5.5.8 Opening New Revenues to Hydro

LPDD Recommendation:States should consider including pumped storage hydro as transmission assets entitled to cost-of-service rate recovery in their transmission planning as an alternative to construction of new transmission lines.”

LPDD Recommendation:RTOs and ISOs should enact market rules to accommodate the participation of energy storage (including hydro pumped storage) in energy markets, consistent with FERC’s final rule.”

LPDD Recommendation:RTOs and ISOs should establish new products and reform existing products that would adequately compensate ancillary services such as those provided by hydropower.”

FERC rule on pumped storage in RTO and ISO markets

Allows energy storage resources (including pumped storage) to more fully participate in organized electricity markets by removing barriers to these resources in the capacity, energy, and ancillary services markets operated by ISOs and RTOs.

FERC Order 890

Required that non-generation resources be evaluated on a comparable basis to services provided by generation resources, including hydro pumped storage.

Energy Policy Act of 2005

Established a program to support the expansion of hydropower at existing dams and impoundments through incentive payments. Congress funded this program in 2014 and 2016.