October 17, 2019

FERC Decides in Favor of Energy Storage Industry

Today the Federal Energy Regulatory Commission issued an order that PJM must place rules regarding the capacity qualification of energy storage resources in its tariff, siding with ESA’s complaint that such rules materially affect the rates, terms, and conditions of capacity market service. In a further win, FERC opened a new proceeding to determine whether PJM’s proposed 10-hour duration for qualifying energy storage capacity is unjust, unreasonable, unduly discriminatory or preferential, as a direct response to ESA’s complaints and commissioned study on the capacity value of storage in PJM. ESA is pleased with the outcome and looks forward to working with members and allied stakeholders in the subsequent docket to ensure adequate access to PJM’s capacity market.

“FERC’s decision today is a tremendous step in fully removing barriers to energy storage in wholesale markets and implementing the intent of Order 841,” said ESA’s CEO Kelly Speakes-Backman. “If consumers are to benefit from cost savings storage can bring, grid operators must appropriately value that contribution, as intended by Order 841. We commend the leadership of Chairman Chatterjee and the entire Commission for defending market competition and clearing regulatory hurdles for energy storage.”

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