New FERC Energy Storage Rule

The Federal Energy Regulatory Commission (FERC) unanimously voted to pass a new rule, Order 792, called the Small Generator Interconnection Agreements and Procedures. This revision specifically adds energy storage to resources eligible to interconnect to the power grid under the Small Generator Interconnection Procedures (SGIP) and/or Fast Track Process.  The agreement amends Order 2006 that established terms and conditions for public utilities to provide “just and reasonable interconnection service for small generators.”

The rule, which was announced on Nov 22, also clarifies how to measure the size of a storage device for determining SGIP and Fast Track eligibility. “These reforms are good news for storage project developers and further facilitate the deployment of storage on the power grid,” said Darrell Hayslip, Chair of ESA, the Energy Storage Association.

Back on July 18, 2013, FERC also issued Order 784, which revises the Avista policy, which regulates ancillary-service sales at market-based rates to public utility transmission providers.  The rule aims to increase competition and transparency, specifically by requiring public utility transmission providers to consider two additional parameters – speed and accuracy – when assessing regulation resources.

To read the full release from the Electricity Storage Association cited in this story, click here


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