Idaho regulators deny reconsideration request for Franklin Energy battery storage

Franklin Energy lost a regulatory battle last week in Idaho when state regulators denied a request to reverse
a previous decision on the contract terms governing four proposed battery storage facilities.

Franklin Energy planned on the construction of these facilities in the southern Twin Falls County. They
would hold batteries that would be charged with energy from nearby solar projects, with the electricity then dispatched to Idaho Power. Franklin claimed these projects should qualify for 20-year contracts at published rate, but Idaho Power said the projects were eligible only for two years as negotiated by Public Utility Regulatory Policies Act (PURPA) contracts.

PURPA requires electric utilities to purchase energy from qualifying independent power producers while granting state regulators authority to determine contract terms for eligible facilities. Anything larger than 100 kilowatts and powered by “intermittent” energy sources is eligible for two-year contracts. On average, Franklin’s battery plans would be capable of generating 2.5 megawatts.

Pulling from a 1990 order by the Federal Energy Regulatory Commission, regulators found that Franklin was indeed eligible for a two-year contract. Franklin objected, saying the Idaho Public Utilities Commission had exceeded its authority, thus rendering their decision unlawful. Now, the Commission has rejected that assertion as well, stating that Franklin failed to demonstrate the order was unreasonable, unlawful or in any way not conforming to the law.

“Franklin’s mischaracterization of our Final Order is a frivolous effort to contrive a legal basis for reconsideration,” the Commission said in its assessment.

If Franklin wishes to push the issue further, their only recourse would be to turn to the Idaho Supreme Court.