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PSC's Capacity Market Task Force Submits Phase II Report
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The District of Columbia PSC's Capacity Auction Task Force has filed its Part II Report
The report states that there was no consensus regarding any long-term recommendations derived from the Task Force. There were no consensus positions reached by the working group.
The report summarizes potential policies and changes which were discussed by the task force, and the positions of various task force members
Pepco in its position statement said that it does not currently endorse any of the SOS revisions that it had raised in the task force solely for discussion purposes, or specific procurement reforms at this time
During task force meetings, potential adjustments to SOS were discussed, including:
• Shifting Capacity Cost Recovery from Summer to Winter
This proposal would aim to redistribute or smooth costs between seasons.
• Removing RPS Compliance From SOS Pricing
This proposal would allow more flexible REC procurement instead of tying REC purchases to SOS volumes.
• Using an INC/DEC Load Adjustment Mechanism (Used in Maryland)
Maryland uses an INC/DEC mechanism for SOS based on customers’ Peak Load Contribution (PLC), limiting unexpected swings in wholesale supplier-served load.
Reducing DC’s Two Annual SOS Auctions to a Single Auction
The task force also discussed demand-side solutions including TOU rates, managed charging, thermostat demand response, the Energy Wise Rewards Refresh program, behavioral and technical solutions, efficient products incentives, prescriptive and custom incentives, and behind-the-meter battery energy storage incentives.
"Members agreed to explore demand-side and customer-based programs designed to reduce peak load and overall energy consumption within the District of Columbia," the report states
Topics set for further discussion include expanded demand-response participation, distributed storage aggregation, and building performance standards aligned with the District’s decarbonization goals
Pepco proposes modernizing its residential direct load control (DLC) program and expanding enrollment while continuing to support customer-controlled smart thermostat options. Participating customers would receive enrollment incentives and monthly bill credits in exchange for allowing Pepco to cycle their HVAC systems during peak demand. Although customers cannot opt out of individual events, they may unenroll at any time.
Pepco also discussed Bring Your Own Device (BYOD) and rebate-based thermostat programs, which allow customers to participate using compatible smart thermostats while retaining full control and the ability to override events. These customers earn performance-based bill credits that reflect their delivered load reductions.
FC 1183
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January 23, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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