credit Test defaults?
Where can I find additional training on the Financial Assurance Policy?
What is the impact of a suspension?
What forms of financial assurance are available?

The following are the four forms of financial assurance available at ISO New England:
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Where can I find the Financial Assurance Policy?

There are different Financial Assurance Policies depending on your customer type.

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What is the process for seeking approval of a Letter of Credit or Guaranty that does not follow ISO New England's template language?

Material changes to template language must be brought before the NEPOOL Budget & Finance Subcommittee. There is a $1,000 fee associated with this process. The fee will be billed on the next non-hourly invoice.

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Why do I have to post Initial Financial Assurance if I own a Generator?

There may be times when you are unable to supply Day Ahead committed resources in Real Time, which would result in settlement obligations. The Initial Financial Assurance requirement is, in part, to cover for this default risk.

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How long do I have to cure a 100% or 90% Credit Test default?

You have five business days to cure a 90% Credit Test default and until noon the following business day to cure a 100% Credit Test default (please note that virtual bids resulting in a Credit Test Percentage (CTP) greater than 99.99% will be rejected with no cure period). Rejected bids cannot be reversed.

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What is the penalty for having more than five 100% Credit Test defaults?

There will be a $1,000 penalty for each default event subsequent to the issuance of the fifth default notice in a 12-month rolling period.

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Where can I find additional training on the Financial Assurance Policy?

Financial Assurance and Billing Policy Changes

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What is the impact of a suspension?

Details of the suspension process are described in the following documents:
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