California PUC – Decision on Multiple-Use Applications for Energy Storage (2018)
Component
Institutional
Author
Issued by the California Public Utilities Commission (Commission decision by commissioners and Administrative Law Judge).
Stakeholder
California Electric Utilities (PG&E, SCE, SDG&E), CAISO (California ISO – Wholesale Market Operator), developers/owners, customers
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.