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.

This document establishes Uniform Business Practices for grid edge resource suppliers in New York. It sets rules for sales agreements, marketing standards, data security, complaint handling, and regulatory oversight. It aims to protect customers from deceptive practices, ensure clear contract terms, and define the rights and responsibilities of grid edge resource providers.

Implements Maryland’s DRIVE Act by establishing a licensing framework for DER aggregators. It confirms PSC authority over DER aggregators, seekings to protect consumers while avoiding onerous requirements . The order sets direction for regulations and oversight of DER aggregators interacting with wholesale markets.

The North American Energy Standards Board (NAESB) Standardized Distribution Services Contract aims to enhance efficiency and consistency in transactions between utilities and DER aggregators. Developed at the request of the U.S. Department of Energy (DOE), the contract establishes standardized terms and conditions to minimize uncertainties and reduce costs associated with counterparty negotiations. It is designed to facilitate the acquisition of distribution services from grid edge resource aggregations, support the integration of aggregate grid edge resource services s, and promote greater operational and market coordination across distribution and wholesale interactions, aligning with FERC Order No. 2222 requirements.

It was developed based on the  Standard Distribution Services Contract – DOE, which is discussed below.

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.

Provides definitions, subscriber enrollment, verification and protection details, and a community solar bill credit mechanism. Sets separate capacity limits for community solar at 5 MW and agrivoltaic community solar at 10 MW.

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.

Maryland passed the Distributed Renewable Integration and Vehicle Electrification Act (House Bill [HB] 1256) in May 2024 that requires the state PSC to implement regulations that support bidirectional electric vehicle (EV) charging and that establish aggregate grid edge resource services pilot programs throughout the state (including incentive mechanisms that compensate EVs and other grid edge resource owners and aggregators).

This 2024 NY PSC Order launches the Grid of the Future proceeding (Case 24-E-0165), establishing policy requirements to ensure fair, non-discriminatory access for DER aggregators to provide grid services in New York. It directs utilities to develop a comprehensive plan detailing how operations, platforms, and market rules must evolve to integrate third-party aggregators on equal footing. The order calls for real-time coordination with aggregators across all grid levels, the adoption of advanced Information Technology/Operational Technolocy tools and adaptive control strategies to manage distributed resources, and the creation of uniform, value-based rules that treat utility-run and aggregator-run grid edge resources consistently while fairly allocating costs and benefits.

Advance Notice of Proposed Rulemaking Order—To solicit comments on proposed regulations governing the participation of grid edge resources and aggregate grid edge resource services in wholesale markets, focusing on preventing double compensation, ensuring data exchange, and establishing oversight mechanisms for DER aggregations.

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.

Minnesota Public Utilities Commission Order (April 11, 2023) conditionally adopting amended Technical Interconnection and Interoperability Requirements (TIIR) for grid edge resources. These requirements establish statewide technical standards for connecting alternative energy systems to the grid, with specific focus on advanced "smart" inverters. The order specifies implementation timelines and interim requirements, while the attached TIIR document details comprehensive technical standards for equipment performance, grid protection, metering, interoperability, and testing requirements. The new standards will take full effect when IEEE 1547-2018 advanced inverters become readily available in the market.

Adopts implementation rules for a Microgrid Incentive Program that targets placement of community microgrids to support populations impacted by grid outages.

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.

Library of resources providing state energy decision-makers with a summary of actions and considerations related to FERC Order 2222 implementation, focusing on establishing rules and requirements for grid edge resource and DER aggregation participation in wholesale markets.

Senate Bill (SB) 1699 establishes requirements for third-party aggregation of grid edge resources and authorizes the Public Utility Commission of Texas (PUCT) to develop rules and requirements for DER aggregators. The legislation aims to create a framework that allows aggregators to participate in providing grid services, utilizing optimization tools and control systems to manage grid edge resources effectively. This initiative is part of Texas's effort to meet rising energy demand while mitigating costs for ratepayers.

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.