FERC Orders

Order 784 — Third-Party Ancillary Services (2013)

Definition

Required transmission providers to allow third parties — not just the incumbent transmission owner — to competitively supply certain ancillary services to transmission customers, breaking the effective monopoly that vertically integrated utilities had over these markets in their service territories. Mandated competitive procurement processes where viable markets exist, promoting price efficiency and opening revenue opportunities for independent generators, demand response providers, and energy storage. This competition for ancillary services lowered costs for transmission customers and created merchant markets for grid support services previously controlled by incumbents.

📚

Topic Deck

FERC Orders

Ready to test yourself?

Practice this term with interactive flashcards

▶  Open Flashcard Trainer