An optimization controller for a battery includes a high level controller configured to receive a regulation signal from an incentive provider cat a data fusion module, determine statistics of the regulation signal, and use the statistics of the regulation signal to generate a frequency response midpoint. The optimization controller further includes a low level controller configured to use the frequency response midpoint to determine optimal battery power setpoints and use the optimal battery power setpoints to control an amount of electric power stored or discharged from the battery during a frequency response period.