FERC accepts part of NYISO storage plan
The Federal Energy Regulatory Commission on Dec. 19 accepted in part, and rejected in part, a filing submitted by the New York Independent System Operator to comply with the requirements of rules aimed at removing barriers to the participation of energy storage resources (ESRs) in wholesale power markets operated by regional transmission organizations and independent system operators.
Enacted in February 2018, FERC Order No. 841 addresses the participation of electric storage resources in the wholesale capacity, energy and ancillary service markets to more effectively integrate ESRs, enhance competition and help ensure that those markets produce just and reasonable rates.
The rule requires each regional transmission organization and independent system operator to revise its tariff to establish a participation model consisting of market rules that recognize the physical and operational characteristics of ESR and facilitate their participation in the wholesale markets they operate.
FERC directs changes
The Commission on Dec. 19 issued an order that accepted in part, and rejected in part, NYISO’s Order No. 841 compliance filing, subject to a further compliance filing to be submitted within 60 days of the date of issuance of the order.
The Commission rejected the NYISO’s proposal to revise its Buyer-Side Mitigation rules to apply to all new generation resources below 2 megawatts, including ESRs, which are currently exempt from such mitigation. These tariff changes were found to be beyond the scope of this compliance proceeding because the revision would have applied to all generation and not just storage. The New York Power Authority and Power Supply Long Island, which is part of the Long Island Power Authority, had joined other transmission owners in asking the Commission to reject this provision, and also supported a separate complaint filed in July by the New York Public Service Commission and the New York State Energy Research and Development Authority asking that ESRs be exempt from Buyer-Side Mitigation. The Commission has not yet ruled on that complaint.
FERC determined that NYISO’s filing partially complies with the requirement of Order No. 841 to allow electric storage resources to de-rate capacity to meet minimum run-time requirements by spreading their full capability over four hours to meet the four-hour minimum run-time requirement. But because the NYISO has not provided tariff provisions allowing ESRs to de-rate their capacity to meet minimum run-time requirements, FERC directed NYISO to revise its tariff to provide such a process.
Self-management of state of charge
In addition, FERC determined that NYISO’s proposed tariff revisions partially comply with the requirement of Order No. 841 to permit electric storage resources to self-manage their state of charge in both the day-ahead and real-time markets.
