Regulation Database – Federal Energy Regulatory Commission

FERC Order 1000

FERC Order 1000 reforms electric transmission planning and cost allocation requirements for public utility providers. The Commission now requires public utility providers to participate in a regional planning process. During the regional transmission planning process the parties must ensure that public policy requirements are satisfied and that infrastructure is developed in a manner that contributes to energy efficiency. In addition to regional planning, FERC Order 1000 also introduces cost allocation measures controlling the distribution of the cost of new infrastructure that serves the region. The Order has been amended twice (Orders 1000-A and 1000-B). More information can be found here.

FERC Order 745 

FERC Order 745 was issued as a result of the mandates of the Energy Policy Act of 2005 related to barriers to the demand response market.  The Order requires that demand-response resources organized by a regional public utility be compensated at the market price.  Each RTO and ISO determines a price level at which demand response dispatch is cost-effective compared to generation. Order 745 specifies that market price is set according to the cost of making electricity available at the location in question (locational marginal price).

Litigation: Order 745 was upheld by the U.S. Supreme Court in FERC v. Electric Power Supply Association (2016).

Regulations for Third-Party Provision of Ancillary Services

As part of efforts to foster competition and increase transparency in ancillary service markets the Federal Energy Regulatory Commission has drafted new rules to enable third-party providers to access electric markets on a less discriminatory basis. The new rule allows third-parties to provide ancillary services that the transmission provider is only required to offer as opposed to require to provide. Ancillary services includes activities such as electricity storage.

Proposed Rule: Electric Storage Participation in Markets Operated by Regional Transmission Organizations and Independent System Operators

On November 30, 2016, FERC proposed an amendment to its regulations to allow electric storage and distributed energy resources to participate in wholesale electric markets. If finalized, this rule would facilitate the full participation of energy sources like solar energy storage and efficiency aggregation in the mainstream energy markets.

 

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