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Power & Pipes

FERC, CFTC, and State Energy Law Developments

On June 16, 2010, the Federal Energy Regulatory Commission (Commission) issued a Notice of Inquiry in Docket Nos. RM11-24-000 and AD10-13-000 seeking comments on two separate but related issues.

First, the Commission requested comments on how the Commission could facilitate the development of robust competitive markets for the provision of ancillary services from all generating resource types. More particularly, the Commission sought comments on the existing restrictions on the third-party provision of ancillary services, regardless of the technologies used for such provision. Second, the Commission requested comments on the adequacy of accounting and reporting requirements as they pertain to the oversight of jurisdictional entities using electric storage devices.

With regard to loosening the current restrictions on ancillary service markets, the Commission requested comments on the following:

  • Concerns related to the ability of a seller of ancillary services to perform a market power study
  • Whether the Commission should replace the requirement to submit formal market power studies with a measure of de minimis market presence that would justify a grant of market-based rate authority
  • Mitigation alternatives to requiring that ancillary service sellers, who wish to make sales to transmission providers, submit formal market power studies
  • Assuming third-party purchases of ancillary services are allowed, how transmission providers would compensate the frequency regulation resources procured, particularly amongst differing wholesale markets

With regard to the adequacy of accounting and reporting requirements as they pertain to the oversight of electric storage devices, the Commission requested comments on the following issues pertaining to the Uniform System of Accounts:

  • New and modified plant accounts
  • Cost of power used in storage operations
  • Revenue derived from energy storage services
  • Operation and maintenance expenses
  • Form Nos. 1 and 1-F

Comments are due 60 days after publication in the Federal Register. The Notice of Inquiry may be downloaded here.