Overview of FERC Order No. 755 and proposed MISO implementation

Frequency regulation is an important feature of electric power systems. In several electricity markets, it is traded as an ancillary service and is procured by the independent system operator (ISO). Typically service providers are conventional generators with automatic governor control. In the recent past, energy storage devices such as flywheels have started offering frequency regulation service. With these devices capable of providing a better regulation in comparison with conventional generators, there has been a move to alter FERC regulations to remunerate ancillary service providers of frequency regulation based on their quality and quantity of service. This paper reviews various forms of energy storage systems that hold a promise for a role in electricity markets. Thereafter, the paper reports and discusses the new Order 755 promulgated by FERC to remunerate frequency regulation service providers. Finally the paper reports the proposed MISO implementation of FERC Order 755 and a few examples to illustrate it.