FERC Policy Proposal on Ancillary Service and Electric Storage

On June 16th the Federal Energy Regulatory Commission (FERC) launched an inquiry into how to bring greater competition to markets for supply services that help keep the grid operating smoothly, and how to remove potential barriers to the expanded use of electric storage technologies (Docket Nos. RM11-24-000 and AD10-13-000). Markets in some regions of the country are showing interest in supporting competition for supply services known as ancillary services that typically are offered by transmission providers to help keep the grid operating smoothly. There is concurrent growing interest in removing barriers to the use of energy storage resources, which may benefit consumers by offering multiple services to the grid. Storage technologies can operate in ways that resemble electricity production, transmission and distribution, and can provide a range of services from the discharge of power to supply load to ancillary services such as reactive power or frequency regulation.

FERC's Notice of Inquiry (NOI) focuses on a policy that requires certain competitive ancillary services providers to prove they lack market power before selling their services at market-based rates. Decentralized energy technology, such as quick start natural gas fired power, can be used to provide such services and better allow the integration of intermittent renewable resources. These policy changes could be a positive step for development of additional projects providing ancillary services. .

The NOI also discusses certain accounting and reporting requirements and whether these should be revised.

Comments on the NOI are due August 22.  If you have an interest in filing comments independently or jointly with WADE please contact David Sweet at dsweet@localpower.org or +1 202 667-5600.

The NOI is available at: Ancillary Services NOI.