D.C. Energy Department Recommends Long-Term PPAs for SOS

The District of Columbia Department of Energy Environment (DOEE) suggested that the PSC adopt long-term PPAs for electricity SOS.

"One model that the Commission should consider is procuring SOS through long-term power purchase agreements (PPA)," DOEE said

An, "advantage to PPAs is price stability. Price stability is important to residential and small business ratepayers. It allows these ratepayers to budget by avoiding the volatility of the energy market," DOEE said

DOEE said long-term contracts would also support renewable generation development

"DOEE notes that market restructuring was predicated on the promise that market innovation would produce energy products superior to traditional supply under a vertically integrated model. And clearly, competitive suppliers have been able to develop superior products and services to induce many commercial ratepayers to leave SOS. The fact that most residential ratepayers are still on SOS may simply be the result of retail suppliers having failed to similarly develop superior products for the residential market," DOEE said

"However, the remedy for that situation cannot be to downgrade the quality of SOS by making it more expensive and maintaining its current level of carbon intensity.. DOEE does not believe that it would serve the public interest or the market to make SOS an unattractive product in order to make competitive suppliers’ products more attractive. After all, there are valid reasons other than inertia for deciding to remain with SOS," DOEE said

DOEE's comments came in a PSC docket reviewing the structure of SOS (FC 1017)