New FERC Energy Storage Rule: Framework for Creating Participation Models

On Feb.15, 2018, FERC issued a significant rule to expand the use of battery storage, flywheel and other energy storage resources’ (ESR) participation in regional wholesale markets. FERC determined that “better integration of ESR into the regional transmission organizations and independent system operators (RTO/ISO) markets is necessary to enhance competition and, in turn, help to ensure these markets produce just and reasonable rates.”

The rule represents a substantial step toward incorporating newer storage resources into RTO and ISO markets. The reforms should incent developers to design and invest in new technologies and will present an enhanced opportunity for utilities to deploy more utility-scale storage resources on either the distribution or transmission system.

The new rule requires ISOs to reconsider the structure. ISOs will need to create participation models through a stakeholder process to ensure compensation for characteristics and attributes that energy storage provides but for which it is not being compensated.

Listen as our authoritative panel examines the new rule, its definitions and the framework it lays out. The panel will discuss what the new rule means for the energy industry, and what to expect and prepare for going forward.

1. The new FERC rule and its framework
2. Understanding FERC’s definition of “storage resources”
3. How organized markets are expected to react to the new rules
4. Impact of the rule on further development of resources and/or existing (or new) potential fleets (i.e., peaker units, coal, gas, etc.)
5. Preparing for going forward

The panel will review these and other key issues:

• How does FERC define storage resources and what does that mean?
• What can be expected from the organized markets about the development of rules?
• What impact will the rule have on the further development of resources and/or existing (or new) potential fleets?