PSC Staff In Retail Choice Market Say Utility Not Prohibited From Owning Generation (Including Distributed Generation)

It is the opinion of Staff of the District of Columbia PSC that the utility Pepco is not prohibited from owning generation under the 1999 restructuring act, Staff said in a wide-ranging report on the grid of the future.

However, Staff said that the restructuring act does prohibit Pepco from selling electricity produced by any generation source that it owns. However, use of generation to support Pepco's operation of the distribution system and the District's zoning requirements would be permissible.

"[I]t is Staff's opinion that the 1999 Act does not limit Pepco's ability to own generation; it only limits Pepco's ability to sell electricity produced by any generation source that it owns. As Pepco points out in its comments, it currently owns limited DER facilities, NEM solar facilities, to produce power to support the operation of its substations. These facilities support Pepco's operation of the distribution system and the District's zoning requirements," Staff said

"As to Pepco's relationship with a microgrid, in its comments, the Company also clearly states that it may only own the generation through its role as the SOS Administrator or through an affiliate," Staff said

"Therefore, there is no need for Commission action regarding Pepco's ownership of DER facilities so long as the electricity generated by such facilities is not sold but is instead used by Pepco to support the reliable operation of the distribution system," Staff said

Regarding dynamic pricing, while Staff's report gives an overview of various considerations and stakeholder positions, Staff said, "In light of the open proceedings related to time-varying rates, in particular, and distribution utility rates, in general, before the Commission, the Staff cannot discuss this topic further."

For similar reasons, Staff did not offer a recommendation on AMI data access, given ongoing proceedings before the PSC concerning AMI data access.

Staff recommends modifying the definition of electricity "supplier" to exclude, among other entities, "nontraditional marketers" and "any person or entity that owns a behind-the-meter generator and sells or supplies the electricity from that generator to a single retail customer or customers behind the same meter."

See Staff's report here

FC 1130