Abstract: Along with the development and grid integration of massive variable energy resources,mainly including wind and solar generation,large-scale energy storage systems with capability of instantaneous and precise output control can effectively assist automatic generation control（AGC） and provide superior quality of frequency regulation service for power systems.The fundamental framework of frequency regulation compensation newly issued by Federal Energy Regulatory Commission（FERC） of United States and the corresponding latest proposals of new market designs by independent system operators（ISOs）/ regional transmission operators（RTOs） are introduced.Suggestions for further improvement of frequency regulation market are proposed based on an analysis of regulatory practice and operational experience of frequency regulation service in China,as well as its existing issues.