FERC Issues Final Rule on Third-Party Provision of Primary Frequency Response Service

The Federal Energy Regulatory Commission ("FERC") issued a final rule amending its regulations governing market-based rates for public utilities. The rule is intended to foster competition in the sale of primary frequency response service. The final rule permits the sale of such a service at market-based rates by sellers with market-based rate authority for sales of energy and capacity.

The final rule will become effective 90 days after publication in the Federal Register.