Ohio Utility Seeks Approval For Battery Storage Pilot, Would Participate In PJM Regulation Market, Potentially Others

Duke Energy Ohio has filed at the Public Utilities Commission of Ohio for approval of a battery storage pilot project, as the utility is proposing to install a lithium ion battery, rated for approximately 3.95MW/8.9MWH, adjacent to the existing McMann substation in Union Township, Ohio.

A prior stipulation approved by PUCO allows Duke to invest up to $20 million in battery storage projects for the purpose of deferring circuit investments or addressing distribution reliability issues

In its filing, Duke said that the primary application of the proposed McMann project will be to reduce the peak load on the circuit, in order to defer the need for an additional transformer and other distribution upgrades at that location.

Duke added that, "If authorized by the Commission, the battery will also participate in the PJM regulation market when it is not otherwise needed to reduce peak load on the circuit."

"Duke Energy Ohio may potentially provide other services to PJM in the future as a result of the implementation of FERC Order 841 [electric storage participation in wholesale markets]," Duke said

Duke said that revenue from participation in the PJM voltage regulation market, net of any associated costs, would be credited to customers through nonbypassable Rider DCI (Distribution Capital Investment), thereby reducing the overall costs of the project to customers.

The total estimated cost for the McMann project is approximately $11.7 million

Case No. 19-2223-EL-UNC