FED RULE WILL GET NEW ENERGY ON THE WIRES

FERC: Renewable Energy Integration Rule Eliminates Undue Burdens

22 June 2012 (Renew Grid)

“The Federal Energy Regulatory Commission (FERC) has issued a final rule that promotes the more efficient operation of the transmission system amid increasing integration of variable energy resources and benefits electric consumers by ensuring that services are provided at just and reasonable rates.

“The rule adopts two reforms…[one] requiring transmission providers to offer customers the option of scheduling transmission service at 15-minute intervals…[and the other] requiring generators using variable energy resources to provide transmission owners with certain data to support power production forecasting…”

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“The rule finds that transmission customers are exposed to excessive imbalance service charges because they cannot adjust their service schedules within each operating hour. Intra-hour scheduling gives customers the tool they need to manage that exposure when generation output changes within the hour…The rule allows transmission providers to submit alternative proposals that are consistent with or superior to the 15-minute scheduling reform. Any alternative proposal will need to provide equivalent or greater opportunities for transmission customers to mitigate generator imbalance penalties and for the public utility transmission provider to lower its reserve-related costs.

“…[P]ower production forecasts help transmission providers manage reserves more efficiently, [but] the forecasts are only as good as the data on which they rely. By requiring new interconnection customers whose generating facilities are variable energy resources to provide meteorological and operational data to transmission providers engaging in power production forecasting, transmission providers will better be able to manage resource variability…FERC will continue to evaluate proposed charges…”

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