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Utility Seeks Approval For Two Long-Term PPAs To Collectively Serve 15% Of Default Service Load
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Pepco in the District of Columbia sought D.C. PSC approval for two long-term PPAs bundling renewable energy supplies and Tier One RECs which would in aggregate cover 15% of SOS load
The PPAs resulted from an RFP that the PSC had directed to serve up to an additional 20% of electricity SOS supplies through long-term contracts (a prior PPA has been approved which will serve 5% of SOS under long-term contract; if the two new PPAs are approved, a total of 20% of SOS would be under a long-term contract)
See background here
Pepco said that the two Agreements are
estimated to increase SOS costs by $2.73 and $0.85 respectively, per month, for the
duration of the Agreements for the typical residential customer.
The first Agreement is for a term of 25 years, for approximately 12.0% of total SOS
load. The associated project is expected to come on-line in 2030. The project has a 195 MW
installed capacity, and Pepco would be taking all generated energy and renewable energy
credits (RECs) from this facility.
For this first PPA, Pepco said, "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," but Pepco said that, "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".
The second Agreement is for a term of 20 years, for approximately 3.0% of total SOS
load. The associated project is being built in two phases with the first phase expected to come on-line in late 2027 and the second phase in 2029. The total project has a 60 MW installed capacity (Phase 1 is 40 MW and Phase 2 is 20 MW), and Pepco would be taking all generated energy and renewable energy credits (RECs) from this facility.
Pepco said, "This [second] agreement does allow the developer to curtail generation in times of negative PJM pricing to protect project economics, however it also provides for damages in the event that the renewable generator does not provide the contracted-for supply during the term of the Agreement."
Pepco asked that the current biennial SOS review process discuss how to integrate these PPAs into the SOS portfolio
FC 1017
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August 14, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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