The entire project addresses the issue of mitigating additional intermittency and fast ramps that occur at higher penetration of intermittent resources, including wind generation, in the Bonneville Power Administration (BPA) and the California Independent System Operator (California ISO) control areas. The proposed Wide Area Energy Storage and Management System (WAEMS) will address the additional regulation requirement through the energy exchange between the participating control areas and through the use of energy storage and other generation resources. For the BPA and California ISO control centers, the new regulation service will look no different comparing with the traditional regulation resources. The proposed project will benefit the regulation service in these service areas, regardless of the actual degree of penetration of the intermittent resources in the regions.The project develops principles, algorithms, market integration rules, functional design and technical specifications for the WAEMS system. The project is sponsored by BPA and supported in kind by California ISO, Beacon Power Corporation, and the California Energy Commission (CEC).This report provides a summary of results obtained in the first phase of the project. These tasks addressed in Phase 1 are as follow:• Evaluate and compare energy storage options. Review the world experience. Identify top three technologies that can meet the needs of this project.• Design and evaluate configurations and integration schemes of the energy storage, generation resources, their combinations, and other options. Identify the most promising configurations and their benefits.• Analyze technical and market compatibility of the proposed integration schemes with the existing regulation and load following systems at BPA and California ISO.• Collect data needed for experiments at BPA and California ISO.• Develop algorithms for the energy storage and generation control. Implement them as MATLAB TM codes.• Conduct experiments using the MATLAB TM model and collected data. v• Carry out the cost benefit analysis based on simulation results.• Provide a summary of results and recommendations to BPA on continuation of the project.The main results obtained in Phase 1 are as follow:• Based on the developed set of selection criteria, an extensive literature review, and an analysis of the worldwide industrial experience, the most suitable energy storage technologies have been identified for the project. They include flywheel energy storage devices (ESDs), pumped or conventional hydro power plants, and sodium sulfur or nickel cadmium batteries.• Using a developed set of requirements and an analysis of various configurations, a preferred WAEMS service architecture has been selected. A configuration with two ESDs was elected as the main variant: an aggregate of a flywheel ESD and a pumped storage (or a conventional hydro power plant). The one-ESD configuration can be also used as a first step toward the two-ESD configuration, or as an alternative architecture. The aggrega...