Council States Intent That Utility Shall Not Own Energy Storage
December 19, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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The Council of the District of Columbia passed as final an amended substitute of Bill B22-0904, which increases the District's RPS to 100%
While final text was not yet available, it is understood that the adopted version of the bill omits an earlier proposal that would have required that retail electric suppliers, and the SOS provider, use long-term PPAs with renewable resources for 80% of their overall supply requirements, and for 70% of their REC purchases used to meet the RPS.
The adopted bill as amended included a provision stating that various provisions are not intended to alter provisions in existing law prohibiting the ownership of energy generation assets by utilities.
The adopted bill does not include similar language (which was considered under drafts) that would make explicit that the bill does not disturb existing law prohibiting utility ownership of storage, as the Council felt such explicit provision was not needed
However, several Council members spoke during the bill's passage that it is not the intent of the bill to authorize the utility to own energy storage assets, which are considered generation
Provisions included in the bill include increasing the RPS to 100% Tier I resources by 2032 (from the currently required 50%). A 5.5% carve-out for solar energy by 2032 was established, increasing to 10% by 2041
The RPS will gradually increase from 2019 until 2032, with the first Tier I change occurring in 2021, with Tier I increasing to 26.25% at such time (from 20%), and the first solar tier increase occurring in 2019, with the solar tier increasing to 1.85% at such time (from 1.35%)
The law states for three years after January 1, 2019, the subsection related to increases in the RPS shall not apply to any contract entered into before the effective date of the legislation, provided, that such subsection shall apply to an extension or renewal of such a contract.
The law allows, upon PSC approval, for the utilities to offer energy efficiency and demand reduction programs. The PSC shall consider the impact of such programs on non-utility providers of such services in considering approval of any such utility programs, and whether utility programs impede the offerings to non-utility providers
The law authorizes the PSC to consider and approve an application by the electric utility to promote transportation electrification through utility infrastructure ownership and other programs and incentives, if the PSC finds such proposal to be in the public interest