RM16-23 (Final Rule)--Commissioner Chatterjee's Statement

Statement of
Commissioner Neil Chatterjee on
Electric Storage Participation in Markets Operated by RTOs and ISOs
Date: February 15, 2018

Docket Nos.: RM16-23-000;
AD16-20-000
Item No.: E-1

“Today’s storage rulemaking is a significant achievement, one that would not have been possible without the excellent
work of many across this building. As always, I’m immensely grateful for the expertise and dedicated efforts of the
staff, my colleagues, and my team which resulted in this order.
“This storage rulemaking is a clear example of something I learned rather quickly when first coming onto the
Commission — that is, the perception of FERC’s processes outside this building is not always reflective of the reality
within it.
“As I was making my way through the Senate confirmation process, I and others on Capitol Hill, were under the
impression that this rule would be finalized in short order, and, as such, I committed to Senators Ed Markey and
Sheldon Whitehouse that I would make the storage rulemaking one of my top priorities. My sense that this could be
accomplished quickly changed significantly after I came on as Commissioner and began digging deeper into the
complexities of the rulemaking. I realized that although the staff worked diligently on the rulemaking throughout the
no quorum period, the issues addressed in this order were more intricate than I first thought and they required
additional efforts to properly tackle them.
“Even still, I intended to keep my commitment to Senators Markey and Whitehouse, and as I began my short time as
Chairman, I had the opportunity to drive that process forward. It continued as I stepped into my role as Commissioner,
where I’ve had the privilege of working with my colleagues and staff to reach a conclusion that resolves many of these
complex issues. That hard work has yielded what I believe is a very thoughtful and well written final rule, one that we
as a Commission can be proud of.
“Not only is this rulemaking a win for both consumers and industry, but it is also the kind of positive regulatory action
that removes barriers to competition, allowing emerging technologies to compete in the marketplace. Ultimately, that
means greater reliability and lower costs for the American people. Importantly, the storage rulemaking also recognizes
the value of empowering different regions in taking focused actions that best address their individual challenges rather
than forcing upon them a one-size-fits-all, top-down approach. Put simply, it’s good regulatory policy that people from
all political backgrounds can support.
“While today’s action in finalizing the storage portion of the rulemaking is certainly a significant step forward, I
recognize that our work is not done when it comes to addressing the issue of distributed generation.
“After thoroughly reviewing the record, I acknowledge the significant legal and technical challenges associated with
the issue at hand. I am pleased that we are moving forward with the technical conference on this matter, which I
believe is a prudent next step in confronting this complicated subject. Though we are setting this issue for a technical
conference, I remain committed to moving forward in a timely manner. Distributed energy resources are becoming
increasingly more integral to our resource mix, and we at the Commission should make every effort to advance this
issue without delay.”