Alliance participants were updated on the current legislative and regulatory landscape in the energy sector by Frann Francis, Chief Counsel for AOBA and Kevin Carey, Vice President of Operations for AOBA Alliance.
Additionally, Constellation provided a comprehensive overview of the current energy market and its impact on operations for AOBA members and Alliance participants.
Washington Gas has filed with a rate increase proposal of $49.4 million revenue increase to be effective December 14, 2023. Included in the $49.4 million revenue increase is a $21.0 million request to transfer the Washington Gas Strategic Infrastructure Development And Enhancement Plan or “STRIDE” surcharges into base rates subject to Commission approval.
Washington Gas’ claimed justification for the new rate increase mimics prior requests to increase rates charged to Maryland customers. According to its Application, Washington Gas has not been able to earn the 7.09 percent overall rate of return (“ROR)” based on the 9.70 % return on equity (“ROE”) authorized by the Commission in the Company’s last rate case (i.e., Case No. 9651). “Current rates,” Washington Gas explains, “are not just and reasonable and are inadequate due to the growth in the Company’s net rate base and increases in operation and maintenance costs.”
Pepco filed an Application for its largest distribution revenue increase ever requested in Maryland on May 16, 2023. Pepco has requested a cumulative $193.2 million increase in its base distribution revenue over the next three years (i.e., 2024-2026) to be effective April 1, 2024. Specifically, Pepco is proposing that rates increase by $74.4 million on April 1, 2024, by $59.4 million on April 1, 2025 and then again by an additional $59.4 million on April 1, 2026 through March 31, 2027. Pepco has also included in its Application a proposal that would extend the three year Multi-Year Plan request (“MYP”) through December 31, 2027.
In Maryland, the increased rates requested are as follows: Year 1 Increase (2024) : $ 74.4 million Year 2 Increase (2025) : $ 59.4 million Year 3 Increase (2026) : $ 59.4 million
AOBA will provide new information on Pepco’s $190M rate increase request filed last week in the District which will substantially increase Pepco’s distribution costs for AOBA’s commercial and master-metered apartment members. Pepco’s projections range from 18% to 20%. However, AOBA’s initial review indicates Pepco may be greatly underestimating the effect on AOBA members.
AOBA will also provide status updates to ongoing Washington Gas rate cases in Virginia and the District. We will also discuss potential rate increase requests by both Pepco and Washington Gas in Maryland.
William Sticka, Director of Technical Sales/Market Strategy for Constellation, will present a comprehensive energy market update post-Winter and provide an update on what is driving energy markets currently and discuss some potential strategies to mitigate risk.
Frann Francis, Senior Vice President and General Counsel for AOBA, and Kevin Carey, Vice President of AOBA Alliance, will update the latest rate case information. Contact Kevin Carey for more information [email protected]
AOBA Alliance and Constellation presented an energy market for participants and AOBA members on February 7th. The impact of changes to DC Solar Energy requirements were covered as well as ongoing rates cases in DC, Maryland and Virginia that impact Alliance participants.
AOBA and Constellation Energy will present a Winter forecast of energy markets and how that will impact utility rates for AOBA members and AOBA Alliance participants.
William Sticka, Director of Technical Sales/Market Strategy for Constellation, will present a comprehensive update and view on the wholesale natural gas and electric markets and the impact on energy supply contracting for our members.
Frann Francis, Senior Vice President and General Counsel for AOBA, and Kevin Carey, Vice President of AOBA Alliance, will update the regulatory landscape for energy legislation and other matters in the District and Maryland.
Utility Rate Increases Washington Gas Light Company Rate Requests in DC and Virginia – Rate Impacts. Potomac Electric Power Company Rate Increases in DC and MD – Rate Impacts Dominion – Increase in VA Fuel Rate Water Rates in DC, Maryland and Virginia – Update
Energy Market Update AOBA and Constellation will present a State of the Energy Market that will help members plan their budget increases for the coming year.
William Sticka, Director, Technical Sales/Market Strategy for Constellation, will present a comprehensive update and view on the wholesale natural gas and electric markets and the impact on energy supply contracting for our members.
Bruce R. Oliver, President of Revilo Hill Associates, Inc. and Chief Economist for AOBA, will present a view of long-term energy market expectations and the Pepco Standard Offer Service process. Bruce will offer guidance on planning for future long-term energy contracting decisions for members.
Frann Francis, Senior Vice President and General Counsel for AOBA, and Kevin Carey, Vice President Operations of AOBA Alliance, will update the regulatory landscape and discuss rate cases currently being contested and what members can expect for rate impacts from Pepco, Washington Gas, Dominion and DC Water in the 2022-2023 time horizon.
Added 2,337 new solar energy systems including 82 community renewable energy facilities (“CREFs”)
CREFs now have 26.5 MWs of capacity installed in the District
In total, DC added 37 MWs of Solar capacity for a year end total of 191.8 MWs of Solar
Wards 5,7 and 8 are the highest solar producing Wards
The total cost of compliance was $99.1 million for all suppliers (who in turn collect from members and residents in the commodity portion of the bill)
The average price for one DC Solar Renewable Energy Credit was $430 in 2021- the highest in the nation which helps explain why RPS charges on your energy supply charges now comprise ~10% of the total cost
The Maryland General Assembly approved an amended SB 528, the Climate Solutions Now Act of 2022, during the 2022 General Assembly.
Maryland Governor Hogan, who opposed SB 528, with amendments, allowed the legislation passed by the General Assembly to become law without his signature on April 8, 2022. The Climate Solutions Now Act of 2022 takes effect June 1, 2022.