D.C. Proceeds With Multi-Year SOS Procurement Despite Retail Auction Proposals, Says Changes Premature

The District of Columbia PSC recently approved Pepco's RFP for a portion of SOS suppliers for a three-year period beginning June 1, 2017.

In doing so, the PSC rejected pleas from retail suppliers who had sought to defer consideration of Pepco's annual SOS RFP due to the PSC's pending investigation of SOS design. Retail suppliers had noted that, given the three-year nature of small customer SOS contracts, moving forward with the annual RFP at this time could preclude any change in SOS until 2020.

Several retail suppliers have proposed moving to a retail auction model for SOS, which would be frustrated by the existence of SOS contracts through 2020.

At a minimum, retail suppliers had asked that the small customer SOS contracts be shortened to two years, to provide the PSC with more flexibility in changing SOS structure.

The PSC denied such requests

"RESA and Direct Energy are essentially asking that the Commission begin a transition from a wholesale SOS model to a retail model before the Commission has even considered whether moving to a retail model is in the public interest. Changing the length of contract terms for R&SC from three years to two years is simply premature at this point," the PSC said in an order last month, in approving Pepco's RFP which relies on the current SOS procurement length and design.