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Federal Energy Regulatory Commission

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Statement: February 17, 2011
Docket Nos. RM11-7-000 and AD10-11-000

Statement of Commissioner Cheryl A. LaFleur on proposed new compensation method for regulation service

"A significant number of the matters before the Commission in recent months have related to how new energy resources integrate into grid operations and market rules. New technologies are pushing the limits of market rules; targeted changes to market operations can help customers benefit from new technologies. In this Notice of Proposed Rulemaking, we propose a targeted reform to better accommodate fast-ramping resources. While targeted, this proposed reform will likely grow in significance, due to the growing role of storage technologies in energy markets.

I believe today's proposal reflects the best practices of the RTOs in integrating fast-ramping resources into their markets. Today's rule also reflects the efforts of our staff conducting outreach meetings with the transmission operators and market participants.

I am mindful of the comments of my colleague. However, I emphasize that this is a Notice of Proposed Rulemaking, which builds on the Commission's technical conference in May 2010, and request for comments in June 2010. I encourage comments on this proposal not just from energy storage and demand response providers, but from all of the stakeholders who have views on this rule, both those who participate in ISO/RTO markets and those in other regions of the country."