Current Status
Even though the DCPSC approved Pepco’s rate plan in FC1156 in June 2021, proceedings regarding specific cost recoveries are ongoing.
On August 1, 2024, the D.C. Court of Appeals vacated the Commission's previous orders regarding the recovery of remedial investigation and feasibility study costs at Pepco’s Benning Road Generation Station, remanding the case back to the DCPSC for further analysis. The Commission must now provide a more detailed explanation of how it allocates these environmental costs between generation and distribution/transmission activities.
Get additional detailed updates by following FC1156 and DCC2023-01-E.
Overview
The DCPSC approved a Modified Enhanced Multiyear Rate Plan (Modified EMRP) from Pepco on June 8, 2021, that gradually increased rates for electrical distribution service in the District of Columbia. The Modified EMRP was executed as a pilot MRP program through the end of calendar year 2022, equating to an 18-month initial MRP term.
The Modified EMRP included, among other things:
- A revenue requirement of $108.6 million over three years resulting in a monthly bill impact for the average residential customer (excluding customers in the electric Residential Aid Discount Program) of $1.07, $2.33, and $1.85 in those three years, respectively, or a total of $5.25
- A total package of $11.4 million of shareholder-funded customer benefits, including $7.8 million for residential and streetlight bill offsets, and $3.6 million of Customer Base Rate Credits for residential customers
- Initiation of a $5 million small commercial customer energy efficiency program, encompassing rebates and loans
- Tracking Performance Improvement Mechanisms (PIMs) focused on the District’s clean energy goals, as well as a reliability tracking PIM
- A stay-out provision which prohibited Pepco from filing a new rate application until at least January 2, 2023, with rates to be effective no earlier than January 1, 2024
Background
Pepco's original multiyear rate case application on May 30, 2019, requested to increase electric distribution rates in the District by $147 million. A “typical” customer using 692 kWh per month through the Standard Offer Service (SOS) would have rate increases of approximately $8.21 in 2020, $3.84 in 2021 and $3.41 in 2022.
Per DC Code, the DCPSC can only have approved Pepco’s MRP as an alternative form of regulation if the Commission found that the MRP “protects consumers; ensures the quality, availability, and reliability of Pepco’s electric services; and is in the interest of the public, including shareholders of the electric company.”
The DCPSC held virtual community hearings in this case on Sept. 29, 2020, and on Oct. 26-27, 2020 (part 1 and part 2).
Additional Information