Understanding ISO New England’s Day-Ahead Ancillary Services (DASI)

And Specifically What It Means for Energy Prices.

Across New England, businesses are seeing electricity rates rise once again — and this time, it’s not limited to a single supplier or contract term. The increases are coming from systemwide changes in how the regional power grid operates.

One of the most significant factors behind these shifts is a new initiative from ISO New England called the Day-Ahead Ancillary Services Initiative (DASI). This program represents an important evolution in how our region manages electric reliability — and while it brings long-term benefits for grid stability and clean energy integration, it’s also contributing to higher wholesale electricity costs today.

At Titan Energy, we believe in helping our customers not only manage their energy costs, but also understand what’s driving them. Here’s a breakdown of what’s happening, why it matters, and how we can help you navigate these changes strategically.

What Is ISO New England?

ISO New England (ISO-NE) is the independent, nonprofit organization that operates the electric grid for the six New England states. Their job is to make sure that electricity supply always matches demand and that the grid remains reliable — even when unexpected events occur, like a power plant going offline or extreme weather pushing demand to new highs.

To do this, ISO-NE runs a wholesale electricity market, where suppliers and generators buy and sell electricity and various “support” services that keep the grid balanced.

What Are Ancillary Services?

When you flip on a light, electricity flows instantly — but behind the scenes, the grid must continuously adjust to keep supply and demand perfectly aligned. That’s where ancillary services come in.

These services are the grid’s “support team.” They help maintain stability and reliability by providing:

• Fast-responding backup power in case a generator trips offline

• Frequency control to keep electricity running at the right speed

• Reserve capacity to cover unexpected demand spikes

You rarely notice these services — until something goes wrong. They’re what keep the lights on when the system faces sudden changes.

What Is the Day-Ahead Ancillary Services Initiative (DASI)?

Before DASI, most of these services were purchased and dispatched in real time, meaning the grid often had to react to problems as they happened. That approach worked when most power came from large, steady generators like gas, oil, and nuclear plants.

But today’s grid looks very different. Renewable resources like wind and solar are playing a growing role — which is great for the environment, but they’re naturally more variable. Meanwhile, fewer traditional plants are online at all times, reducing the amount of “built-in” backup power available.

DASI changes that by allowing ISO-NE to secure these support services one day in advance. This proactive system ensures that the right resources are already standing by before the next day begins.

Here’s how it works:

1. One day before: ISO-NE forecasts tomorrow’s demand and reliability needs.

2. Suppliers and asset owners submit offers to provide various ancillary services, such as reserves or fast response.

3. ISO-NE selects the most cost-effective mix of resources to meet the projected needs.

4. Providers are paid for being ready and available — even if their service isn’t ultimately called upon.

The goal is simple: a more reliable, resilient, and forward-looking grid.

Why Are Rates Increasing?

While DASI improves planning and reliability, it also changes how costs are structured. The new system adds additional market layers and reserve requirements, which increase overall wholesale electricity costs.

Because every supplier participates in the same ISO-NE market, these increased costs are built into the prices that suppliers pay — and ultimately, those costs are passed through to end-use customers.

In other words, the recent price increases you may be seeing are not the result of any single supplier’s pricing decision. They reflect a region-wide adjustment to new reliability standards designed to support the future of the grid.

The Long-Term Benefits

It’s important to remember that DASI is not a “bad news” story. While it’s contributing to short-term cost increases, it’s also a critical investment in the region’s energy future.

The initiative will help New England:

• Integrate more renewable energy safely and reliably

• Reduce emergency costs by planning ahead instead of reacting in real time

• Enhance overall grid stability, reducing the risk of blackouts or major disturbances

In time, these changes may help mitigate extreme price volatility and strengthen the energy system we all depend on.

How Titan Energy Can Help

At Titan Energy, we specialize in helping organizations navigate complex energy markets. Systemwide changes like DASI can be confusing and difficult to plan for — but our team is here to ensure you stay informed, proactive, and protected.

Here’s how we can help:

• Market insights: We continuously track regulatory and market developments across New England and break them down in clear, actionable terms.

• Procurement strategy: We help you evaluate contract options that align with your risk tolerance, timing, and budget.

• Data-driven planning: Using advanced analytics, we can model how changes like DASI may impact your future energy costs.

• Sustainability alignment: For organizations pursuing carbon reduction goals, we can identify opportunities to balance clean energy initiatives with cost management.

Whether you’re reviewing your contract, considering a renewal, or simply trying to understand the current market, Titan Energy is your trusted partner in making informed decisions.

The Bottom Line

ISO New England’s Day-Ahead Ancillary Services Initiative represents an important evolution in how our region’s power grid operates. It’s part of a larger shift toward a cleaner, smarter, and more resilient energy system.

While the near-term effect is higher electricity costs across the board, the long-term benefits — improved reliability, better integration of renewables, and more predictable grid operations — will strengthen the foundation of our energy future.

As the market continues to evolve, Titan Energy will remain focused on one thing: helping our customers understand the changes, manage their exposure, and find the best path forward.