operational flexibility.
(b) Rulemaking.--Within five years of the date the first
pilot program is approved under subsection (a), the commission
shall evaluate the results of each approved pilot program and
determine the circumstances under which the ownership,
development and deployment of energy storage and microgrids by
electric distribution companies may be in the public interest.
Within 60 days of the determination, the commission shall
commence a rulemaking to establish regulations to further the
deployment of energy storage and microgrids consistent with the
objectives under subsection (a)(1) and (2). Nothing under the
rulemaking shall require an electric distribution company to
own, develop or deploy energy storage or microgrids.
(c) Recovery.--An electric distribution company shall be
permitted to recover in the electric distribution company's
distribution rates established under section 1308 (relating to
voluntary changes in rates) a pretax return on, and a return of,
the original cost of an energy storage facility or microgrid
constructed pursuant to an approved pilot program or regulations
promulgated under this section and the reasonable, prudently
incurred expenses to operate and maintain the facility.
(d) Wholesale market participation.--Energy storage and
microgrids authorized under this section may participate in
wholesale energy markets with net proceeds from participation
credited to customers.
(e) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Distributed energy resource." Any of the following:
(1) A distributed generation resource.
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