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February 9, 2018

Can Utilities Rate Base Energy Storage as a Distribution Asset?

Microgrid Knowledge

Texas is tackling the question of whether energy storage is a distribution asset, with the potential to set policy that could have national ramifications.

The question arose when American Electric Power asked the Public Utility Commission of Texas to approve its proposal to install numerous grid-scale batteries to beef up a distribution substation, Docket 46368, according to Steven Shparber, attorney for Nelson Mullins Riley & Scarborough.

“I am not aware of any final precedent on this issue, but the use of storage as a transmission or distribution asset has been broadly discussed by many stakeholders,” said Shparber, adding that the eventual decision by the Texas PUC on the issue “will likely impact microgrid and storage development in Texas and elsewhere.”



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