Citing Uncertainty on FERC Jurisdiction, D.C. Shelves Review of Dynamic Pricing

The District of Columbia PSC has suspended its review of potential dynamic pricing programs, including potentially making SOS a dynamic pricing program (or adding an optional SOS dynamic pricing rate), citing the uncertainty regarding what compensation, if any, will be available in the wholesale market for demand response.

"As a result of the D.C. Circuit's decision to vacate FERC Order 745 and the pending case before the Supreme Court, the future role of demand response in the PJM's capacity market is uncertain at this point in time. Until the Supreme Court makes its decision, we will not know how demand response programs will operate within PJM. If demand response becomes a demand-side resource, any payments through PJM markets will be terminated. Lacking additional funding from PJM, all demand response programs may become solely ratepayer funded programs. Each of these decisions will impact the type of dynamic pricing programs that can effectively operate in the District of Columbia. Thus, due to the current uncertainties regarding demand response in the PJM marketplace, we believe that it is best to suspend this proceeding at this time," the PSC said

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