Utility Seeks Authority To Increase Amount Of Default Service Load Served Under Long-Term Contract
April 21, 2023 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Pepco in the District of Columbia sought flexibility to increase the amount of SOS load to be served under a long-term renewable energy contract, after a previously executed contract for 5% of SOS load has been terminated by the renewable developer
As previously reported, Pepco had entered into an agreement with a renewable developer which was to have begun in 2024 for a duration of 15 years, and which would have supplied approximately 5% of SOS load
Pepco reported that it received a letter from the counterparty to the agreement that, in accordance with the negotiated terms, terminated the agreement. Pepco reported that the counterparty invoked its contractual right to terminate because it had failed to contract for the sale of ninety percent (90%) of the project.
"While Pepco is disappointed in this short-term setback, the Company is also looking at the situation as an opportunity to explore additional renewable projects, both new and existing, to support a long-term PPA for renewable supply in the District, which would be consistent both with District policy and Pepco’s own strategic vision," Pepco said
Pepco said that, "Pepco proposes that the Commission issue an order directing Pepco to issue a new Request for Proposals (RFP) with more flexible terms that would attract more bidders to the RFP."
Notably, Pepco said that, "The terms could include, for example, more than 5% of SOS load and/or a longer contract duration."
"Expanding the terms of the RFP to allow for bidding by existing renewable projects, for example, should expand the pool of potential bidders to allow Pepco to select the best option for District customers," Pepco said