Cost Recovery for Multiple Use Storage Resources
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My goal at the outset of this Capstone Project was to determine how electric storage resources (“ESRs”) can be compensated for the services they can provide and whether ESRs can actually stack the value they offer in practice. To ascertain the answer to these questions, I conducted a review of relevant federal and state regulatory proceedings, decisions, and policies. What I discovered is that currently regulatory barriers prevent electric storage from monetizing all of the services that ESRs can provide, thereby preventing the technologies from delivering a full value stack. Starting from the premise espoused by the Federal Energy Regulatory Commission that the goal should be to realize the full capabilities of ESRs, I offer a path forward that would include the competitive procurement of ESRs through transmission planning and allowing the winning ESRs to also participate in energy markets in retain the resulting revenues. I reason that this path allows ESRs to realize their full capabilities and addresses the concerns raised by regulators that have so far prevented electric storage from monetizing its full value stack. My research and this paper were aided by foundational knowledge I gained through the courses in this program, including on electric storage technologies, policies, and economics in the Emerging Energy Technologies and Applications course and on energy and electric grid policies in the courses on the Electric Grid: Technology and Policy and Introduction to Energy Law & Policy. Finally, this paper is stylized as a law review article in keeping with the legal and policy nature of the project.