March 28, 2019

Preemption, I Think Not: Evaluating California’s Stored Energy Procurement Law against FERC Order 841

Raymond Richards

On February 15, 2018, FERC declared existing Regional Transmission Organization/Independent Systems Operator (RTO/ISO) market rules governing the inclusion of ESRs in the wholesale markets to be “unjust and unreasonable in light of barriers that they present to the participation of electric storage in the RTO/ISO markets, [because they] reduc[e] competition and [fail] to ensure just and reasonable rates.” Using its authority in the FPA, FERC required RTOs (and ISOs) to revise tariffs establishing market rules recognizing the unique physical and operational characteristics of ESRs so as to facilitate the participation of such resources in the wholesale markets.

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