PSC Sets Meetings On Adding Long-Term Contracts To SOS, Investigation Of SOS Reconciliations

May 22, 2019

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Reporting by Paul Ring • ring@energychoicematters.com

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The Public Service Commission of the District of Columbia will hold the second Standard Offer Service (SOS) Working Group meeting on Friday, June 7, 2019

AT such meeting, the Working Group will continue to address the requirements for a draft request for proposals for long-term renewable energy purchase power agreements for electricity generated by solar or wind power facilities located within the PJM Interconnection region to provide a target quantity of five (5) percent of the SOS load and related matters, consistent with the PSC's prior order which had been exclusively first reported by EnergyChoiceMatters.com (FC 1017)

Separately, the Public Service Commission of the District of Columbia will hold the second Procurement Cost Adjustment (PCA) Technical Conference on Thursday, June 13, 2019.

At such meeting, the Commission will continue its investigation into the Potomac Electric Power Company (Pepco) determination of the PCA for Standard Offer Service. (FC 1134)

In a notice for a prior technical conference in the PCA proceeding, the PSC had noted that Pepco represents that it calculates the current monthly PCA using a deferred balance approach which is computed using all the costs and revenues for providing SOS that have been continuously accumulating since May 2005 when the initial tariff implementing SOS in the District of Columbia went into effect. Each month, the total monthly generation and transmission revenue collected from SOS customers is subtracted from the total monthly generation and transmission expenses incurred to provide SOS services. That number, which may be positive or negative, is then added to the previous month’s generation and transmission-related cumulative deferred balance going back to 2005. According to Pepco, this new cumulative deferred balance is then divided by a 12-month rolling sales forecast to develop the generation and transmission component of the PCA, resulting in a monthly debit from or a credit to SOS customers

At the time of such prior notice (May 2018), the PSC said that it was interested, among other things, in better understanding how the PCA operates and whether there are alternative methodologies for calculating the PCA to be billed to SOS customers. For example, Delmarva Power & Light Company calculates the PCA annually using one year’s data as opposed to a monthly calculation.

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