The purpose of this study is to determine the capabilities and cost-effectiveness of a lower-cost-of-manufacture Flywheel Energy Storage (FES) System. The core of this particular FES System technology involves the development of a lower-cost steel flywheel, which will reduce the first cost of the energy storage device, while delivering the required energy storage. This report is necessary to help determine if the technology can be used effectively for grid stabilization, over-generation mitigation and conventional energy storage uses. It appears that this technology may result in significant energy system benefits worthy of adoption into the California Center for Sustainable Energy's (CSE) Self-Generation Incentive Program (SGIP).