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Re:  Distributed Energy Resources Participation in Wholesale Markets

This Advanced Notice of Proposed Rulemaking Order investigates the Commission’s role in the implementation of Federal Energy Regulatory Commission’s (FERC) Order 2222, Participation of Distributed Energy Resource Aggregations in Markets. Operated by Regional Transmission Organization and Independent System Operators, Order No. 2222, 172 FERC ¶ 61,247 (2020), to include any changes or additions needed to regulations or policies to align with Order 2222.

Selected excerpts from press release:

{***}The Pennsylvania Public Utility Commission (PUC) today issued an Advanced Notice of Proposed Rulemaking (ANOPR) seeking comments from stakeholders and other concerned parties about the use of Distributed Energy Resources (DERs) as a mechanism to help increase energy efficiency, enhance service, and potentially lower costs.

The Commission voted 5-0 today to publish the ANOPR in the Pennsylvania Bulletin, which will begin a 60-day period for comments on topics detailed in the rulemaking proposal. {***}

Topics from Order for ANOPR:

{***}

“Pursuant to the Joint Motion entered at the above-captioned docket, the Pennsylvania Public Utility Commission (PUC) issues this Advance Notice of Proposed Rulemaking Order (ANOPR) in order to investigate the PUC’s role in the implementation of FERC Order 22221 and to determine whether any amendments or additions are needed to align existing Commission regulations or policy statements with the Federal Energy Regulatory Commission’s (FERC) Order 2222. 

The PUC seeks comments from interested stakeholders, including members of the regulated industry, statutory advocates, the public, and any other interested parties regarding the topics set forth in this ANOPR. The PUC notes that some of these topics may be appropriately resolved in regulations while others might be more appropriate for policy statements, contained in electric distribution company (EDC) tariffs, or adjudicated on a case-by-case basis, and the PUC specifically seeks comment on how to best administer each topic.”  {***}

III. Topics For ANOPR Pursuant to the Joint Motion adopted at the PUC’s November 9, 2023 Public Meeting, this ANOPR, investigation and rulemaking should address, at a minimum, changes to interconnection rules, changes to metering requirements, cost allocation issues, adjudication of DER registration disputes, EDC overrides of DER dispatch, consumer protection for DER owners, preventing double compensation and double counting of services and electronic data exchange. Both staff and stakeholders have suggested related and additional topics for discussion. {***}

{***} Following a series of stakeholder meetings held by the PUC’s Law Bureau and Bureau of Technical Utility Services in December 2023 and February 2024, a list of potential topics for comment were developed, including:

• Changes to DER interconnection rules.
• Changes to metering requirements.
• Cost allocations for facilities allowing the interconnection of DERs.
• Adjudication of disputes regarding the registration of DERs.
• Management of distribution utility overrides of DERs to maintain reliability, and related disputes.
• Protection of DER owners from unfair trade practices or excessive risk in the wholesale markets.
• Prevention of double compensation or double counting between retail and wholesale market participation.
• Any necessary electronic data exchange revisions.
• Small utility opt-in procedures.
• Potential PUC oversight of DERAs
• Cybersecurity considerations.
• Distribution level benefits.
• Electric distribution companies acting as DERAs.
• Billing Issues.
• Equity Concerns.

Additionally, interested parties submitting comments are being asked to include information about how any similar changes may be implemented in other states. {***}

Press Release  (02/22/2024) 
Order DER ANOPR  (02/22/2024)
Secretarial Letter Der ANOPR Announcing February Meeting  (02/22/2024
Joint Motion Chairman Defrank Vice Chair Barrow 2222 3044115-Cmr  (11/09/2023)
L-2023-3044115  (01/10/2024)