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Utilities As Transactional Platforms

MCLI Recommendation: “Congress could expand PURPA to require purchase of a wider range of grid supporting services.”

LPDD Recommendation: “FERC should accept the principle that grid-edge resources, individually or in the aggregate, can submit bids in the RTO markets (and bear the tariff consequences if they fail to meet them) for specified portions or capabilities of the grid-edge resources.”

LPDD Recommendation: “FERC should continue to work toward nondiscriminatory “market participation models” that take account of the specific characteristics and capabilities of grid-edge resources.”

LPDD Recommendation: “States should assure that each energy customer is entitled to grid access on a nondiscriminatory basis to provide wholesale energy and energy services through open, transparent markets or at just and reasonable rates to the local distribution company.”

LPDD Recommendation: “Utilities can use utility-private partnerships to acquire long-term services that support the distribution system in lieu of wires solutions.”

LPDD Recommendation: “State utility commissions should consider a process, in addition to RFPs, for unsolicited proposals from grid-edge resource providers to meet needs identified in a utility distribution system plan.”

LPDD Recommendation: “State utility commissions should promote a utility business model that provides new sources of revenue and profit consistent with encouraging the growth of grid-edge resources.”

LPDD Recommendation: “State utility commissions should require and approve tariffs that make the utility indifferent as to whether the solution is achieved by a utility-private partnership or a wires solution, without the utility commission attempting to balance incentive ratemaking payments against a direct return.”

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15 resources

Example Public Utilities

PJM’s demand response markets

PJM, a Regional Transmission Organization serving several Midwestern states, solicits demand response managed by curtailment service providers, which is integrated into the wholesale markets and used ...

Resource Public Utilities

RAP reports on Utility Reform and Integrated Planning

The Regulatory Assistance Project has prepared a report, Leading Utility Regulatory Reform, highlighting key elements of a successful reform process (including scoping, creative process elements, stak...

Example Public Utilities

CAISO ancillary services markets revisions

In 2016, the California Independent System Operator filed proposed revisions to its Open Access Transmission Tariff with FERC to facilitate participation of aggregations of distribution-connected or d...

Example States and State Governments

Washington’s SB 5116

Washington’s 2019 SB 5116 grants the Utilities and Transportation Commission (UTC) the authority to shift utilities from a return-on-capital business model to a performance-based model. Rather than pr...

Example Public Utilities

Hawaii Performance-Based Regulation and Integrated Grid Planning proceedings

On April 18, 2018, the Public Utilities Commission of Hawaii (PUC) opened a Performance-Based Regulation proceeding to investigate the economic and policy issues associated with performance-based regu...

Example Executive Branch

FERC demand response orders

FERC Order 745 ordered RTOS to open their markets to demand response. FERC Order 755 ordered RTOs to provide frequency regulation compensation to third parties. FERC Order 784 eases the barriers for t...

Example States and State Governments

Oregon Senate Bill 978

Senate Bill 978 created an open investigation into multiple aspects of the regulatory structure, including rate design, revenue regulation, grid modernization, integrated resource planning, and others...

Example States and State Governments

Minnesota Performance-Based Regulation proceeding

Minnesota legislation (Stat. 216B.16) allowed the PUC to “initiate a proceeding to determine a set of performance measures that can be used to assess a utility operating under a multiyear rate plan.” ...

Example Public Utilities

Report, California Aims to Incentivize Utilities to Adopt Third-Party Energy Resources

The Lexington Institute’s 2017 report, California Aims to Incentivize Utilities to Adopt Third-Party Energy Resources, surveys California’s pilot program to incentivize utilities to incorporate cost-e...

Example Executive Branch

FERC Order 841

FERC Order 841 (2018) directed regional grid operators to remove barriers to the participation of electric storage in wholesale markets. By directing the regional grid operators to establish rules tha...

Example Public Utilities

ISO-NE demand response

ISO-NE, a Regional Transmission Organization serving the New England states, outlined their plans to achieve full implementation of demand response in a 2017 FERC filing, Revisions to Implement Full I...

Example Public Utilities

New York’s Reforming the Energy Vision proceeding

The Reforming the Energy Vision proceeding in New York is a comprehensive effort to change how utilities perform system planning, what financial incentives they face, how they make use of distributed ...

Example Public Utilities

California Integrated Distributed Energy Resources proceeding

California’s Integrated Distributed Energy Resources proceeding included a competitive solicitation incentive pilot and a utility regulatory incentive mechanism pilot which will facilitate the deploym...

Example Local Governments

DC’s MEDSIS proceeding

The District commenced a Modernizing the Energy Delivery System for Increased Sustainability (MEDSIS) in 2015, which, in Phase 2, considered separate tracks related to data and information access and ...

Example States and State Governments

Rhode Island’s Power Sector Transformation proceeding

In 2017, Rhode Island’s governor requested the PUC embark on a Power Sector Transformation proceeding. The PUC responded with a Phase One report later that year identifying work to be done developing ...