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ARTICLE · 22 JULY 2020

D.C. Circuit Backs FERC On Electric Storage Rule

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The U.S. Court of Appeals for the D.C. Circuit recently upheld the Federal Energy Regulatory Commission's (FERC or "Commission") Order No. 841, a 2018 rulemaking addressing electric storage resources.

United StatesEnergy and Natural Resources
George (Chip) Cannon Jr.
George (Chip) Cannon Jr.
John Michael White
John Michael White
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The U.S. Court of Appeals for the D.C. Circuit recently upheld the Federal Energy Regulatory Commission's (FERC or "Commission") Order No. 841, a 2018 rulemaking addressing electric storage resources. The purpose of Order no 841-discussed previously on Speaking Energy here and here-was to remove barriers to the participation of electric storage resources in the wholesale markets operated by regional transmission organizations and independent system operators (RTOs/ISOs). FERC required each RTO/ISO to revise its tariff to ensure, among other things, that storage resources can provide all of the energy, capacity and ancillary services they are capable of providing. 

Most controversially, FERC declined to allow states to decide whether storage resources interconnected at the local distribution level-the part of the power grid under state jurisdiction-may participate in the federally regulated RTO/ISO markets. That decision drew legal challenges, as locally

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