FERC Issues Significant Decision for Energy Storage Regarding Pay-for-Performance Tariffs

The Federal Energy Regulatory Commission (FERC) has proposed new rules that would compensate regulation energy storage technologies based on the benefits they provide to the electric grid.

Boston, Massachusetts, March 9, 2011-- The Federal Energy Regulatory Commission (FERC) has proposed new rules that would compensate regulation energy storage technologies based on the benefits they provide to the electric grid. Andrew O. Kaplan, a Partner in Brown Rudnick's Energy & Utilities Group, who pursued the FERC decision in his ongoing representation of energy storage company Beacon Power Corporation (Nasdaq: BCOND) stated that "FERC's decision to propose new pay-for-performance market rules indicates the Commission's continuing support of the energy storage marketplace and will encourage additional investment in technologies that can be used to regulate the grid quickly and accurately." F. William Capp, Beacon Power President and Chief Executive Officer, views the decision as "a major step in recognizing the superior value that faster-responding regulation resources bring to the grid." Mr. Capp noted that "Brown Rudnick has been a significant member of Beacon's team and our company has benefited enormously from their legal acumen and strategic thinking."

On February 17, 2011, FERC issued the Notice of Proposed Rulemaking that will require each of the grid operators under its jurisdiction to structure their regulation market tariffs to provide pay-for-performance. Under pay-for-performance tariffs, grid operators would implement a pricing structure that pays faster-ramping resources a higher price for their service. Because Beacon's flywheel systems react in seconds to a grid operator's control signal -- a response that is exponentially faster than conventional fossil fuel-based regulation resources, pay-for-performance tariffs would enable the company to earn increased revenue from any regulation services it provides in those markets. Such markets include the New York ISO, where Beacon is already operating a regulation facility that is expected to reach its full 20 megawatts of capacity in the second quarter of 2011.

About Brown Rudnick LLP
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About Beacon Power Corporation
Beacon Power Corporation designs, develops and is commercializing advanced products and services to support stable, reliable and efficient electricity grid operation. Beacon's Smart Energy Matrix(TM), now in production, being operated and earning revenue, is a non-polluting, megawatt-scale, fast-response flywheel-based solution designed to provide less expensive, more sustainable and effective frequency regulation services to the nation's power grid. The Company's business strategy is both to supply frequency regulation services from its own plants and to sell systems directly to utilities or grid operators in parts of North America and selected international markets. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. For more information, visit www.beaconpower.com.

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