PRIOR PRINTER'S NO.
3424 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.
36302380 THE2026 GENERALINTRODUCED ASSEMBLYBY OFRIVERA, PENNSYLVANIAFIEDLER, HOUSEWEBSTER, BILLOTTEN, SessionWAXMAN, SANCHEZ, HILL-EVANS, CEPEDA-FREYTIZ, HOHENSTEIN, PROBST, PIELLI, VENKAT, McNEILL, VITALI, NEILSON, INGLIS, BOROWSKI, BOYD, MAYES, CURRY, CIRESI AND STEELE, MAY 21, 2026 REFERRED TO COMMITTEE ON ENERGY, MAY 21, 2026 AN ACT Amending Title 66 (Public Utilities) of No.the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, providing for energy storage procurement.
2380 2026 INTRODUCED BY RIVERA, FIEDLER, WEBSTER, OTTEN, WAXMAN, SANCHEZ, HILL-EVANS, CEPEDA-FREYTIZ, HOHENSTEIN, PROBST, PIELLI, VENKAT, McNEILL, VITALI, NEILSON, INGLIS, BOROWSKI, BOYD, MAYES, CURRY, CIRESI, STEELE, RABB, MALAGARI, MAZZOCCO, KRAJEWSKI, FRANKEL, FRIEL, SALISBURY, FREEMAN, O'MARA, SHUSTERMAN, BRENNAN AND KHAN, MAY 21, 2026 AS REPORTED FROM COMMITTEE ON ENERGY, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 17, 2026 AN ACT AmeConsolidated Statutes, in restructuring of electric utility industry, providing for energy storage procurement.
(a) Energy storage program.--The commission shall require each electric distribution company to establish an energy storage program that is designed to achieve at least 3,000 3,500 <-- total megawatts of capacity in the aggregate from front-of-the-front-of-the-meter meter energy storage systems by July 1, 20332033. 31, 2035.
The total <-- megawatts of capacity shall consist of at least 2,000 megawatts of short-durationshort- duration storage and,and 1,000 megawatts of long-duration <-- storage.
AND(b) 500Allocation MEGAWATTSof OFcapacity MULTIDAYtargets.--Within STORAGE.60 days of the effective date of this subsection, the commission shall calculate and assign each electric distribution company's apportioned share of the 3,000 total megawatts of capacity for short-duration storage and long-duration storage in a manner consistent with subsection (a).
<--The (B)commission's PERMITTEDcalculations USES.--ANshall ELECTRICbe DISTRIBUTIONbased COMPANYon SHALLthe UTILIZEservice THEload DISTRIBUTION-CONNECTEDand ANDannual TRANSMISSION-CONNECTEDsystem ENERGYpeak STORAGEdemand SYSTEMSof PROCUREDeach UNDERapplicable THISelectric SECTIONdistribution TOcompany's PERFORMservice GRIDterritory, SERVICESin DURINGaddition PEAKto ORany OFF-PEAKother DEMANDcriteria PERIODS,that INCLUDINGthe THEcommission FOLLOWING:determines to be appropriate.
(c) Target modifications.-- (1) PEAKThe DEMANDcommission REDUCTIONmay ANDadjust PEAKor LOADmodify MANAGEMENT.the apportioned share of energy storage system capacity under subsection (b) for each electric distribution company if there is a demonstrated lack of commercially available energy storage systems or procurement proposals received, as determined by the commission.
(2) FREQUENCYIf REGULATION,found VOLTAGEby SUPPORTthe ANDcommission OTHERto ANCILLARYbe SERVICES.in the public interest, the commission may establish a cap on the total megawatts of energy storage system capacity that may be procured or owned by an electric distribution company under this section.
(3) AVOIDING OR DEFERRING TRADITIONAL CAPITAL INVESTMENTS ON THE DISTRIBUTION SYSTEM OR TRANSMISSION SYSTEM.
(4) BACKUP GENERATION SERVICES DURING OUTAGES OR OTHER ELECTRIC SERVICE DISRUPTIONS.
(5) EXCEPT FOR DISTRIBUTION-CONNECTED STORAGE, PARTICIPATION IN THE WHOLESALE ENERGY, CAPACITY OR ANCILLARY MARKETS OF THE REGIONAL TRANSMISSION ORGANIZATION IN WHICH THE ELECTRIC DISTRIBUTION COMPANY PARTICIPATES.
(6) ANY OTHER GRID SERVICES APPROVED BY THE COMMISSION TO BENEFIT RATEPAYERS AND IMPROVE THE RELIABILITY OF THE DISTRIBUTION OR TRANSMISSION SYSTEM.
(C) SYSTEM RELIABILITY ASSESSMENT.-- (1) WITHIN 180 DAYS OF THE EFFECTIVE DATE OF THIS SECTION, EACH ELECTRIC DISTRIBUTION COMPANY SHALL CONDUCT AND SUBMIT AN ASSESSMENT TO THE COMMISSION ON THE RELIABILITY OF THE DISTRIBUTION AND TRANSMISSION SYSTEM WITHIN THE ELECTRIC DISTRIBUTION COMPANY'S SERVICE TERRITORY.
(2) THE COMMISSION'S CALCULATIONS AND ASSIGNMENT OF CAPACITY TARGETS UNDER SUBSECTION (D) SHALL BE BASED ON THE COMMISSION'S REVIEW AND FINDINGS FROM THE ASSESSMENT COMPLETED UNDER THIS SUBSECTION, INCLUDING THE ASSIGNMENT OF 20260HB2380PN3630 - 2 - SPECIFIC TARGETS FOR DISTRIBUTION-CONNECTED AND TRANSMISSION- CONNECTED ENERGY STORAGE SYSTEMS BASED ON THE IDENTIFIED RELIABILITY NEEDS DESCRIBED IN THE ASSESSMENT.
(3) THE ASSESSMENT SHALL IDENTIFY, AT MINIMUM, THE FOLLOWING:
(I) SPECIFIC AREAS OF THE DISTRIBUTION SYSTEM AND TRANSMISSION SYSTEM WITH SYSTEM CONSTRAINTS AND CONGESTION POINTS.
(II) THE RELIABILITY NEEDS OF THE TRANSMISSION AND DISTRIBUTION SYSTEM THAT MAY BE ADDRESSED BY THE PROCUREMENT OF ENERGY STORAGE SYSTEMS, INCLUDING SHORT- DURATION, LONG-DURATION AND MULTIDAY STORAGE.
(III) AN ANALYSIS OF THE MEGAWATTS OR MEGAWATT-HOURS OF CAPACITY FROM ENERGY STORAGE SYSTEMS NEEDED TO SERVE AS A COST-EFFECTIVE ALTERNATIVE TO TRADITIONAL CAPITAL INVESTMENTS ON THE DISTRIBUTION AND TRANSMISSION SYSTEM.
(IV) AN ANALYSIS TO DETERMINE THE TECHNICAL FEASIBILITY OF THE PROCUREMENT OF DISTRIBUTION-CONNECTED AND TRANSMISSION-CONNECTED ENERGY STORAGE SYSTEMS TO PROVIDE GRID SERVICES OR ADDRESS THE RELIABILITY NEEDS OF THE TRANSMISSION AND DISTRIBUTION SYSTEM.
(V) AN ANALYSIS OF THE MOST PRACTICAL AND COST- EFFECTIVE APPLICATIONS OF SHORT-DURATION, LONG-DURATION AND MULTIDAY DURATION STORAGE ON THE DISTRIBUTION AND TRANSMISSION SYSTEM TO IMPROVE SYSTEM PERFORMANCE AND DELIVER COST SAVINGS TO RATEPAYERS.
(VI) ANY OTHER INFORMATION OR SUPPORTING DATA REQUIRED BY THE COMMISSION TO PROPERLY CALCULATE THE APPORTIONED SHARE OF ENERGY STORAGE CAPACITY FOR EACH ELECTRIC DISTRIBUTION COMPANY.
20260HB2380PN3630 - 3 - (b) (D) Allocation of capacity targets.--Within 60 days of <-- the effective date of this subsection, FOLLOWING THE SUBMISSION <-- OF AN ASSESSMENT UNDER SUBSECTION (C), the commission shall calculate and assign each electric distribution company's apportioned share of the 3,000 3,500 total megawatts of capacity <-- for short-duration storage and, long-duration storage AND <-- MULTIDAY STORAGE in a manner consistent with subsection (a).
The <-- commission's calculations shall be based on the service load and annual system peak demand of each applicable electric distribution company's service territory, in addition to any other criteria that the commission determines to be appropriate.
(c) (E) Target modifications.-- <-- (1) The commission may adjust or modify the apportioned share of energy storage system capacity under subsection (b) <-- (D) for each electric distribution company if there is a <-- demonstrated lack of commercially available energy storage systems or procurement proposals received, as determined by the commission.
(2) If found by the commission to be in the public interest, the commission may establish a cap on the total megawatts of energy storage system capacity that may be procured or owned by an electric distribution company under <-- this section.
20260HB2380PN3630 - 4 - (d) Competitive procurement.--Subject to approval by the <-- commission, each electric distribution company shall use an open, fair and nondiscriminatory competitive procurement process, including the use of auctions or requests for 20260HB2380PN3424 - 2 - proposals, to reach the company's apportioned share of the total megawatts of capacity as described under subsection (b).
(4)(e) THEUse COMMISSIONof MAYindependent ADJUSTmonitor.--The THEcommission PROCUREMENTshall SCHEDULEappoint <--an UNDERindependent SUBSECTIONevaluator (F)to IFmonitor THEREand ISreport Aon DEMONSTRATEDeach LACKcompetitive OFprocurement COMMERCIALLYprocess AVAILABLEunder ENERGYsubsection STORAGE(d). SYSTEMS OR PROCUREMENT PROPOSALS RECEIVED, AS DETERMINED BY THE COMMISSION, OR ANY EXTERNAL DELAYS BEYOND CONTROL OF THE ELECTRIC DISTRIBUTION COMPANY, INCLUDING ANY IMPACTS TO THE PROCUREMENT CYCLE ATTRIBUTABLE TO PJM INTERCONNECTION, LLC.
(F)An COMPETITIVEindependent PROCUREMENT.--evaluator (1)shall SUBJECThave TOaccess APPROVALto BYall THEinformation COMMISSION,and EACHdata ELECTRICrelating DISTRIBUTIONto COMPANYthe SHALLcompetitive USEprocurement ANprocess, OPEN,provided FAIRthat ANDall NONDISCRIMINATORYproprietary COMPETITIVEinformation PROCUREMENTshall PROCESS,remain INCLUDINGconfidential. THE USE OF AUCTIONS OR REQUESTS FOR PROPOSALS, TO REACH THE COMPANY'S APPORTIONED SHARE OF THE TOTAL MEGAWATTS OF CAPACITY AS DESCRIBED UNDER SUBSECTION (D).
(2) THE COMMISSION SHALL REVIEW EACH ELECTRIC DISTRIBUTION COMPANY'S PROPOSED COMPETITIVE PROCUREMENT PROCESS AND SOLICIT FEEDBACK FROM STAKEHOLDERS FOR ANY POTENTIAL ADJUSTMENTS PRIOR TO EACH PROCUREMENT.
(3) UNDER THE COMPETITIVE PROCUREMENT PROCESS, EACH ELECTRIC DISTRIBUTION COMPANY SHALL ISSUE A SOLICITATION FOR ENERGY STORAGE SYSTEM PROJECTS AND OPEN BIDDING TO INDEPENDENT POWER PRODUCERS IN ORDER TO REACH THE TOTAL MEGAWATTS OF CAPACITY REQUIRED UNDER SUBSECTION (A).
(4) EACH ELECTRIC DISTRIBUTION COMPANY SHALL PROCURE A 20260HB2380PN3630 - 5 - MINIMUM OF 100 MEGAWATTS FOR EACH PROCUREMENT, REGARDLESS OF THE ELECTRIC DISTRIBUTION COMPANY'S APPORTIONED SHARE OF CAPACITY DETERMINED BY THE COMMISSION.
(e) (G) Use of independent monitor.--The commission shall <-- appoint an independent evaluator to monitor and report on each competitive procurement process under subsection (d) (F).
An <-- independent evaluator shall have access to all information and data relating to the competitive procurement process, provided that all proprietary information shall remain confidential.
(f) (H) Schedule.--Each electric distribution company shall <-- enter into cost-effective long-term purchase contracts OF AT <-- LEAST 15 YEARS for the company's apportioned share of the 3,000 <-- 3,500 total megawatts of capacity under subsection (a) in <-- accordance with the following schedule:
20260HB2380PN3630 - 6 - (1) By July 31, 20282028, 2029, at least 500 megawatts of <--20260HB2380PN3424 - 3 - transmission-connected short-duration storage and,and 100 <-- megawatts of distribution-connected short-duration storage AND 100 MEGAWATTS OF TRANSMISSION-CONNECTED LONG-DURATION <-- STORAGE shall be procured, including existing energy storage systems.
(2) By July 31, 20292029, 2031, at least AN ADDITIONAL 500 <-- megawatts of transmission-connected short-duration storage,storage <-- 200 MEGAWATTS OF TRANSMISSION-CONNECTED LONG-DURATION STORAGE AND 100 MEGAWATTS OF MULTIDAY STORAGE shall be procured.
(3) By July 1, 2030, at least 500 31, 2033, AT LEAST AN <-- ADDITIONAL 500 megawatts of transmission-connected short-short-duration durationstorage storage, 300 MEGAWATTS OF TRANSMISSION-CONNECTED <-- LONG-DURATION STORAGE AND 200 MEGAWATTS OF MULTIDAY STORAGE shall be procured.
(4) By July 31, 20332033, 2035, all remaining energy storage <-- systems capacity shall be procured, including AT LEAST 400 <-- total megawatts OF DISTRIBUTION-CONNECTED short-duration <-- storage and 1,000 megawatts of long-durationlong- storage.,duration 400storage. <-- MEGAWATTS OF TRANSMISSION-CONNECTED LONG-DURATION STORAGE AND 200 MEGAWATTS OF MULTIDAY STORAGE.
(g) (I) Procurement standards.--For the purposes of <-- subsection (d)(d), (F), each electric distribution company shall <-- comply with the following competitive procurement requirements:
(1) FORFor EACHeach COMPETITIVEcompetitive PROCUREMENTprocurement PROCESS,process, EACHeach <--electric ELECTRICdistribution DISTRIBUTIONcompany COMPANYshall SHALLprovide ESTABLISHan ANinitial OPENdescription ANDof TRANSPARENTthe STAKEHOLDERfollowing PROCESSinformation WITHto THEprospective COMMISSION,bidders: PROSPECTIVE BIDDERS AND STAKEHOLDERS TO REVIEW THE PROPOSED TERMS, PROCEDURES, REQUIREMENTS AND OTHER INFORMATION RELATED TO THE COMPETITIVE PROCUREMENT PROCESS.
20260HB2380PN3630 - 7 - (1) (2) For each competitive procurement process, each <-- electric distribution company shall provide an initial description of the following information to prospective bidders:
20260HB2380PN3424 - 4 - (iii) The qualifications and experience required for submitting bids under the competitive procurement process.
(2) (3) Each electric distribution company shall select <-- and award the lowest responsible bidder BIDDERS THAT <-- REPRESENT THE BEST VALUE under a competitive procurement process based on evaluating, but not limited to, the following criteria:
20260HB2380PN3630 - 8 - (i) The cost-effectiveness to ratepayers over the course of the term of the contract after taking into consideration the benefits to the distribution and transmission system.
20260HB2380PN3424 - 5 - (vi) The proximity to the distribution or transmission system experiencing constraints or congestion.
(3) Each (4) IF THE COST-EFFECTIVENESS AND VALUE OF <-- SERVICES ARE COMPARABLE TO OTHER QUALIFIED BIDDERS, EACH electric distribution company shall prioritize the evaluation <-- of GIVE PRIORITY TO a qualified bidder that demonstrates any <-- of the following:
(i) For construction, expansion, rehabilitation, renovation or site work performed on energy storage system, all contractors and subcontractors comply with fair wage standards, including compliance with the provisions of the act of August 15, 1961 (P.L.987, 20260HB2380PN3630 - 9 - No.442), known as the Pennsylvania Prevailing Wage Act.
(h) Decommissioning.--Each contract agreement entered into <-- under this section shall include provisions requiring the owner or operator to provide a decommissioning plan for the procured energy storage systems, including the recycling or reuse of all qualifying components of each system.
(J)(i) DECOMMISSIONINGOwnership.--The ANDenergy SAFETY.--EACHstorage CONTRACTsystems AGREEMENTprocured <--under ENTEREDthe INTOprogram UNDERshall THISbe SECTIONowned SHALLby INCLUDEa PROVISIONScombination REQUIRINGof THEthe OWNERelectric ORdistribution OPERATORcompany TO:and third-party developers.
(1) PROVIDE A DECOMMISSIONING PLAN FOR THE PROCURED ENERGY STORAGE SYSTEMS, INCLUDING THE RECYCLING OR REUSE OF ALL QUALIFYING COMPONENTS OF EACH SYSTEM TO THE EXTENT THAT THE RECYCLING AND REUSE CAN BE REASONABLY ACHIEVED BY EXISTING COMMERCIAL PRACTICES.
(2) COMPLY WITH THE NATIONAL FIRE PROTECTION ASSOCIATION 855 STANDARD IN EFFECT ON THE EFFECTIVE DATE OF THIS SECTION FOR THE INSTALLATION OF STATIONARY ENERGY STORAGE SYSTEMS, IF APPLICABLE, TO THE CHEMISTRY OF THE ENERGY STORAGE SYSTEM.
(K) CONFIDENTIAL INFORMATION.--A THIRD-PARTY DEVELOPER THAT PARTICIPATES IN A COMPETITIVE PROCUREMENT PROCESS TO ENTER INTO A CONTRACT WITH AN ELECTRIC DISTRIBUTION COMPANY UNDER THIS SECTION SHALL NOT DISCLOSE, DISTRIBUTE OR OTHERWISE MAKE AVAILABLE ANY INFORMATION RELATING TO THE OPERATIONS OF THE ELECTRIC GRID WITHOUT THE CONSENT OF THE ELECTRIC DISTRIBUTION 20260HB2380PN3630 - 10 - COMPANY.
A VIOLATION OF THIS SUBSECTION SHALL BE SUBJECT TO ENFORCEMENT BY THE COMMISSION UNDER CHAPTER 33 (RELATING TO VIOLATIONS AND PENALTIES).
(i) (L) Ownership.--The energy storage systems procured <-- under the program shall be owned by a combination of the <-- electric distribution company and third-party developers.
(1) An electric distribution company may enter into 20260HB2380PN3424 - 6 - bilateral agreements under a competitive procurement process to construct, own and operate distribution-connected energy storage systems to reach part of the company's apportioned share of the 3,000 total megawatts of capacity under subsection (b).
THIRD-(j) <--Commission PARTYapproval.--The DEVELOPERS.commission, in consultation with the independent evaluator under subsection (e), shall establish procedures to review all proposed contracts prior to the execution of the contract with the lowest responsible bidder.
AN ELECTRIC DISTRIBUTION COMPANY MAY NOT OWN THE ENERGY STORAGE SYSTEMS CONSTRUCTED OR PROCURED TO COMPLY WITH THE REQUIREMENTS OF THIS SECTION.
(j) (M) Commission approval.--The commission, in <-- consultation with the independent evaluator under subsection (e) <-- (G), shall establish procedures to review all proposed contracts <-- 20260HB2380PN3630 - 11 - prior to the execution of the contract with the lowest <-- responsible WINNING bidder.
<-- (1) An electric distribution company shall file a proposed contract with the commission and provide sufficient documentation to permit the commission to conduct the review required under paragraph (3), including the cost-benefit analysis used to determine the cost-effectiveness of the procurement and methods used to select a qualified bidder.
(i) The cost-effectiveness of the contract terms and impact20260HB2380PN3424 on- ratepayer7 affordability.,- INCLUDINGimpact <--on CONSIDERATIONratepayer OFaffordability. THE FOLLOWING:
(A) AVOIDED OR DEFERRED TRANSMISSION, DISTRIBUTION, GENERATION AND OTHER TRADITIONAL INFRASTRUCTURE UPGRADE COSTS, INCLUDING THE EXTENT TO WHICH THE ENERGY STORAGE SYSTEM FUNCTIONS AS A NONWIRES ALTERNATIVE.
(B) SYSTEM EFFICIENCY AND OPERATIONAL BENEFITS, INCLUDING CONGESTION REDUCTION, PEAK LOAD REDUCTION, REDUCTION OF MARGINAL LINE LOSSES, PROVISION OF VOLTAGE SUPPORT AND REACTIVE POWER SERVICES, MITIGATION OF LOCALIZED SYSTEM CONSTRAINTS AND INCREASED DISTRIBUTED ENERGY RESOURCE HOSTING CAPACITY.
(C) RELIABILITY AND RESILIENCY BENEFITS, INCLUDING ENHANCEMENT OF SYSTEM RELIABILITY IN CONSTRAINED OR HIGH-RISK AREAS AND BENEFITS TO DISTRIBUTION CUSTOMERS.
(D) MARKET AND RATEPAYER SAVINGS, INCLUDING 20260HB2380PN3630 - 12 - REDUCTION IN THE ELECTRIC DISTRIBUTION COMPANY'S OBLIGATION TO PROCURE CAPACITY IN PJM INTERCONNECTION, LLC, THROUGH MEASURABLE REDUCTIONS IN PEAK LOAD CONTRIBUTION THAT RESULT IN REDUCED INSTALLED CAPACITY OBLIGATIONS CONSISTENT WITH THE MARKET RULES OF PJM INTERCONNECTION, LLC.
(E) THE AVAILABILITY AND UTILIZATION OF APPLICABLE FEDERAL OR STATE TAX CREDITS OR EXEMPTIONS.
and <-- (iii) the bid selection and solicitation process are found to be fair, objective and nondiscriminatory by the 20260HB2380PN3630 - 13 - independent evaluator.;evaluator.
AND <-- (IV) THE PROCUREMENT OF THE ENERGY STORAGE SYSTEM DEMONSTRATES THE ABILITY TO PROVIDE MEASURABLE RELIABILITY, RESILIENCY OR PEAK DEMAND REDUCTION BENEFITS TO THE DISTRIBUTION SYSTEM.
An electric distribution company shall have 60 20260HB2380PN3424 - 8 - days to file a modified proposed contract with the commission.
(k) (N) Annual report.-- <-- (1) Each electric distribution company shall submit an annual report to the commission relating to the progress and results of the energy storage program within each electric distribution service territory.
(iii) The location and ownership status each energy <-- storage system procured.
20260HB2380PN3630 - 14 - (iv) (III) Evaluation of the cost-effectiveness of <-- program expenditures.
(v) (IV) Any other information required by the <-- commission.
(2) Beginning five years after the effective date of this paragraph and annually thereafter, the commission shall submit a report to the CONSUMER PROTECTION AND PROFESSIONAL <-- LICENSURE COMMITTEE OF THE SENATE, THE CONSUMER PROTECTION, TECHNOLOGY AND UTILITIES COMMITTEE OF THE HOUSE OF REPRESENTATIVES, THE Environmental Resources and Energy Committee of the Senate and the Energy Committee of the House of Representatives.
(l) Cost recovery.--An electric distribution company may <-- recover on a full and current basis from customers, through a reconcilable adjustment clause under section 1307 (relating to 20260HB2380PN3424 - 9 - sliding scale of rates;
(O)(n) COSTDefinitions.--As RECOVERY.--used <--in 20260HB2380PN3630this -section, 15the -following (1)words ANand ELECTRICphrases DISTRIBUTIONshall COMPANYhave MAYthe RECOVERmeanings ONgiven Ato FULLthem ANDin CURRENTthis BASISsubsection FROMunless CUSTOMERS,the THROUGHcontext Aclearly RECONCILABLEindicates ADJUSTMENTotherwise: CLAUSE UNDER SECTION 1307 (RELATING TO SLIDING SCALE OF RATES;
ADJUSTMENTS), ALL REASONABLE AND PRUDENT COSTS IN THE PROCUREMENT OF ENERGY STORAGE SYSTEMS UNDER A COMPETITIVE PROCUREMENT PROCESS UNDER THIS SECTION, AS APPROVED BY THE COMMISSION.
(2) ANY DECREASED REVENUES OF AN ELECTRIC DISTRIBUTION COMPANY DUE TO CHANGES IN ENERGY DEMAND OR AVOIDED INFRASTRUCTURE COSTS SHALL NOT BE A RECOVERABLE COST UNDER A RECONCILABLE AUTOMATIC ADJUSTMENT CLAUSE.
(3) THE COMMISSION SHALL PROMULGATE RULES OR REGULATIONS TO ENSURE THAT ALL AVOIDED INFRASTRUCTURE COSTS AND REVENUES GENERATED THROUGH PARTICIPATION IN WHOLESALE MARKETS ARE CREDITED IN FULL AGAINST THE RECOVERABLE COSTS UNDER A RECONCILABLE ADJUSTMENT CLAUSE.
FOR THE PURPOSES OF THIS PARAGRAPH, EACH ELECTRIC DISTRIBUTION COMPANY SHALL ESTABLISH A METHODOLOGY FOR CALCULATING THE AVOIDED INFRASTRUCTURE COSTS OF THE DISTRIBUTION SYSTEM AND TRANSMISSION SYSTEM ATTRIBUTABLE TO THE SERVICES OF THE PROCURED ENERGY STORAGE SYSTEMS.
(4) THE COMMISSION SHALL ESTABLISH A COST ALLOCATION METHODOLOGY TO ENSURE THAT:
(I) ALL RECOVERABLE COSTS ARE FINANCED BY THE SAME CUSTOMER CLASS THAT WILL RECEIVE DIRECT BENEFITS FROM THE SERVICES ATTRIBUTABLE TO THE PROCUREMENT OF ENERGY STORAGE SYSTEMS.
(II) THE DISTRIBUTION SYSTEM BENEFITS ATTRIBUTABLE TO EACH CUSTOMER CLASS ARE REFLECTED.
(III) THE ALLOCATION OF COSTS ACCOUNT FOR ALL 20260HB2380PN3630 - 16 - EXISTING SURCHARGES AND COMMISSION-APPROVED TARIFFS APPLICABLE TO THE PEAK DEMANDS OF LARGE INDUSTRIAL AND COMMERCIAL CUSTOMERS.
(P) APPLICABILITY.--THIS SECTION SHALL NOT APPLY TO:
(1) AN ELECTRIC DISTRIBUTION COMPANY WITH FEWER THAN 500,000 CUSTOMERS.
(2) ENERGY STORAGE SYSTEMS WITH LESS THAN 50 KILOWATTS OF CAPACITY.
(Q) CONSTRUCTION.--NOTHING IN THIS SECTION SHALL BE CONSTRUED TO CONFLICT OR SUPERSEDE THE JURISDICTION OF THE FEDERAL ENERGY REGULATORY COMMISSION OR THE RULES OR TARIFFS OF THE INDEPENDENT SYSTEM OPERATOR OR ITS FUNCTIONAL EQUIVALENT.
(n) (R) Definitions.--As used in this section, the following <-- words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:
"FRONT-OF-THE-METER"Long-duration ENERGYstorage." STORAGEAn SYSTEM."energy ANstorage ENERGYsystem <--that STORAGEis SYSTEMcapable INTERCONNECTEDof TOdispatching THEenergy DISTRIBUTIONat ORthe TRANSMISSIONsystem's SYSTEMfull ANDrated CAPABLEnameplate OFcapacity PARTICIPATINGfor INa THEperiod WHOLESALEof MARKET10 ORhours DISTRIBUTIONor SYSTEMmore. GRID SERVICES.
"Long-duration20260HB2380PN3424 - 10 - "Short-duration storage." An energy storage system that is 20260HB2380PN3630 - 17 - capable of dispatching energy at the system's full rated nameplate capacity for a period ofgreater 10than two hours orbut more.less than 10 hours.
"MULTIDAY STORAGE." AN ENERGY STORAGE SYSTEM THAT IS CAPABLE <-- OF DISPATCHING ENERGY AT ITS FULL RATED NAMEPLATE CAPACITY FOR A PERIOD OF 24 HOURS OR MORE.
"Short-duration storage." An energy storage system that is capable of dispatching energy at the system's full rated nameplate capacity for a period greater than two hours but less than 10 hours.
20260HB2380PN363020260HB2380PN3424 - 1811 -