Utilities At Issue - August 2022
DC Commission Approves Pepco Energy Efficiency and Demand Response Programs
The Public Service Commission of the District of Columbia (the Commission) recently approved a modified Pepco request to launch several energy efficiency and demand response programs (the EEDR Programs) designed – according to the Commission and Pepco – to reduce the amount of energy used by homes and businesses in the District of Columbia. The Commission approved several of the Pepco EEDR Programs, including programs that will offer financial incentives and other assistance to eligible AOBA Members. However, the Pepco programs will only be offered to buildings less than 50,000 square feet and not subject to the 2019 BEPS Compliance Cycle. DCSEU will serve buildings larger than 50,000 square feet. The specific programs targeted to AOBA Members and other eligible commercial customers are:
- Small Business Program, under which small businesses, whose energy demand does not exceed 100 kilowatts, are eligible for a “Quick Home Energy Check-Up,” with direct installation measures and retrofit opportunities. Small businesses may also receive financial incentives, technical assistance, and energy efficiency information.
- Commercial Behavior Based Program, under which a “Commercial Engagement Portal” will be established to drive behavioral savings and customer engagement with Pepco accounts. This Program will also provide an evaluation of how insights from AMI data can increase customer satisfaction and participation in standard Demand Side Management programs.
- Midstream Program, under which instant rebates will be provided for the purchase of qualifying measures from manufacturers and distributors. The qualifying measures under this Program include HVAC equipment, kitchen appliances, smart strips and LED fixtures.
- Existing Buildings Program, under which a host of energy efficiency incentives will be offered to businesses under the following components: (i) Prescriptive, (ii) Custom and (iii) Retro commissioning.
- LMI (Low/Moderate Income) Home Energy Program, which among other things, will provide low-to-moderate single family and small multifamily buildings with four units or less with: (i) a Home Performance Audit to test for energy efficiency improvements and (ii) a Home Performance Job to work with contractors to deepen energy savings.
The Commission ruled that additional EEDR Programs proposed by Pepco and targeted at commercial customers – the “Commercial New Construction Program,” the “Small Commercial Demand Response Program” and the “Residential New Construction and Major Renovation Program – would be addressed in a separate proceeding. The focus of the Residential New Construction and Major Renovation Program will be on single-family homes and small multifamily buildings with four units or less.
In formal “Comments” submitted to the Commission, AOBA objected to the Pepco EEDR Program as too costly and, in some instances, duplicative. AOBA’s objection also charged that, given the fact that an open and competitive market for the services to be provided by the Pepco Programs currently exits, the Programs offered by Pepco were unnecessary.
In response to the objections presented by AOBA and other parties, the Commission reduced the total program cost from $117.6 million to $92.4 million, a 22 percent reduction. The Commission characterized the reduction as “reasonable” based, in part, on AOBA’s “concerns about the cost of Pepco’s proposed EEDR program.” Under the legislation passed by the DC Council authorizing Pepco to apply to the Commission for approval of the EEDR Program, Pepco will be permitted to recover the cost of the Program and the Company’s authorized return via a rate surcharge. The EEDR Rider rate surcharge will be recovered through a volumetric surcharge commencing January 1, 2023. At this time, we do not know the amount of the surcharge and its impact on rates. We expect Pepco to file the surcharge with the Commission later this Fall. AOBA will provide more information as it becomes available.
A copy of the Commission’s decision approving the Pepco EEDR Program and a copy of the AOBA Comments on the Pepco proposal are inserted below.
Commission Order July 2022
AOBA’s Filed Comments
Pepco DC Rates Will Increase January 1, 2023
- Pepco filed a Multi-year Rate Plan (MRP) May 30, 2019. The DC PSC issued its decision in July 2021 which increased base rates by $108.6 million beginning July 8, 2021, through December 31, 2023.
- Pepco’s rates increased by $21.8 million beginning July 8, 2021 through December 31, 2021 and increased again by $48.4 million on January 1, 2022.
- Pepco’s rates will increase by an additional $38.4 million on January 1, 2023 plus an additional increase of $44.1 million in proposed effective rate adjustments.
- Estimated distribution only bill impacts from Pepco’s July 2022 filing are included below.
Washington Gas Virginia Files Application To Increase Rates effective November 2022
- Washington Gas Light Company filed an Application with the Virginia State Corporation on June 29, 2022 requesting authority to increase its rates and charges for gas service in the Commonwealth by $48.0 million. This rate increase is in addition to the transfer of approximately $38.6 million relating to the costs of investments in infrastructure replacements made pursuant to the Company’s Steps to Advance Virginia’s Energy Plan (“SAVE Plan”) from the SAVE Rider to base rates.
- The Company’s requested rates will go into effect November 26, 2022 on an interim basis subject to refund. AOBA is in the process of reviewing the Company’s Application and will provide more information as the case progresses. AOBA intervened as a party to this proceeding and will file the testimony of an expert consultant in order to protect our members interests.
- Estimated distribution bill impacts provided by Washington Gas are summarized below.
