FERC ruling on utility wires charge expected to help standalone energy storage grow

Photo by Dennis Schroeder / NREL

Today the Federal Energy Regulatory Commission (FERC) issued a final order to approve Southern California Edison’s (SCE) Wholesale Distribution Access Tariff proposal. Following more than two years of negotiation, SEIA succeeded in reducing the wires charge for standalone energy storage from SCE’s original proposal, opening the door for significant storage growth in the territory.

The first-of-its-kind wires charge proposed by SCE would have drastically reduced the economic feasibility of all storage resources that are connected at the distribution level and participate in the CAISO market. The agreement that SEIA negotiated with SCE allows near-term resources to come online as planned.

“After a long, two-year negotiation with Southern California Edison (SCE), SEIA and its members were able to secure a 60% reduction in SCE’s proposed wires charge for standalone energy storage, clearing the way for more storage deployment and a cleaner, more reliable grid in California. Without this agreement, storage for utility-scale solar customers would not be feasible in one of the largest utility territories in the country,” said Gizelle Wray, director of regulatory affairs and counsel for SEIA, in a statement. “As written, the proposal would have set a dangerous precedent for unnecessary access fees and would have had a chilling effect on energy storage deployment across the country.

“By securing this reduced charge, we’ve helped preserve the regulatory intent of FERC Orders 841 and 2222, which pave the way for distribution resources to have fair access to wholesale markets. Solar and storage add reliability and resilience to the grid, and SEIA will continue its work to ensure that utilities don’t attempt to add more unnecessary and onerous fees for market participants to use their wires,” she continued.

News item from SEIA

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Original Source: https://www.solarpowerworldonline.com/2021/10/ferc-ruling-sce-wires-charge-expected-help-energy-storage/