D.C. to Review Pepco Critical Peak Rebate Proposal, Ratepayer-Funded Smart Energy Services

The District of Columbia PSC has set for public comment Pepco's dynamic pricing proposals.

Among other things, Pepco has proposed to automatically place all District of Columbia residential distribution customers on a critical peak rebate program regardless of whether they purchase their energy supply through Pepco's Standard Offer Service or through a competitive supplier.

However, customers who participate in a supplier's or a curtailment service provider's demand response program that is bid into the PJM demand response market will not be able to participate in Pepco's CPR program to prevent duplicate bidding of the resource into the PJM market

Pepco said that the Peak Energy Savings Credit (PESC) dynamic pricing rate "will be applied to the distribution portion of customer bills" for customers who have AMI meters. Pepco proposes to establish an initial dynamic pricing credit of $1.25 per kWh.

As a critical peak rebate program, customers will have the opportunity to earn bill credits for energy reductions that occur during designated periods, but they will not be penalized or face higher electricity rates if they are unable to reduce their energy use.

Pepco's proposal also includes a pilot program of residential In Home Displays ("IHDs") to convey detailed energy usage information and dynamic pricing signals, with the cost of the program to be recorded as a regulatory asset and recovered through a subsequent base distribution rate case

Additionally, Pepco's proposal includes a pilot program to remotely reduce the load of window air conditioning units, with the cost of the program to be recorded as a regulatory asset and recovered through a subsequent rate case

Formal Case 1086