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Changes in law that may impact your business

Thank you for trusting us with your energy supply. This page provides a central repository for regulatory changes that may impact your business. We've included current-year changes, as well as an archive, so that you can quickly locate any changes in law that may impact your business.

Changes in law that may impact your business

Thank you for trusting us with your energy supply. This page provides a central repository for regulatory changes that may impact your business. We've included current-year changes, as well as an archive, so that you can quickly locate any changes in law that may impact your business.

2025 Changes in Law

The following information is applicable to any service location(s) you have in the given regions denoted.

Change type/cost component, commodity impact and effective date

ELECTRICITY: New England Independent System Operator (ISO-NE) Ancillary Services
Effective date: March 1, 2025

Utility territory/region impacted

New England Independent System Operator (ISO-NE) territory, which covers MA, CT, RI, VT, and ME.

Explanation of change

As part of their Day-Ahead Services Initiative (DASI), the ISO-NE introduced new ancillary services in the day-ahead market that will help satisfy both the load forecast and contingency reserve requirements for their service territory. The new ancillary services, which compensate generation resources for fulfilling contingency reserve and reliability requirements, went into effect Mar. 1, 2025, and include flexible response services (FRS) and energy imbalance reserves (EIR).

How/when will I see the change

The additional costs associated with the two new ancillary services that comprise the Day-Ahead Ancillary Services Initiative will be presented in a new line item labeled “DASI Adjustment,” beginning with any meter read dates from Mar. 1, 2025, through the end of your contract. Because these costs are estimated each month, once we receive the actual settlements, we will provide a true-up to cover the difference between estimated and actual. The true-ups for these costs will appear in the “Other Charges & Adjustments” section of your invoice approximately four months in arrears of the month they apply to and will be labeled “DASI Adjustment – Month, Year” with the appropriate date criteria displayed.

Change type/cost component, commodity impact and effective date

ELECTRICITY: Network Integration Transmission Service (NITS) cost change
Effective date: January 1, 2025

Utility territory/region impacted

Cost increase: MI: Consumers, Detroit Electric (DTE); IL: Ameren; PA: MetEd, Pennsylvania Electric Company (Penelec), Pennsylvania Power & Light (PPL), Metropolitan Edison (MetEd), Allegheny Power; NJ: Jersey Central Power & Light (JCPL); MD: Allegheny Power, Delmarva Power & Light (DPL); DC: Delmarva (DPL); VA: Dominion; DE: Delmarva Power & Light (DPL)

Cost decrease: NJ: Public Service Electric & Gas (PSEG); PA: Penn Power; MD: Potomac Edison (Pepco); DC: Potomac Edison (Pepco).

Explanation of change

The transmission owners in the PJM and MISO region filed their Formula Rate Annual Update(s), which included transmission rate updates. Specifically, there was a change in the Network Integration Transmission Service (NITS) costs. Reference: MISO Formula Rates and PJM Formula Rates

How/when will I see the change

If you're billed by us: this change in the cost of NITS will be part of a new/existing line item labeled "Transmission Cost Adjustment" in the "Your Service Charges" section of your invoice, beginning with your first invoice that contains billing dates from Jan. 1, 2025, forward. The adjustment rate will cover the difference between the NITS rate that was built into your fixed price/adder (or your last NITS rate change) and the new NITS rate.

If you're billed by your local utility on our behalf: you'll see this change in the cost of NITS as a line item labeled "Transmission Cost Adjustment" on your utility bill with your first invoice that contains billing dates from Jan. 1, 2025, forward.

2024 Changes in Law

The following information is applicable to any service location(s) you have in the given regions denoted.

Change type/cost component, commodity impact and effective date

ELECTRICITY: Network Integration Transmission Service (NITS) cost change
Effective date: June 1, 2024

Utility territory/region impacted

Cost increase: PA: Duquesne Light (DQE); NJ: Atlantic City Electric Co. (AECO); MD: Baltimore Gas & Electric (BGE), Delaware Power & Light (DPL), Potomac Electric Power Co. (PEPCO); DE: Delaware Power & Light (DPL); DC: Potomac Electric Power Co. (PEPCO) Cost decrease: IL: Commonwealth Edison (ComEd)

Explanation of change

The transmission owners in the PJM region filed their Formula Rate Annual Update, which included a transmission rate update. Specifically, there was a change in the Network Integration Transmission Service (NITS) costs. Reference: PJM Formula Rates

How/when will I see the change

If you're billed by us: this change in the cost of NITS will be part of a new/existing line item labeled "Transmission Cost Adjustment" in the "Your Service Charges" section of your invoice, beginning with your first invoice that contains billing dates from June 1, 2024, forward. The adjustment rate will cover the difference between the NITS rate that was built into your fixed price/adder (or your last NITS rate change) and the new NITS rate.

If you're billed by your local utility on our behalf: you'll see this change in the cost of NITS as a line item labeled "Transmission Cost Adjustment" on your utility bill with your first invoice that contains billing dates from June 1, 2024, forward.

Change type/cost component, commodity impact and effective date

ELECTRICITY: ERCOT System Admin Fee increase
Effective date: February 1, 2024

Utility territory/region impacted

ERCOT

Explanation of change

At its open meeting in November 2023, the Public Utility Commission of Texas voted to approve an increase in the Electric Reliability Council of Texas' (ERCOT's) System Administration Fee. ERCOT manages the flow of electric power to more than 26 million Texas customers, representing about 90 percent of the state's electric load. As a non-profit entity, ERCOT is funded by the System Administration Fee.

How/when will I see the change

If you're billed by us: This charge will appear in the "Your Service Charges" section, labeled as "TX-ERCOT Admin Fees – CIL," and will be applied to any invoices that contain meter read dates from February 1, forward.
Although the increase went into effect on January 1, we will not begin applying it until February 1.

Change type/cost component, commodity impact and effective date

ELECTRICITY: Network Integration Transmission Service (NITS) cost change
Effective date: January 1, 2024

Utility territory/region impacted

Cost increase: PA: PPL, Penn Power, Penelec, MetEd, Allegheny Power (WPP); NJ: PSEG, JCPL; IL: Ameren; MD: Allegheny Power; VA: Dominion; MI: Consumers, DTE

Explanation of change

The transmission owners in the PJM and Midcontinent ISOs filed their Formula Rate Annual Updates, which included transmission rate updates. Specifically, there was change (increase) in the Network Integration Transmission Service (NITS) costs. Reference: PJM Formula Rates and MISO Formula Rates

How/when will I see the change

If you're billed by us: this NITS cost increase will be part of a new/existing line item labeled "Transmission Cost Adjustment" in the "Your Service Charges" section of your invoice, beginning with your first invoice that contains billing dates from Jan. 1, 2024, forward. The adjustment rate will cover the difference between the NITS rate that was built into your fixed price/adder (or your last NITS rate change) and the new NITS rate.

If you're billed by your local utility on our behalf: you'll see this NITS cost increase as a line item labeled "Transmission Cost Adjustment" on your utility bill with your first invoice that contains billing dates from Jan. 1, 2024, forward.

2023 Changes in Law

The following information is applicable to any service location(s) you have in the given regions denoted.

Change type/cost component, commodity impact and effective date

ELECTRICITY: Inventoried Energy Program (IEP) added cost
Effective date: Dec. 1, 2023 – Feb. 29, 2024

Utility territory/region impacted

New England (NEISO): CT, MA, RI, ME, NH 

Explanation of change

Since 2018, ISO-NE has taken several steps to plan for adequate generation resources and fuel supply for those generators during the winter months to ensure reliable electricity production during periods of extreme cold weather. One such step was to create the Inventoried Energy Program (IEP) in 2019, which is similar to the Winter Reliability Program of years' past. The IEP is a temporary program that pays certain generators for maintaining energy inventories during the winters of 2023/24 and 2024/25. This—along with keeping certain generators, like Mystic, online beyond their retirement—is part of the ISO's overall fuel security planning approach.

How/when will I see the change

If you're billed by us: IEP charges are passed through as a new/separate line item labeled "Fuel Security - IEP" for any billing dates from Dec. 1, 2023 to Feb. 29, 2024. True-ups on the program costs will occur later in 2024.

If you're billed by your local utility on our behalf: we've applied an increase to your $/kWh energy supply rate to cover the program costs.

Change type/cost component, commodity impact and effective date

ELECTRICITY: ERCOT Contingency Response Service (ECRS) - new charge
Effective date: June 1, 2023

Utility territory/region impacted

ERCOT

Explanation of change

ERCOT Contingency Response Service (ECRS) is a new ancillary service that is procured daily and was created through Nodal Protocol Revision Request (NPRR) 863. The ERCOT Board approved it in February 2019 and for the past several years has been working toward implementing it. ECRS will complement and provide support to the other four procured ancillary services ERCOT uses and is another measure to help keep supply and demand balanced and mitigate real-time operational issues.

How/when will I see the change

This charge will appear in the "Your Service Charges" section, labeled as "ERCOT Cont Reserve Serv (ECRS)," beginning with your July 2023 invoice (June meter read period).

Change type/cost component, commodity impact and effective date

ELECTRICITY: Network Integration Transmission Service (NITS) cost change
Effective date: June 1, 2023

Utility territory/region impacted

Cost increase: PA: PPL, PEPCO, PECO, Duquesne Light; NJ: AECO; IL: ComEd; MD: BGE, DPL; DE: DPL

Explanation of change

The transmission owner in your region filed their Formula Rate Annual Update, which included a transmission rate update. Specifically, there was a change (increase) in the Network Integration Transmission Service (NITS) cost.

Reference: PJM Formula Rates

How/when will I see the change

If you're billed by us: this NITS cost increase will be part of a new/existing line item labeled "Transmission Cost Adjustment" in the "Your Service Charges" section of your invoice, beginning with your first invoice that contains billing dates from June 1, 2023 forward. The adjustment rate will cover the difference between the NITS rate that was built into your fixed price/adder (or your last NITS rate change) and the new NITS rate.

If you're billed by your local utility on our behalf: you'll see this NITS cost increase as a line item labeled "Transmission Cost Adjustment" on your utility bill with your first invoice that contains billing dates from June 1, 2023 forward.

Change type/cost component, commodity impact and effective date

ELECTRICITY: Network Integration Transmission Service (NITS) cost change
Effective date: January 1, 2023

Utility territory/region impacted

Cost increase: PA: MetEd, Penelec; NJ: PSEG; IL: Ameren; MI: DTE

Explanation of change

The transmission owner in your region filed their Formula Rate Annual Update, which included a transmission rate update. Specifically, there was a change (increase) in the Network Integration Transmission Service (NITS) cost.

Reference: PJM Formula Rates

How/when will I see the change

If you're billed by us: this NITS cost increase will be part of a new/existing line item labeled "Transmission Cost Adjustment" in the "Your Service Charges" section of your invoice, beginning with your first invoice that contains billing dates from Jan. 1, 2023 forward. The adjustment rate will cover the difference between the NITS rate that was built into your fixed price/adder (or your last NITS rate change) and the new NITS rate.

If you're billed by your local utility on our behalf: you'll see this NITS cost increase as a line item labeled "Transmission Cost Adjustment" on your utility bill with your first invoice that contains billing dates from Jan. 1, 2023 forward.

Frequently asked questions

Show all answers

A regulatory change (sometimes called a change in law) is any law, tariff, order, rule, tax, decision, or other type of mandate passed by a regulatory body (local, regional, federal, etc.), or a change by any LDC, EDC or ISO that changes the cost to supply your electricity or natural gas. A typical regulatory change will impact the rate (either up or down) associated with a particular energy supply charge or will modify a requirement—such as adding a new, higher solar requirement to a state renewable portfolio standard, that increases or decreases the cost to comply with the standard. Sometimes a new program is put in place and the costs socialized—which can result in a new supply charge.

The most common regulatory changes occur with transmission charges. This happens in part because transmission owners are often required by the system operators under which they operate to file new rate calculations annually or bi-annually. Your transmission costs are comprised of several components and any one of those components can increase or decrease when transmission owners file updated calculations, including: network integration transmission service (NITS), regional transmission expansion plan (RTEP) and transmission enhancement charge (TEC). In addition to transmission costs, renewable portfolio standard, gross receipts tax (GRT), ancillary services (in ERCOT) and demand-based charges, including, capacity and resource adequacy, are often impacted by regulatory changes.

Regulatory changes can impact anyone's business, regardless of who supplies their energy—and they can amount to an increase or decrease in charges. While we make every effort to mitigate regulatory changes that result in cost increases, language in our contracts indicates that we can pass through certain changes in the cost to serve. We are very transparent about these changes, rather than hiding them in other costs and fees. The type of product you have with us will dictate the extent that you may notice (and be notified by us of) these cost changes. For example, customers that have a product that passes through their individual energy supply components at cost (i.e. their invoice has an itemized list of charges each month) will be used to seeing fluctuations in the individual charges/rates from month to month. There is really nothing new that happens when a cost component goes up or down due to a regulatory change because the charge is transparent on the invoice each month. Normally we don't send notifications of a regulatory change to customers who have this type of product. Customers that have a fixed price product that wraps some/all of their retail supply charges into a single fixed price or fixed adder tend to be impacted more by regulatory changes. This is because we must provide reconciliation of the cost change—since all cost components are wrapped into the fixed price or adder—which can mean passing through the net increase or decrease in costs via a new line item or adjusting the fixed price in an amount equal to the increase/decrease. If you're reading this, you likely fall into this category and receive courtesy notifications from us when a regulatory change impacts your business. The information on this website will give you access to any changes that may impact your business. Your service location(s) will determine which regional regulatory change(s) may impact your business.

Helpful terms and definitions for your business

When it comes to the regulatory side of energy supply, things can get confusing with terms and acronyms. Here are some of the most common terms you'll come across in the world of energy regulatory speak.

Ancillary Services: Charges for the services required to support and maintain reliable operation of the electric grid. These charges are based on federally-regulated tariffs.

Burnertip: A reference point (i.e. the meter at your home or business) for measuring and billing natural gas supply. If you are being served by a retail supplier for your natural gas and your agreement specifies that your gas is billed at the burnertip, the local distribution company (LDC) fuel costs associated with delivery to the burnertip will be billed by your supplier.

Capacity (unforced: UCAP or installed: ICAP): Capacity is a requirement of the independent system operators (ISOs)/regional transmission organizations (RTOs) in several electricity markets. These charges help guarantee that there will be sufficient generation to meet the maximum energy requirements of the market at all times. The costs associated with these payments are passed through to consumers either by their utility or their retail electric provider and are based in part on your peak demand during the peak demand days (as determined and measured by the ISO).

Change in Law: A change in law or regulatory change is any law, tariff, order, rule, tax, decision, or other type of mandate passed by a regulatory body (local, regional, federal, etc.) that impacts your energy supply costs.

Citygate: A reference point for measuring and billing natural gas supply. If you are being served by a retail supplier for your natural gas and your agreement specifies that your gas is billed at the citygate, you will be billed by your local distribution company (LDC) for fuel charges (see "fuel charges" below).

Congestion: An ISO/RTO charge that is brought about by the limitations of the transmission system. The costs associated with more expensive generation are translated into congestion costs from the ISO/RTO. When available lower-cost supply cannot be delivered to the demand location due to transmission limitations, higher-cost generation closer to the load must be used to meet demand.

Federal Energy Regulatory Commission (FERC): An independent agency within the Department of Energy that regulates the interstate transmission of electricity, natural gas and oil. FERC has jurisdiction over interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, oil pipeline rates and gas pipeline certification.

Fuel charges: Fuel charges, which are part of natural gas supply service, cover the fuel that is lost through the pipeline between the local distribution company (LDC) citygate and the point of delivery (business or residence).

Independent System Operators (ISOs)/Regional Transmission Operators (RTOs): Independent, federally-regulated entities that coordinate regional electricity transmission in a non-discriminatory manner and ensure the safety and reliability of the electric systems in their regions.

Independent System Operator (ISO) Administrative Fee or Grid Management Fee: This fee funds the operations of the ISO in your service area. An ISO operates the interstate power system and coordinates statewide electricity supply.

Losses: A regulated charge that compensates the utility for electricity losses that occur between the point of generation and delivery to your business. It is based on information provided by your utility and ISO/RTO.

Reliability Must Run (RMR): RMR covers the costs for generators to keep their generation units running beyond their scheduled retirement to help maintain reliability of the grid.

Renewable Portfolio Standard (RPS): If your state mandates participation in a renewable energy program, your supplier is required to procure a portion of your power from renewable sources. RPS obligations are common in most states and many suppliers pass the charges associated with RPS compliance on to customers either as a separate charge or as part of an all-inclusive rate.

Transmission charges: are part of the basic electric service charges (regulated) that every customer must pay. These charges cover the cost to move electricity from the generation facility over the transmission lines. Transmission costs are comprised of several components, each of which can change in cost during the course of a year or contract term:

NITS: network integration transmission service

RTEP: regional transmission expansion plan

TEC: transmission enhancement charge