Law360 Quotes Chip Cannon on FERC Decision to Open Power Markets to Energy Storage
Chip Cannon, co-head of Akin Gump’s energy regulation, markets and enforcement practice, was quoted in the Law360 article “Biggest Energy Regulatory Moves Of 2018: Midyear Report.” Among the noteworthy energy regulatory headlines from the first six months of the year, according to Cannon, was the Federal Energy Regulatory Commission (FERC)’s move to create space for energy storage in wholesale electricity markets.
The article reports that in February, FERC’s Order 841 directed regional grid operators to establish market rules recognizing the physical and operational characteristics of electricity storage providers. While the regional operators still have to submit their compliance plans for FERC approval, the order is seen as a potential game-changer for both energy storage and renewables, with Cannon pointing out that the agency provided a further boost in April when it revised its regulations covering how new power generators hook up to the grid.
“Specifically, FERC proposed to revise the definition of ‘generating facility’ in the FERC-approved interconnection procedures to expressly include electric storage resources,” Cannon said. “This decision was much more low-key than the Order No. 841, but still provides additional certainty for storage providers.”