For purposes of this chapter, the following terms have the following meanings:
(a)
(1)“Energy storage system” means commercially available technology that is capable of absorbing energy, storing it for a period of time, and thereafter dispatching the energy. An “energy storage system” may have any of the characteristics in paragraph (2), shall accomplish one of the purposes in paragraph (3), and shall
meet at least one of the characteristics in paragraph (4).
(2)
An “energy storage system” may have any of the following characteristics:
(A)
Be either centralized or distributed.
(B)
Be either owned by a load-serving entity or local publicly owned electric utility, a customer of a load-serving entity or local publicly owned electric utility, or a third party, or is jointly owned by two or more of the above.
(3)
An “energy storage system” shall be cost effective and either reduce emissions of greenhouse gases, reduce demand for peak electrical generation, defer or substitute for an investment in generation, transmission, or distribution assets, or improve the reliable operation of the electrical transmission or distribution grid.
(4)
An “energy storage system” shall do one or more of the following:
(A)
Use mechanical, chemical, or thermal processes to store energy that was generated at one time for use at a later time.
(B)
Store thermal energy for direct use for heating or cooling at a later time in a manner that avoids the need to use electricity at that later time.
(C)
Use mechanical, chemical, or thermal processes to store energy generated from renewable resources for use at a later time.
(D)
Use mechanical, chemical, or thermal processes to store energy generated from mechanical processes that would otherwise be wasted for delivery at a later time.
(b)
“Load-serving entity” has the same meaning as defined in Section 380.
(c)
“New” means, in reference to an energy storage system, a system that is installed and first becomes operational after January 1, 2010.
(d)
“Offpeak” means, in reference to electrical demand, a period that is not within a peak demand period.
(e)
“Peak demand period” means a period of high daily, weekly, or seasonal demand for electricity. For purposes of this chapter, the peak demand period for a load-serving entity shall be determined, or approved, by the commission and shall be determined, or approved, for a local publicly owned electric utility, by its governing body.
(f)
“Procure” and “procurement” means, in reference to the procurement of an energy storage
system, to acquire by ownership or by a contractual right to use the energy from, or the capacity of, including ancillary services, an energy storage system owned by a load-serving entity, local publicly owned electric utility, customer, or third party. Nothing in this chapter, and no action by the commission, shall discourage or disadvantage development and ownership of an energy storage system by an electrical corporation.