FERC found that a storage device using a utility’s distribution system in charging mode should share in the costs of the distribution system.
On June 18, the Federal Energy Regulatory Commission (FERC) upheld an earlier order allowing Commonwealth Edison Company (ComEd) to assess a wholesale distribution charge on Energy Vault, LLC (Energy Vault), which owns a battery energy storage facility directly interconnected to ComEd’s distribution system.[1] Because Energy Vault will use ComEd’s distribution system to charge its batteries, FERC concluded that that it would be appropriate for Energy Vault to be assessed the distribution charge.
ComEd assesses a wholesale distribution charge on non-generator customers connected to its distribution system that take distribution service. This wholesale distribution charge is a weighted average carrying charge that is calculated based on the distribution facilities that will be used in providing wholesale distribution service. Generator customers connected to the distribution system are not subject to this wholesale distribution charge because ComEd had previously concluded that reverse flows from generators may benefit its system by reducing congestion and line loading in some conditions.