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

April 26th 11AM

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.

Energy Market Update

Alliance Rate Cases Updates

AOBA Alliance trusted partner, Constellation, provided some insight on the Inflation Reduction Act and its impact for businesses.

https://blogs.constellation.com/energy-policy/the-inflation-reduction-act-what-does-it-mean-for-my-business/

October 27th

10AM-11AM

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.

Contact Kevin Carey @ [email protected] for more information

Attached is the Annual DC REPS report for CY 2021

Some hi-lights

• 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 

Annual Report

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.

Senate Bill 528 Overview