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PSC Opens Review Of SOS Procurement & Product Design With Eye Towards "Affordability" & Price Stability
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With an eye towards affordability and price stability, the District of Columbia PSC has initiated a biennial review of the electricity SOS process
The PSC said that, "an item of particular concern to the Commission is the affordability of electricity supply and any recommended SOS changes that could help lower or stabilize the price of electricity for District ratepayers."
The PSC specifically invited comment on a number of potential changes to the SOS procurements and products
Among other things, the PSC sought comment on whether alternatives to the current full requirements approach should be used. In the current delivery year, full requirements is used for 100% of SOS, but the PSC has already approved a long-term energy (non-full requirements) contract for 5% of SOS starting in December 2027, with the PSC also endorsing the use of long-term energy (non-full requirements) contracts for up to 25% of SOS, with the specific amount to be later determined by the PSC when addressing responses to an RFP for such long-term PPAs
The PSC asked whether capacity, renewable compliance RECs, and/or ancillary services should be procured separately as part of procuring supplies for SOS
For several of the potentially unbundled SOS products (including capacity), the PSC noted that such unbundled products could be procured via a separate auction, the use of an aggregator,
bilateral contracts, PPAs, energy storage, distributed energy resources, microgrids, and demand response.
With regards to capacity, if procured on an unbundled basis for SOS, the PSC asked for comment on the appropriate duration for any capacity product, whether the treatment of capacity (bundled vs. unbundled) should be different for various customer classes, and whether the procurements should be laddered
The PSC also asked whether there are mechanisms to reduce the District’s SOS capacity obligation, such as by use of demand-side management, DERs, time-of-use rate design, and price-responsive demand rates.
For the other potentially unbundled products (RECs, ancillary services), the PSC generally asked similar questions about the length of the product to be procured, the applicability to various customer classes, and whether staggering should be used
Aside from the SOS product bundling, the PSC asked for comment on SOS product term lengths
Currently, small customer (residential and small commercial) SOS is procured under three-year laddered contracts, with large customer SOS using one-year non-laddered contracts
The PSC invited comments on whether this approach should be changed
Additionally, the PSC sought feedback on whether the current SOS customer groupings should be modified. The current SOS rate classes are Residential, Small Commercial, and Large Commercial
The PSC also sought comment on the number of bid days for SOS procurements, and the frequency and timing of such. Currently, two bid days are used per year
Notably, the PSC asked whether the District's SOS procurement process should be combined with default service procurements in other PJM states
The PSC also broadly welcomed, "comments on any other appropriate adjustments to the SOS program in light of competitive developments in the District."
FC 1017
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Raises Potential Of Combining SOS Procurements With Other States
Considers Alternatives To Full Requirements Contracts, Including Separate Capacity Procurements
Changes To Customer Class Groupings Also Raised
December 23, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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