On July 10, 2020, the U.S. Court of Appeals for the District of Columbia Circuit upheld a 2018 Federal Energy Regulatory Commission (FERC) order, Order No. 841, promoting the participation of energy storage technologies like batteries on the electric grid.[1] The court ruled that the order does not infringe upon states’ authority over distribution systems. Order No. 841 is intended to reduce barriers for energy storage resources (ESR) to access the federal wholesale electricity market. While the order is broadly seen by the storage and clean energy advocates as key to furthering the deployment of energy storage, groups like the National Association of Regulatory Utility Commissioners (NARUC), a national association representing State Public Service Commissioners, argued that the order is an attempt to curtail state authority over the distribution system. Specifically, NARUC argued that certain parts of the order, such as blocking states from making rules to “broadly prohibit” energy storage from participating in federally regulated wholesale markets, are violating states’ authority. The three-judge panel of the court found that FERC is within its legal authority under the Federal Power Act (FPA) to ensure storage rules and practices involving wholesale rates are just and reasonable because the order only regulates matters concerning federal transactions.

[1] https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/dc-circuit-upholds-landmark-ferc-order-aimed-at-boosting-energy-storage-59391742