Pennsylvania To Evaluate the Viability of Utility Investment in Energy Storage
January 11, 2021
The Pennsylvania Public Utility Commission (“PUC”) is seeking information to guide potential future regulatory policies regarding utilization of energy storage within utility distribution resource planning. The PUC is interested in exploring the viability of utility investment in electric storage as a distribution asset to enhance or maintain system reliability.
The PUC has identified a list of three (3) preliminary questions to guide the discussion on this topic. The list is not intended to be exhaustive, and other issues can be discussed. The list includes:
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What applications can electric storage provide as a distribution asset for utilities that would facilitate improved reliability and resiliency?
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What are the defining characteristics of electric storage used for distribution asset planning as distinguished from generation resources? What thresholds, if any, would classify electric storage as a generation resource and therefore place them outside permitted distribution ratemaking and recovery?
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Is it prudent for utilities to include electric storage in their distribution resource planning and, if so, where and under what circumstances? Further, is it appropriate for utilities to include such investments in rate base?
Additional information regarding the PUC’s initiation of a proceeding on energy storage is provided in the PUC’s December 3, 2020 Secretarial Letter and can be accessed by searching Docket Number M-2020-3022877 on the PUC’s website.
The Secretarial Letter was published in the Pennsylvania Bulletin on December 19, 2020 (available at https://www.pacodeandbulletin.gov/). All interested parties are welcome to submit written comments. The deadline to submit written comments has been extended to February 18, 2021.
If you have any questions about this proceeding or are interested in submitting comments, please contact Sarah Stoner at 717.237.6026, sstoner@eckertseamans.com or Dan Clearfield at 717.237.7173, dclearfield@eckertseamans.com.
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