PUBLISHER: Guidehouse Insights | PRODUCT CODE: 1130019
PUBLISHER: Guidehouse Insights | PRODUCT CODE: 1130019
FERC Order 2222: RTO Compliance Plans Reveal Regional Disparities in Distributed Energy Integration
This Guidehouse Insights strategy insight summarizes every RTO/ISO Order 2222 compliance filing and FERC's responses, to date. It analyzes outstanding issues that could impact how Order 2222 is implemented and whether the order effectively integrates distributed energy resources into wholesale power markets; it also assesses the risk and consequences of particular outcomes. Evaluating differences in implementation schemes across the RTOs/ISOs forecasts how Order 2222 implementation could impact various market players in the near and long term.
Table of Contents
1. Compliance Plans Show Wide Regional Disparity on Order 2222 Implementation
2. Context
3. Recommendations
4. Fully Im plemented, Order 2222 Has the Potential to Revolutionize US Power Markets and Benefit Nearly Every Stakeholder
4.1 Compliance Filings Reveal Widening Regional Gaps in Scope and Speed of Distributed Energy Resource Integration
4.1.1 California Independent System Operator
4.1.1.1 CAISO Uses Sub-LAPs to Permit Multi-nodal Aggregations
4.1.1.2 CAISO Limits DUs Ability to Block DER and DR Participation
4.1.1.3 FERC Responds to CAISO
4.1.2 New York Independent System Operator
4.1.2.1 NYISO Limits Aggregation to Single, Authorized Nodes
4.1.2.2 NYISO Tweaks Existing Participation Models, But Imposes Restrictions on DERA
4.1.2.3 NYISO Proposes Bizarre Small Utility Opt-in Provision
4.1.2.4 FERC Ordered NYISO to Resubmit, Omitting DERA Restrictions and Amending Small Utility Opt-In
4.1.3 Pennsylvania-Jersey-Maryland Interconnection
4.1.3.1 FERC Functionally Accepted PJM's Plan, Including Restrictions on Multi-nodal Aggregations
4.1.4 New England Independent System Operator
4.1.4.1 Employing DRR Aggregation Zones to Facilitate (Some) Multi-Nodal Aggregations
4.1.4.2 ISO-NE Proposed Restricting Broader Participation Until New England Deploys Advanced Metering Infrastructure
4.1.4.3 ISO-NE Deviates from FERC's Language for Small Utility Opt-in Provision
4.1.4.4 FERC Requests Additional Information from ISO-NE
4.1.5 The Midcontinent Independent System Operator
4.1.5.1 Restricting Aggregations to Single Pricing Nodes
4.1.5.2 Coordinating with State Regulators and DUs
4.1.5.3 Proposing October 1, 2029, as the Effective Implementation Date
4.1.6 Southwest Power Pool
4.1.6.1 SPP Adopts Resource Types in Lieu of Participation Models
4.1.6.2 SPP Imposes (by Implication) a 10 MW Maximum Capacity Cap
4.1.6.3 SPP Proposed December 31, 9998 as its Effective Implementation Date
4.1.7 Electric Reliability Council of Texas
4.2 Compliance Filings Raise Unresolved Questions About Order 2222 Implementation
4.2.1 Do State Regulators Have Authority Under Order 719 to Bar DR Aggregations from Participating in Wholesale Markets?
4.2.1.1 Order 2222-a Clarified Order 719
4.2.1.2 Order 2222-b Rescinded Order 2222-a
4.3 Can Distributed Energy Resource Aggregations Operate Effectively if Confined to a Single Transmission Node?
4.4 Can State Regulators, DUs, and RTOs/ISOs Cooperate Sufficiently to Harmonize Retail and Wholesale Markets for Distributed Energy Resources?
4.5 Will RTOs/ISOs Adopt a Standard DER Aggregation Participation Model?
4.6 Does the Small Utility Opt-in Provision Effectively Block Participation by Rural Electric Cooperatives and Public Power Providers?
5. Net Metering Programs-and FERC's Own Language-May Inadvertently Stunt Order 2222's Effectiveness
List of Tables
- Order 2222-RTO/ISO Compliance Plans At-a-Glance
