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Federal Register / Vol. 86, No. 59 / Tuesday, March 30, 2021 / Rules and Regulations Paragraph Nos.

2. Order No. 719 Demand Response Opt-Out
a. Requests for Clarification or Rehearing
b. Commission Determination
3. Small Utility Opt-In
a. Requests for Clarification or Rehearing
b. Commission Determination
4. Distributed Energy Resource Interconnection
a. Requests for Clarification and Clarification or Rehearing
b. Commission Determination
B. Eligibility To Participate in RTO/ISO Markets Through a Distributed Energy Resource Aggregation
1. Participation Model
a. Request for Clarification or Rehearing
b. Commission Determination
2. Double Counting
a. Request for Clarification or Rehearing
b. Commission Determination
C. Coordination
1. Distribution Utility Review
a. Requests for Clarification or Rehearing
b. Commission Determination
2. Information Sharing and Procedural Safeguards
a. Request for Clarification or Rehearing
b. Commission Determination
3. Duplication of Interconnection Review
a. Request for Clarification or Rehearing
b. Commission Determination
4. RERRA Involvement
a. Request for Clarification or Rehearing
b. Commission Determination
III. Information Collection Statement
IV. Regulatory Flexibility Act
V. Document Availability
VI. Effective Date and Congressional Notification

I. Introduction
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1. On September 17, 2020, the Federal Energy Regulatory Commission Commission issued its final rule final rule or Order No. 2222 adopting reforms to remove barriers to the participation of distributed energy resource 1 aggregations in the Regional Transmission Organization RTO and Independent System Operator ISO
markets RTO/ISO markets.2
1 Order No. 2222 amended the Commissions regulations to define a distributed energy resource as any resource located on the distribution system, any subsystem thereof or behind a customer meter.
Participation of Distributed Energy Resource Aggregations in Markets Operated by Regional Transmission Organizations and Independent System Operators, Order No. 2222, 85 FR 67094
Oct. 1, 2020, 172 FERC 61,247, at P 1 n.1 2020, corrected, 85 FR 68450 Oct. 29, 2020; 18 CFR
35.28b10. These resources may include, but are not limited to, resources that are in front of and behind the customer meter, electric storage resources, intermittent generation, distributed generation, demand response, energy efficiency, thermal storage, and electric vehicles and their supply equipment. Order No. 2222, 172 FERC
61,247 at PP 1 n.1, 114.
2 For purposes of Order No. 2222, the Commission defined RTO/ISO markets as the capacity, energy, and ancillary services markets operated by the RTOs and ISOs. Order No. 2222, 172 FERC 61,247 at P 1 n.2; see also 18 CFR
35.28b11. In this order, we modify 35.28g12i of the Commissions regulations to revise organized wholesale electric markets to
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Specifically, the Commission found that existing RTO/ISO market rules are unjust and unreasonable in light of barriers that they present to the participation of distributed energy resource aggregations in RTO/ISO
markets, which reduce competition and fail to ensure just and reasonable rates.3
To help ensure that RTO/ISO markets produce just and reasonable rates, pursuant to the Commissions legal authority under Federal Power Act FPA section 206,4 the Commission, in Order No. 2222, modified 35.28 5 of the Commissions regulations to require each RTO/ISO to revise its tariff to ensure that its market rules facilitate the participation of distributed energy resource aggregations.6
2. More specifically, Order No. 2222
requires each RTO/ISO to revise its tariff to establish distributed energy resource aggregators as a type of market participant that can register distributed energy resource aggregations under one or more participation models in the RTO/ISO tariff that accommodate the physical and operational characteristics instead read independent system operator or regional transmission organization markets.
3 Order No. 2222, 172 FERC 61,247 at P 1.
4 16 U.S.C. 824e.
5 18 CFR 35.28.
6 Order No. 2222, 172 FERC 61,247 at P 1.

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of each distributed energy resource aggregation.7 Under Order No. 2222, each RTO/ISO must include tariff provisions addressing distributed energy resource aggregations that: 1
Allow distributed energy resource aggregations to participate directly in RTO/ISO markets and establish distributed energy resource aggregators as a type of market participant; 2 allow distributed energy resource aggregators to register distributed energy resource aggregations under one or more participation models that accommodate the physical and operational characteristics of the distributed energy resource aggregations; 3 establish a minimum size requirement for distributed energy resource aggregations that does not exceed 100 kW; 4
address locational requirements for distributed energy resource aggregations; 5 address distribution factors and bidding parameters for distributed energy resource aggregations; 6 address information and data requirements for distributed energy resource aggregations; 7
address metering and telemetry requirements for distributed energy resource aggregations; 8 address coordination between the RTO/ISO, the 7 Id.

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