Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: ENERGY ADMIN. SERVICES

  total $101,325,568 · related or exempt $101,325,568

• 2b · Program service revenue: RELIABILITY ADMIN. SER

  total $64,891,237 · related or exempt $64,891,237

• 2c · Program service revenue: SCHEDULING SYSTEM CONT

  total $43,611,105 · related or exempt $43,611,105

• 3 · Investment income

  total $984,013 · related or exempt $786,862 · excluded $197,151

• 7a · Gross sales of assets other than inventory

  other assets $1,475

• 7b · Less cost or other basis and sales expenses

  other assets $0

• 7c · Gain or loss

  other assets $1,475

• 7d · Net gain or loss

  total $1,475 · excluded $1,475

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $17,900 · program services $17,900

• 5 · Compensation of officers, directors and key employees

  total $17,189,694 · program services $11,503,146 · management and general $5,686,548

• 6 · Compensation of disqualified persons

  total $403,221 · program services $403,221

• 7 · Other salaries and wages

  total $80,187,155 · program services $71,294,399 · management and general $8,892,756

• 8 · Pension plan contributions

  total $13,885,284 · program services $12,345,406 · management and general $1,539,878

• 9 · Other employee benefits

  total $9,399,135 · program services $8,315,162 · management and general $1,083,973

• 10 · Payroll taxes

  total $6,098,400 · program services $5,422,087 · management and general $676,313

• 11b · Fees: legal

  total $1,589,474 · program services $1,179,555 · management and general $409,919

• 11c · Fees: accounting

  total $582,191 · program services $381,251 · management and general $200,940

• 11f · Fees: investment management

  total $159,737 · program services $142,022 · management and general $17,715

• 11g · Fees: other

  total $17,002,235 · program services $15,298,093 · management and general $1,704,142

• 13 · Office expenses

  total $2,214,870 · program services $1,867,792 · management and general $347,078

• 14 · Information technology

  total $19,097,634 · program services $17,822,067 · management and general $1,275,567

• 16 · Occupancy

  total $6,515,423 · program services $5,969,869 · management and general $545,554

• 17 · Travel

  total $808,891 · program services $709,419 · management and general $99,472

• 19 · Conferences, conventions and meetings

  total $597,267 · program services $533,273 · management and general $63,994

• 20 · Interest

  total $1,350,039 · program services $1,350,039

• 22 · Depreciation, depletion and amortization

  total $25,047,285 · program services $24,843,279 · management and general $204,006

• 23 · Insurance

  total $354,706 · program services $237,364 · management and general $117,342

• 24a · Other expenses: NORTH AMERICAN ELECTRIC

  total $6,306,871 · program services $6,306,871

• 24b · Other expenses: DUES AND SUBSCRIPTIONS

  total $1,549,304 · program services $1,177,234 · management and general $372,070

• 24c · Other expenses: RECRUITMENT EXPENSES

  total $159,710 · program services $141,998 · management and general $17,712

• 24d · Other expenses: NORTHEAST POWER COORDIN

  total $122,875 · program services $122,875

• 24e · All other expenses

  total $174,097 · program services $156,094 · management and general $18,003

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $4,413 · end of year $4,413

• 2 · Savings and temporary cash investments

  beginning of year $160,672,315 · end of year $178,311,998

• 4 · Accounts receivable

  beginning of year $34,448,111 · end of year $34,283,250

• 9 · Prepaid expenses and deferred charges

  beginning of year $85,375,464 · end of year $34,860,035

• 10a · Land, buildings and equipment: cost or other basis

  $488,435,206

• 10b · Land, buildings and equipment: accumulated depreciation

  $381,710,536

• 10c · Land, buildings and equipment, net

  beginning of year $100,210,697 · end of year $106,724,670

• 15 · Other assets

  beginning of year $279,933,997 · end of year $378,372,681

• 17 · Accounts payable and accrued expenses

  beginning of year $35,076,289 · end of year $47,186,401

• 19 · Deferred revenue

  beginning of year $47,728,524 · end of year $50,342,874

• 20 · Tax-exempt bond liabilities

  beginning of year $42,890,517 · end of year $39,726,228

• 21 · Escrow or custodial account liability

  beginning of year $409,467,838 · end of year $519,780,799

• 24 · Unsecured notes and loans payable

  beginning of year $49,984,430 · end of year $49,993,735

• 25 · Other liabilities

  beginning of year $75,497,399 · end of year $25,527,010

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $0 · end of year $0

• 31 · Retained earnings, endowment or other funds

  beginning of year $0 · end of year $0

The filer's explanations (Part III)

PART I, LINE 1A

IN MARCH 2022, THE PRESIDENT AND CHIEF EXECUTIVE OFFICER RECOMMENDED TO THE ISO NEW ENGLAND BOARD OF DIRECTORS, AND BOARD SUBSEQUENTLY APPROVED AND AUTHORIZED A ONE-TIME BONUS PAYMENT OF $1,000 THAT WAS GROSSED UP FOR TAX PURPOSES TO ALL EMPLOYEES EXCEPT THE COMPANY'S OFFICERS. HOWEVER, LORRAINE BRADY, WHO IS THE ASSISTANT SECRETARY, DID RECEIVE THE BONUS. THE $1,000 BONUS AND TAX GROSS UP BENEFIT PAID INCLUDED KEY EMPLOYEES AND HIGHEST COMPENSATED EMPLOYEES, REPORTED ON PART VII SECTION A. DURING 2022 THREE ISO NEW ENGLAND KEY EMPLOYEES WERE RECOGNIZED FOR AN EMPLOYEE RECOGNITION AWARD UNDER THE COMPANY'S EMPLOYEE RECOGNITION PROGRAM. THE TAXABLE EMPLOYEE RECOGNITION PROGRAM IS AVAILABLE TO ALL EMPLOYEES WITH EXCEPTION OF THE CEO, EXECUTIVE/SENIOR VICE PRESIDENTS, AND VICE PRESIDENTS. THE EMPLOYEE RECOGNITION PROGRAM RECOGNIZES EMPLOYEE ACHIEVEMENTS OR ACCOMPLISHMENTS THAT CONTRIBUTE TO THE OVERALL OBJECTIVE OF THE BUSINESS. IT ENCOURAGES EMPLOYEES TO EXCEL IN ISO CORE COMPETENCIES, EITHER INDIVIDUALLY OR THROUGH TEAMS. EACH OF THESE AWARDS HAD AN AFTER TAX VALUE OF $150 AND A RELATED APPROXIMATE $64 TAX GROSS UP.

PART I, LINE 3

COMPENSATION IS APPROVED IN ADVANCE BY THE BOARD OF DIRECTORS (THE "BOARD"). SCHEDULE O, FORM 990, PART VI, SECTION B, LINE 15 PROVIDES A COMPLETE DESCRIPTION OF THE ESTABLISHMENT OF COMPENSATION FOR ISO NEW ENGLAND'S CHIEF EXECUTIVE OFFICER, AND OTHER OFFICERS OF THE COMPANY.

PART I, LINE 7

ISO NEW ENGLAND CURRENTLY ADMINISTERS TWO INCENTIVE COMPENSATION PLANS THAT BOTH PROVIDE FOR NON-FIXED PAYMENTS: AN ANNUAL PERFORMANCE INCENTIVE PLAN (THE "API PLAN") AND A LONG-TERM INCENTIVE PLAN (THE DEFERRED PERFORMANCE INCENTIVE PLAN, "DPI PLAN"). SUBJECT TO CERTAIN ELIGIBILITY CRITERIA, MOST EMPLOYEES MAY RECEIVE AN API PLAN AWARD BASED UPON A FORMULA THAT TAKES INTO ACCOUNT ORGANIZATIONAL PERFORMANCE, INDIVIDUAL PERFORMANCE, ANNUAL BASE PAY (AS DECEMBER 31ST OF THE PLAN YEAR) AND A GRADE-RELATED SALARY PERCENTAGE. ORGANIZATIONAL PERFORMANCE IS MEASURED BY THE BOARD OF DIRECTORS OF ISO NEW ENGLAND (THE "BOARD") AGAINST GOALS AND OBJECTIVES DEVELOPED BY THE COMPENSATION AND HUMAN RESOURCES COMMITTEE OF THE BOARD (THE "COMMITTEE"), OTHER BOARD COMMITTEES, AND THE BOARD AT THE COMMENCEMENT OF EACH PLAN YEAR. THE INDIVIDUAL PERFORMANCE OF AN OFFICER IS EVALUATED BY THE COMMITTEE AND THE BOARD. THE FINAL API PLAN AWARD FOR AN OFFICER IS CALCULATED AND PAID ONCE THE BOARD DETERMINES THE SCORES FOR ORGANIZATIONAL PERFORMANCE AND INDIVIDUAL PERFORMANCE FOR THE PLAN YEAR. FOR EXAMPLE, PURSUANT TO THE TERMS OF A SETTLEMENT AGREEMENT WITH THE FEDERAL ENERGY REGULATORY COMMISSION'S OFFICE OF ENFORCEMENT, THERE WAS A REDUCTION TO THE API PAYMENTS MADE TO OFFICERS IN MARCH 2023 TO PAY FOR A PENALTY THAT WAS PAID BY ISO NEW ENGLAND INC. IN OCTOBER 2022. THE DPI PLAN AWARDS ARE AVAILABLE TO OFFICERS AND ARE BASED UPON THE ACHIEVEMENT OF ORGANIZATIONAL AND INDIVIDUAL LONG-TERM GOALS ESTABLISHED BY RECOMMENDATIONS OF THE COMMITTEE (WITH INPUT FROM OTHER BOARD COMMITTEES) AND WITH THE APPROVAL OF THE BOARD. SIMILAR TO THE API PLAN, THE DPI PLAN AWARDS ARE CALCULATED USING AN ELIGIBLE EMPLOYEE'S BASE SALARY IN EFFECT AS OF DECEMBER 31ST OF THE PLAN YEAR AND A GRADE-RELATED SALARY PERCENTAGE; HOWEVER, DPI PLAN AWARDS GENERALLY ARE PAID TWO AND ONE-HALF YEARS AFTER THE END OF THE PLAN YEAR. THE BOARD ASSESSES THE PERFORMANCE OF THE ORGANIZATION AND THE INDIVIDUAL AT THE END OF EACH PLAN YEAR, AND REASSESSES THE ORGANIZATION'S PROGRESS TOWARDS ITS LONG-TERM GOALS AND OBJECTIVES TWO AND ONE-HALF YEARS LATER, IMMEDIATELY PRIOR TO THE CALCULATION AND PAY-OUT OF THE DPI PLAN AWARD. UNDER BOTH PLANS, ISO NEW ENGLAND RESERVES THE RIGHT TO REDUCE OR ELIMINATE PLAN AWARDS IF THE ELIGIBLE EMPLOYEE OR THE ORGANIZATION UNDERPERFORMS OR THERE IS A MAJOR COLLAPSE OF THE BULK ELECTRIC POWER SYSTEM MANAGED BY ISO NEW ENGLAND.