FERC Issues Order on Electric Storage Participation in Regional Markets
- Filter By Electric Reliability Law Blog
On February 15, 2018, in Docket Nos. AD16-20-000 and RM16-23-000, FERC issued an order adopting reforms to remove barriers to the participation of electric storage resources in Regional Transmission Organization (RTO) and Independent System Operator (ISO) markets. FERC is requiring each RTO and ISO to revise its tariffs to establish a participation model implementing market rules that facilitates the participation of electronic storage resources in the RTO and ISO markets. The participation model must (1) ensure that a resource using the participation model is eligible to provide all capacity, energy, and ancillary services that the resource is technically capable of providing in the RTO/ISO markets; (2) ensure that a resource using the participation model can be dispatched and can set the wholesale market clearing price as both a wholesale seller and wholesale buyer consistent with existing market rules that govern when a resource can set the wholesale price; (3) account for the physical and operational characteristics of electric storage resources through bidding parameters or other means; and (4) establish a minimum size requirement for participation in the RTO/ISO markets that does not exceed 100 kW. FERC has issued this order pursuant to legal authority under Section 206 of the Federal Power Act (FPA).
To view FERC’s order, click here.
To view the Press Release, click here.