Regulatory and Market Affairs
Within each grid operating region (ISO) there is a market tariff and set of rules that determine who can bid into the regulation markets and how much those service providers will be paid. These rules also set the pace at which markets are opened and the extent to which our flywheel energy storage technology is or will be allowed to participate.
Historically, the market rules for regulation were written to conform to the abilities of traditional fossil-fuel generators to provide regulation. Until the advent of our technology, the capabilities and limitations of traditional generators defined how regulation could be technically implemented. In the markets where we intend to compete, most of the ISO market rules still contain legacy terms, performance characteristics and other requirements that do not match up with our newer flywheel technology. The impact of this mismatch varies from market to market.
To make it possible for new technologies like Beacon's to participate in the ISO markets on a fair and equitable basis, in 2007 the Federal Energy Regulatory Commission (FERC) issued a landmark ruling known as Order No. 890 ("Preventing Undue Discrimination and Preference in Transmission Service"). This ruling was designed to promote greater competition in electricity markets and improve the reliability of the grid. In the order, FERC mandated that all ISOs change their market tariffs to allow non-generation resources (such as ours) that can provide frequency regulation the opportunity to bid and sell into these markets.
We have a very active Regulatory and Market Affairs department that works to ensure that we capitalize on the timely opportunity afforded by FERC Order No. 890. Here are select links to some of Beacon's FERC and ISO filings, as well as resulting FERC rulings and ISO market rule changes:
- May 15, 2009
- Order accepting tariff revisions re New York Independent System Operator, Inc under ER09-836.
- May 12, 2009
- Midwest Independent Transmission System Operator, Inc submits proposed revisions to provisions of their Energy and Operating Reserve Markets Tariff regarding Stored Energy Resources etc, effective 1/1/10 under ER09-1126.
- May 1, 2009
- Comment of Beacon Power Corporation under AD09-4.
- December 18, 2008
- Order conditionally accepting revised tariff re Midwest Independent Transmission System Operator, Inc under ER09-15.
- February 16, 2007
- Final Rule re Preventing Undue Discrimination and Preference in Transmission Service under RM05-17 et al. (Order #890).
See p. 518 for key statement on non-generation resources