FERC Jurisdiction Over Energy Storage Resources
- May 21, 2019
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Last week FERC denied rehearing in its energy storage resource rulemaking. In rulemaking, FERC had asserted jurisdiction over energy storage resources on the distribution system. Commissioner McNamee dissented (see below) and stated: "...today’s order on rehearing fails to recognize the states’ interests in ESRs located behind a retail meter...or connected to distribution facilities...Order Nos. 841 and 841-A (Storage Orders) are on solid footing when they deal with ESRs connected to the transmission system and how ESRs may participate in the wholesale market...Storage Orders do not fully respect or consider the impact they may have on local distribution systems, the states...and local retail customers..I would have granted the rehearing requests asking to reconsider: (i) its finding that it has jurisdiction over whether ESRs located behind-the-meter or on the local distribution system are permitted to participate in the RTO/ISO markets through the ESR participation model and thereby asserting jurisdiction over distribution facilities; and (ii) its failure to provide states the opportunity to opt-out of the participation model created by the Orders.