DCPSC approves 15-year renewable energy power purchase agreement for a portion of the District’s default electric service

DCPSC is the first utility regulator in the Mid-Atlantic to mandate a long-term renewable energy PPA for default service program.

Washington, DC, Aug. 03, 2022 (GLOBE NEWSWIRE) -- The Public Service Commission of the District of Columbia (Commission) has approved the first long-term power purchase agreement (PPA) for renewable energy to serve a target quantity of 5% of the Standard Offer Service (SOS) electricity supply load beginning in December 2024 (Formal Case No. 1017). This agreement results from the Commission’s directive to implement a pilot program to procure renewable energy through long-term power purchase agreements for electricity generated by new solar or wind power facilities located within the PJM Interconnection (PJM) region. The agreement, with Invenergy which covers the sale of energy, renewable energy credits, and capacity, is for a term of 15 years with levelized pricing and for approximately 154,000 MWh per year, which equates to 73 MW, or about 29% of the solar project’s total capacity.

“Approving a 15-year agreement for renewable energy for SOS customers is a significant milestone for the Commission,” stated Emile C. Thompson, Commission Chairman. “Today’s action marks another aggressive step the Commission is taking to move the District closer to meeting its 2032 100% renewable energy goal, as well as the climate change commitments. By incorporating the long-term renewable energy PPA into the SOS procurement portfolio, we are taking direct action to reduce greenhouse gas emissions by promoting the construction of new renewable energy generation within the PJM Interconnection grid region. This pilot program is the product of a collaborative, comprehensive, and transparent SOS Working Group process. I want to thank all stakeholders, including the Office of the People’s Counsel, for their input and participation,” Thompson added. “We intend to re-engage the SOS Working Group as we endeavor to continue furthering the District’s energy and climate goals by exploring the expansion of the percentage of SOS load served by renewable energy PPAs in the near term.”

The SOS program allows District electric customers to buy default electric power generation services through Pepco rather than from about 45 other competitive, unregulated electricity suppliers. About 31% of Pepco’s total electricity supply sales were provided through the SOS program in 2021. About 86% of residential customers buy Pepco-supplied default SOS power, constituting about 78% of total residential electric utility sales in the District. The agreement is, to date, Pepco’s largest purchase of solar energy for its D.C. customers.

As the current SOS Administrator, Pepco procures 100% of the SOS load as a Wholesale Full Requirements Service (WFRS). With WFRS, electricity suppliers provide not only the energy but also other components such as capacity, losses, congestion, load shaping, credit and risk, ancillary services, and the cost of compliance with the District’s Renewable Energy Portfolio Standards..

For more information about the Commission’s clean energy efforts, visit dcpsc.org/cleanenergy.