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Texas Regulator Lays Out Inquiry into Role of Storage in Energy Market

The Texas Public Utility Commission seeks feedback on over a dozen questions as it looks to formulate rules on the use of battery storage and other “non-traditional technologies” in electric delivery service. The probe arises from the fact that batteries serve many functions, from absorbing as well as dispatching electricity to respond to swings in supplies or demand, to grid reliability services, and deferral of transmission projects. Among the inquiries include whether utilities can legally own energy storage equipment and facilities to support grid reliability without an exemption from the agency, and whether they should be required to contract with a non-utility service provider to deploy the systems. The regulator also questioned how energy from the devices should be measured and accounted for within the market run by the Electric Reliability Council of Texas Corp. and under which circumstances it would be appropriate for the utility to dispatch the devices. Other questions concern the effects the policy would have on the wholesale and competitive retail markets and what steps utilities could take to mitigate adverse impacts. Comments are due Nov. 2.

September 7, 2018
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