On Thursday, July 18, 2013, FERC issued Order No. 784, the final rule on third-party provision of ancillary services and the accounting and financial reporting for new electric storage facilities (“Final Rule”). FERC stated that the Final Rule, which will revise its regulations to reform its “Avista” policy, will provide additional rate flexibility for purchasers and sellers of ancillary services and increase transparency and competition in ancillary services markets.

Specifically, FERC has provided new means by which sellers can demonstrate a lack of market power in third-party sales of ancillary services in order to obtain expanded market-based rate authority for sales of such services. [Read more →]