Explore state regulatory opportunities to advance grid edge resource participation in wholesale markets. The report addresses challenges such as dual compensation and emphasizes the need for clear procedures and documentation to validate grid edge resource participation strategies.

Directs Maryland’s investor-owned utilities to launch pilot programs under the DRIVE Act, including time-of-use rates, vehicle-to-grid (V2G) integration, and non-wires alternatives. Establishes reporting timelines, requires tariff filings, and initiates rulemaking on grid edge resource interconnection.

The report builds upon existing literature and leading examples of grid edge resource pricing and programs in practice to equip commissioners and staff at Public Utilities Commissions and state energy offices with the fundamentals of aggregated grid edge resource grid services, valuation options, and approaches to compensation.

Establishment of a temporary tariff and a pilot program for electric distribution system support services. Where the services mean dispatch and control of distributed resources for local or system peak demand reduction, demand response, facilitating hosting capacity for additional distributed resources, and avoiding or deferring transmission or distribution upgrade or capacity expansion.

Seek comments on adapting existing interconnection and metering regulations to address the integration and participation of grid edge resource aggregation resources in wholesale markets. It focuses on preventing dual compensation, ensuring accurate registration, and maintaining grid reliability.

Finalizes new tariffs and programs and compensation rates and incentives for customers that use grid edge resources to provide grid services to Hawaiian Electric.

The Missouri Public Service Commission modified its prior policy to allow third-party aggregators of retail customers to enroll large commercial and industrial (C&I) loads in wholesale market demand response programs. In an October 2023 order, the PSC partially lifted its 2010 ban on retail demand response aggregation, permitting C&I customers with a load ≥100 kW to participate in Midcontinent Independent System Operator (MISO)/Southwest Power Pool wholesale demand response either directly or through an ARC . (Smaller customers and those already in utility DR programs remain under the ban for now.) The purpose is to gain experience with DER aggregators providing wholesale services while maintaining reliability for other ratepayers . This ruling established conditions for utility-aggregator coordination and ensured only eligible large customers (often with on-site generation or flexible load) can be aggregated, thereby managing any cost or grid impact. The order explicitly notes it is a “partial” opt-in, with the PSC retaining the retail opt-out for residential and small customers until further review.

In response to FERC Order 2222, the Indiana Utility Regulatory Commission initiated stakeholder meetings to discuss the integration of grid edge resource aggregations into wholesale markets. Key areas of discussion include interconnection processes, operational oversight, cost allocation, and the regulatory status of grid edge resource aggregators. The goal is to develop rules and procedures that facilitate grid edge resource participation while maintaining grid reliability.

Framework for substation microgrids to mitigate public safety power shutoffs. The framework comprises eight essential elements: (1) a 10-year historical lookback analysis; (2) emissions performance standards; (3) technology market development standards; (4) an alternatives analysis; (5) a procurement strategy; (6) a rate architecture and cost allocation methodology; (7) demand response measures; and (8) community engagement and access measures.

This report, written to assist the Arkansas Public Service Commission, discusses the regulatory considerations for allowing third-party aggregators to participate in energy markets. It emphasizes the importance of establishing a code of conduct to ensure fair competition between utilities and aggregators, protect consumer interests, and create a robust market environment.

A framework for integrating grid edge resources focused on establishing defined retail energy and distribution grid services, including rate design such as the implementation of time-of-use rates to incentivize customers to align energy consumption with grid needs; grid edge resource programs that compensat customers for energy exports and grid services, like the introduction of the smart grid edge resource tariff and bring-your-own-device tariff; and streamlining interconnection processes and updating technical standards to facilitate grid edge resource participation.

Massachusetts Department of Public Utilities initiated Docket 20-75 in 2020 to explore compensation mechanisms for resilience services provided by grid edge resources. This investigation supports the implementation of the peak energy standard, aiming to incentivize alternative energy technologies during peak demand periods. The docket focuses on planning, cost allocation for grid edge resource interconnection, and resilience value.

Directs the Commission to develop a methodology for evaluating the costs and benefits of using grid edge resources for NWA.

The New York PSC established a standardized aggregator code of conduct to ensure fair, transparent grid edge resource markets. It sets uniform rules for marketing, data sharing, and customer protections—prohibiting deceptive practices, defining rights and responsibilities, and requiring standardized disclosures and utility coordination to support oversight and ethical aggregator operations.

As part of broader direction from the Minnesota Public Utilities Commission on aspects related to integrated distribution planning, this order outlines non-wires alternatives analysis that Xcel Energy should perform.

The California Public Utilities Commission issued a decision establishing 11 rules to govern how energy storage grid edge resources can "stack" multiple services across the distribution system and wholesale market. The goal was to enable storage to realize full economic value by providing services in different "domains" (customer, distribution, transmission, wholesale) while maintaining reliability. For example, a battery on the distribution grid may also provide resource adequacy and California Independent System Operator wholesale market services. The rules prioritize reliability over other uses and ensure no conflicting obligations or double payments for the same service. This ruling effectively set the framework for DER aggregators to offer distribution-level services and participate in wholesale markets under clear conditions.