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Texas ALJ Denies Summary Decision In AEP Texas' Petition To Own, Install Battery Storage

May 26, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

A Texas ALJ has denied a motion for summary decision filed by parties asking that the Public Utility Commission of Texas deny AEP Texas-North Division's application to install and own a lithium-ion battery in two locations on its distribution system

See background on AEP Texas' application here

Several stakeholders, including TXU Energy Retail Company, the Alliance for Retail Markets, the NRG Companies, and Texas Energy Association for Marketers (joint movants), had moved for a summary decision finding that the ownership and operation of energy storage facilities in the manner proposed by AEP Texas-North Division violates the Public Utility Regulatory Act (see story here)

The joint movants argued that AEP Texas's proposal to install lithium-ion battery facilities would violate the Public Utility Regulatory Act's (PURA) requirements regarding the separation of competitive and regulated business activities and the Commission's rules prohibiting electric utilities from providing competitive energy services. They argued that as a transmission and distribution utility (TDU), AEP Texas is barred from participating in the market for electricity.

AEP Texas argued that its proposal is not contrary to law or Commission rules because AEP Texas will not buy, sell, or take title to the electricity used in its proposed batteries, so it will not participate in the market for electricity as the joint movants assert. AEP Texas also argued that the proposed batteries will be distribution assets under PURA § 31.002(19) and 16 Texas Administrative Code § 25.341(5) and that the proposed batteries are necessary to transform and move electricity over the grid.

An ALJ ruled that, "The Movants did not prove as a matter of law, among other things, that AEP Texas would be participating in the market for electricity under PURA § 35.105, that AEP Texas would use its storage facilities to sell energy under PURA § 35.152, that the batteries are not necessary to transform and move electricity, or that the batteries will not be distribution assets."

"Additionally, fact issues remain as to how AEP Texas will use the batteries. Accordingly, the ALJ finds that the Joint Parties did not meet the standard for summary decision, and the motion is DENIED," the ALJ ruled

Docket 46368

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