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S.F. No. 3266 - Energy Storage Systems
Author: Senator David J. Osmek
Prepared By: Carlon D. Fontaine, Senate Counsel (651/296-4395)
Date: March 13, 2018


Section 1.  Definitions.  Provides definitions for “energy storage system” and “investor-owned utility” within the resource planning statute.

Section 2.  Energy storage systems assessment.  Requires investor-owned utilities to include an assessment of energy storage systems in any integrated resource plan or plan modification filed by an investor-owned utility. Specifies that the assessment:

  • consider energy storage systems as transmission and distribution-interconnected resources;
  • analyze energy storage systems as an alternative for and as an adjunct to generation resources for ancillary services and resource adequacy; and
  • require that in any prudence determination for a new resource acquisition that resource options analysis must include a storage alternative.

Provides considerations for the Public Utilities Commission in approving a plan with respect to an energy storage system assessment submitted by an investor-owned utility.

Section 3.  Cost-benefit analysis of energy storage systems.  Requires the commissioner of commerce to contract with an independent consultant selected through a request for proposal process to produce a report analyzing the potential costs and benefits of energy storage systems. Requires the study to be submitted to the Legislature by December 31, 2018.

Specifies that the study analyze the following:

  • cost savings to ratepayers from the provision of services, including, but not limited 
    to, energy price arbitrage, ancillary services, resource adequacy, and transmission and 
    distribution asset deferral or substitution;
  • direct-cost savings to customers that deploy energy storage systems;
  • an improved ability to integrate renewable resources;
  • improved reliability and power quality;
  • the effect on retail electric rates over the useful life of a given energy storage system 
    compared to the impact on retail electric rates using nonenergy storage system alternative
    over the useful life of the nonenergy storage system alternative;
  • reduced greenhouse gas emissions; and
  • other values related to the application of energy storage system technology.

Section 4.  Energy storage deployment targets.  Allows the Public Utilities Commission to consider and make a determination regarding appropriate energy storage deployment targets and any interim targets for each investor-owned utility to be achieved by December 31, 2025. Specifies that the PUC consider the targets within 180 days after the energy storage systems cost benefit analysis is submitted by the commissioner of commerce.

Section 5.  Appropriation.  Appropriates an unspecified amount in fiscal year 2019 from the renewable development account for the energy storage systems cost-benefit analysis in section 3.


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