Federal Energy Regulatory Commission Issues Delegated Order Granting Market-Based Rate Authority to TES MAS23 Energy Storage, LLC

Strategic Insights -

The Federal Energy Regulatory Commission (FERC) has issued a delegated order, effective May 29, 2025, granting market-based rate authority to TES MAS23 Energy Storage, LLC. This decision allows the company to sell energy, capacity, and ancillary services at market-based rates. The company's market-based rate tariff, submitted on April 10, 2025, was accepted for filing, with the requested effective date of April 11, 2025.

Key Takeaways:

  • The FERC granted market-based rate authority to TES MAS23 Energy Storage, LLC, allowing the company to sell energy, capacity, and ancillary services at market-based rates.
  • The company's market-based rate tariff was accepted for filing, with the requested effective date of April 11, 2025.
  • TES MAS23 Energy Storage, LLC is designated as a Category 1 seller in all regions, based on the company's representations that it is owned by Caterpillar Inc. and owns or controls 5 megawatts of generation capacity in the ISO New England Inc. (ISO-NE) market.
  • The company satisfies the Commission's requirements for market-based rate authority regarding horizontal and vertical market power.
  • Applicant's request for waiver of Subparts B and C of Part 35 of the Commission's regulations, requiring the filing of cost-of-service information, was granted, with the exception of sections 35.12(a), 35.13(b), 35.15, and 35.16.
  • Applicant's request for waiver of Part 41 and Part 141 of the Commission's regulations, concerning accounting and reporting requirements, was granted, with the exception of 18 C.F.R. § 141.15.
  • The company must file Electric Quarterly Reports (EQRs) with the Commission, consistent with Order Nos. 200111 and 768.
  • Applicant must timely report to the Commission any change in status that would reflect a departure from the characteristics the Commission relied upon in granting market-based rate authority.

Statistics:

  • 5 megawatts of generation capacity: The amount of generation capacity owned or controlled by TES MAS23 Energy Storage, LLC in the ISO New England Inc. (ISO-NE) market.
  • April 10, 2025: The date on which the company's market-based rate tariff was submitted to the FERC.
  • April 11, 2025: The effective date of the company's market-based rate tariff.
  • 18 C.F.R. § 375.307: The authority delegated to the Director, Division of Electric Power Regulation - West, under which this order was issued.
  • 30 days: The timeframe within which requests for rehearing by the Commission may be filed.

Sources:

  • FERC Electric Tariff, Vol. No. 1, MBR Tariff (0.0.0)
  • Order No. 697, 119 FERC P 61,295
  • Order No. 697-A, 123 FERC P 61,055
  • Order No. 861, 168 FERC P 61,040
  • Order No. 860, 168 FERC P 61,039
  • Order No. 768, 140 FERC P 61,232
  • Order No. 770, 141 FERC P 61,120