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FERC Backs Energy Storage Rule Despite State Concerns

Law360 (May 16, 2019, 6:08 PM EDT) -- The Federal Energy Regulatory Commission on Thursday largely upheld its landmark rule making a place for energy storage in wholesale electricity markets despite Republican Commissioner Bernard McNamee’s contention that the agency was unlawfully intruding on state authority under the Federal Power Act.

Three of FERC’s four commissioners denied requests to reconsider key aspects of Order No. 841, which directed regional grid operators to revise their tariffs to establish market rules that "properly recognize" the physical and operational characteristics of electricity storage providers and was finalized in February 2018.

Regional grid operators must ensure that energy storage resources are allowed to provide...

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