Texas PUC Commissioner Kenneth Anderson, in a memo concerning a draft preliminary order regarding AEP Texas North's petition for authorization to install two batteries on its distribution system, said that Tesla has raised an interesting issue concerning batteries which serve as T&D assets as well as providing energy market functions, but said that the issue is better addressed in any future rulemaking on storage.

As first reported by RetailEnergyX.com, Tesla Motors, Inc, filed a notice of intervention to participate in the petition of AEP Texas North for authorization to install two batteries on its distribution system, with Tesla recommending that the Texas PUC, "consider approving a regulatory framework that would allow for 'multi-use energy storage systems' that provide both transmission/distribution functions as well as wholesale energy market functions while remaining consistent with existing state law."

"For example, a multi-use energy storage system may offset the need to build a new distribution line that would otherwise be required to meet a local peak need ten-days per year while also participating in wholesale energy markets providing energy shifting and ancillary services the other 355 days per year. Currently, Texas lacks a regulatory framework to enable multi-use energy storage systems but it is possible to develop such a regulatory framework within existing state law," Tesla claimed 

In his memo, Anderson wrote, "Potential intervenor Tesla Motors, Inc. raises an interesting issue, however, their request is outside the scope of this [AEP TNC] proceeding. The creation of a regulatory framework for multi-use energy storage systems would be better raised in an applicable rulemaking."

Anderson proposed the preliminary order exclude from the AEP TNC case issues relating to the adoption of a regulatory framework that would allow for multi-use energy storage systems.