Pepco Details How It Will Incorporate Output From Community Renewables Into SOS Supply, Rates

In comments concerning a review of electricity SOS in the District of Columbia, Pepco detailed impacts on SOS resulting from D.C.'s Community Renewables Energy Act, which assigns to Pepco as SOS Administrator the output from Community Renewable Energy Facilities

There are three changes in the SOS process that Pepco has identified at this time are necessary due to the implementation of CREA.

First, as set forth in Section 4103.4 of the Commission's Regulations, Pepco will track its costs of administration related to the purchase of electric supply from CREFs and include them in the calculation of the SOS Administrative Charge (a bypassable SOS component).

Second, as the Commission noted in Paragraph 8 of Order No. 17863, the SOS Administrator is to use energy produced by CREFs to offset wholesale supply in a manner that is most economically advantageous to SOS customers. Pepco said that it "expects" to use all of the energy produced by CREFs to reduce residential consumption, as reported to PJM. Offsetting the residential load will provide the highest revenue for CREFs' energy production, Pepco said. The residential load should be sufficiently large to absorb CREF energy production without resulting in negative hourly consumptions, which is not allowed in PJM settlements.

Finally, Pepco expects to introduce two new purchased power expenses -- the value of the Subscriber's applicable Community Net Metering (CNM) Credit, and the sum of payment to CREFs for unsubscribed energy -- which will be incorporated into the Procurement Cost Adjustment calculation (a bypassable SOS component).