The event that led to the initial complaint seemed innocent enough: the confluence of above average snow and runoff, high spring winds and low energy demands (typical during spring and fall) led to an excess power supply. Following its own Oversupply Management Protocol (OMP), the BPA (Bonneville Power Administration) moved to first minimize thermal generation output and then to decrease hydropower, just to the point where dissolved gases from spillover wouldn’t endanger wildlife. At that point, still experiencing an oversupply situation, it signaled for wind generators to curtail production. […]

FERC’s ruling may also lead to an increased interest in centralized energy storage. The ruling, taken in tandem with FERC’s latest ruling on frequency regulation, is certain to have investors considering the merits of building large energy storage projects near the step-up points of intermittent energy sources, both as a way to hedge against curtailment protocols and create new cash flows by providing fast ramping frequency regulation.