PSC Staff, Utility Both Propose Long-Term Renewable Contract Equal To 5% Of SOS Load Should Not Be Used To Serve SOS Customers
August 2, 2019 Email This Story Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Staff of the District of Columbia PSC and Pepco have both agreed that a previously directed procurement of a long-term renewable PPA for 5% of SOS load should not be used to serve SOS load, as both agree that the PPA's products should instead be sold into the wholesale market, with all distribution customers receiving a charge (or credit) from the PPA.
However, the PSC also directed a working group to develop an RFP for the PPA, and, in doing so, the PSC directed that the working group should also consider how to mitigate the risks associated with long-term renewable energy PPAs.
As a result of the working group process, both Pepco and PSC Staff support a PPA under which the output would not be used to serve SOS customers. Instead, the products under the PPA would be sold into the wholesale market, with all distribution customers receiving a charge (or credit) from the PPA. This is similar to how long-term renewable contracts procured by the EDCs are used in Massachusetts ("MA Model").
While Staff and Pepco both agree on not using the PPA for SOS, they do disagree on the counterparty for the PPA. Staff supports having Pepco be the counterparty. Due to imputed debt concerns, Pepco recommended having a city agency serve as the counterparty, with Pepco responsible for billing and remitting customer payments under the PPA.
Pepco has filed a draft RFP to implement its proposal