Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

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

  total $115,863,821 · related or exempt $115,863,821

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

  total $70,415,864 · related or exempt $70,415,864

• 2c · Program service revenue: SCH. SYS. CONT. & DISP

  total $47,527,183 · related or exempt $47,527,183

• 3 · Investment income

  total $1,793,188 · related or exempt $1,304,975 · excluded $488,213

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $13,500 · program services $13,500

• 5 · Compensation of officers, directors and key employees

  total $16,914,505 · program services $11,255,476 · management and general $5,659,029

• 6 · Compensation of disqualified persons

  total $257,276 · program services $257,276

• 7 · Other salaries and wages

  total $90,279,092 · program services $81,251,183 · management and general $9,027,909

• 8 · Pension plan contributions

  total $14,424,104 · program services $12,981,694 · management and general $1,442,410

• 9 · Other employee benefits

  total $11,346,191 · program services $10,140,465 · management and general $1,205,726

• 10 · Payroll taxes

  total $6,764,482 · program services $6,088,034 · management and general $676,448

• 11b · Fees: legal

  total $1,228,056 · program services $606,813 · management and general $621,243

• 11c · Fees: accounting

  total $735,376 · program services $515,076 · management and general $220,300

• 11f · Fees: investment management

  total $187,066 · program services $168,359 · management and general $18,707

• 11g · Fees: other

  total $19,349,624 · program services $17,444,468 · management and general $1,905,156

• 13 · Office expenses

  total $2,343,996 · program services $1,972,954 · management and general $371,042

• 14 · Information technology

  total $22,145,598 · program services $21,000,643 · management and general $1,144,955

• 16 · Occupancy

  total $7,547,567 · program services $6,990,746 · management and general $556,821

• 17 · Travel

  total $802,854 · program services $646,999 · management and general $155,855

• 19 · Conferences, conventions and meetings

  total $647,902 · program services $528,868 · management and general $119,034

• 20 · Interest

  total $1,177,708 · program services $1,177,708

• 22 · Depreciation, depletion and amortization

  total $30,034,229 · program services $29,852,433 · management and general $181,796

• 23 · Insurance

  total $373,940 · program services $248,832 · management and general $125,108

• 24a · Other expenses: NORTH AMERICAN ELECTRIC

  total $7,107,173 · program services $7,107,173

• 24b · Other expenses: DUES & SUBSCRIPTIONS

  total $1,498,504 · program services $1,138,065 · management and general $360,439

• 24c · Other expenses: RECRUITING/ADVERTISING

  total $158,591 · program services $142,732 · management and general $15,859

• 24d · Other expenses: NORTHEAST POWER COORD.

  total $153,806 · program services $153,806

• 24e · All other expenses

  total $108,916 · program services $99,930 · management and general $8,986

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 $178,311,998 · end of year $70,007,375

• 4 · Accounts receivable

  beginning of year $34,283,250 · end of year $34,120,967

• 9 · Prepaid expenses and deferred charges

  beginning of year $34,860,035 · end of year $31,421,723

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

  $493,621,363

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

  $383,962,727

• 10c · Land, buildings and equipment, net

  beginning of year $106,724,670 · end of year $109,658,636

• 15 · Other assets

  beginning of year $378,372,681 · end of year $267,890,089

• 17 · Accounts payable and accrued expenses

  beginning of year $47,186,401 · end of year $43,714,720

• 19 · Deferred revenue

  beginning of year $50,342,874 · end of year $47,662,266

• 20 · Tax-exempt bond liabilities

  beginning of year $39,726,228 · end of year $36,560,989

• 21 · Escrow or custodial account liability

  beginning of year $519,780,799 · end of year $317,435,036

• 24 · Unsecured notes and loans payable

  beginning of year $49,993,735 · end of year $49,998,177

• 25 · Other liabilities

  beginning of year $25,527,010 · end of year $17,732,015

• 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

DURING 2023, TWO OF ISO NEW ENGLAND'S FIVE HIGHEST PAID EMPLOYEES (THAT WERE NOT ALSO A CURRENT OFFICER, DIRECTOR, TRUSTEE OR KEY EMPLOYEE) RECEIVED RELOCATION BENEFITS AND RELATED TAX INDEMNIFICATION AND GROSS UP COMPENSATION. ONE OF THESE AWARDS HAD AN AFTER TAX VALUE OF $141,909 AND A RELATED $51,538 TAX GROSS UP, WHILE THE OTHER HAD AN AFTER TAX VALUE OF $109,726 AND A RELATED $38,638 TAX GROSS UP. THE VALUE OF THE BENEFITS RECEIVED DURING 2023 WERE INCLUDED ON THE EMPLOYEE'S IRS FORM W-2 FOR 2023 AS TAXABLE COMPENSATION. ONE KEY EMPLOYEE AND ONE FIVE HIGHEST PAID EMPLOYEE RECEIVED A RETIREMENT GIFT THAT WAS GROSSED UP SO THAT EACH HAD AN AFTER TAX VALUE OF $500 AND RELATED APPROXIMATE GROSS UP OF $165. TWO KEY EMPLOYEES RECEIVED AN 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 $67 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 4A

MARK KARL RECEIVED SEVERANCE PAYMENT IN THE AMOUNT OF $32,753.88.

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. 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.