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FERC’s Landmark Storage Order Allowing Market Participation by Behind-the-Meter Resources Upheld by D.C. Circuit

Firm Thought Leadership

FERC's landmark storage order, Order 841, allows storage resources, including behind-the-meter and distribution system-connected storage resources (referred to as “local resources”), to participate in and obtain revenues from the wholesale power markets.  This includes, for example, battery storage systems owned by residential and commercial customers that are paired with rooftop solar generation.  Today, the U.S. Court of Appeals for the District of Columbia Circuit upheld Order 841, rejecting a challenge that FERC’s order was an unlawful exercise of jurisdiction because it did not allow states to prohibit participation by local resources.  The court held that allowing participation by local resources in the wholesale power markets did not intrude on the states’ jurisdiction over retail and distribution systems.

A link to the court’s opinion is available here: https://www.cadc.uscourts.gov/internet/opinions.nsf/E12B1903B0477E21852585A1005264D7/$file/19-1142-1851001.pdf 

 

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