FERC Issues Final Rule On Electric Storage Participation In Wholesale Markets

In a landmark rulemaking announced at today's open meeting, the Federal Energy Regulatory Commission (FERC or Commission) opened participation in organized wholesale markets to electric storage resources. The final rule aims to remove barriers to participation in organized markets, reflecting FERC's view that existing market participation models can limit the availability of services that resources based on newer technology are capable of providing.

The final rule requires each regional transmission organization (RTO) and independent system operator (ISO) to revise their tariffs to establish a participation model that recognizes the physical and operational characteristics of electric storage resources and facilitates the participation of those resources in the organized markets. FERC staff's accompanying presentation explained that those participation models must (1) ensure that a resource using the participation model in an organized market is eligible to