|
|
|
|
|
Utility Seeks Approval For Long-Term Contract For Portion Of SOS
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
Pepco in the District of Columbia has sought approval of an agreement for a bundled procurement of renewable energy and Tier One renewable energy credits from a solar facility, to serve approximately 7% of total SOS load
The PSC had previously directed such a procurement of long-term renewable energy for SOS
7% of SOS load equates to approximately 172,000 MWHs per year based on approximately 2.3 million MHs [sic] sold by Pepco through SOS annually.
The solar project has a 75 MW installed capacity, and Pepco would be taking all generated energy and renewable energy credits (RECs) from the facility.
Pepco said that purchasing the facility's entire output avoids a potential barrier to development of the project, in contrast to a previously proposed long-term contract for renewable energy to serve SOS load. In the prior contract, Pepco only agreed to purchase a share of the prior project's output, and the prior counterparty terminated the agreement prior to the start of delivery because the counterparty could not find a buyer for the remaining output of the facility, preventing the project from getting financed
The newly proposed agreement has a term of 25 years
Pepco said that the proposed agreement incorporates a "competitive" contract price per MWh
Pepco said, "While the Agreement does allow for an up to 20% price increase to address specific market risks, such as tariffs and other potential changes in law, which could impact the cost of the project, the Agreement negotiated by Pepco mitigates the potential price increases to customers by limiting any such increase to a 'cap,' as specified in the Agreement, and provides for damages in the event that the renewable generator does not provide the contracted-for supply during the term of the Agreement."
Pepco said, "Pepco selected the 25-year duration contract given the materially positive price as compared to shorter durations and taking the full output of the Facility, which is approximately 7% of estimated SOS load, mitigates developer right to terminate."
Further details concerning the proposed agreement were filed on a confidential basis
FC 1017
ADVERTISEMENT Copyright 2025 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
July 14, 2025
Email This Story
Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• UPDATED 6/26 with correct contact email -- Senior Director of Operations - Retail Energy ***
|
|
|
|
|