Federal regulators are investigating whether a natural gas-fired power plant outside Boston misled ISO New England, the region’s power grid operator. They’re also investigating ISO New England's fraud detection process as part of the incident.
The Federal Energy Regulatory Commission is investigating whether Salem Harbor Power Development failed to provide accurate and complete information to ISO New England before it began operation.
The power plant missed its goal to begin operation in 2017, but still collected payments under market rules that existed at the time. Federal regulators said the plant deceived the ISO and the market into believing it could meet its goal so it would still get payments.
Regulators are also investigating ISO New England, saying the operator should have discerned the fraud and gave the plant advice that allowed it to avoid consequences. ISO New England denied the allegations.
