August 1, 2023
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
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.
AOBA Alliance trusted partner, Constellation, provided some insight on the Inflation Reduction Act and its impact for businesses.
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
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. |
Attached is the Annual DC REPS report for CY 2021
Some hi-lights
| At its June 23 hearing, the Transportation, Infrastructure, Energy and Environment Committee of the Prince George’s County Council voted to hold CB-26-22 indefinitely. The Committee’s action effectively kills the legislation, which would have established BEPS for the following building types: * Multifamily residential or mixed-use covered buildings equal to or exceeding 250,000 square feet * Non-residential buildings equal or greater than 50,000 square feet, but less than 250,000 square feet * Non-residential buildings that equals or exceeds 10,000 square feet, but less than 50,000 square feet. * Multifamily residential or mixed-use covered buildings equal to or exceeding 250,000 square feet * Multifamily residential or mixed-use covered buildings equal to or exceeding 10,000 square feet, but less than 250,000 square feet Montgomery County Interpretation The decision was based on a legal interpretation by the Montgomery County Office of the County Attorney (OCA) that the legislation is preempted by the Climate Solutions Now Act of 2022 (S.B. 528), a statewide climate bill that establishes similar requirements. AOBA submitted a statement for the hearing raising the preemption issue. The statement read in part: “Finally, there is an open question of law related to the viability of both the proposed Prince George’s legislation, as well as the recently passed Montgomery County Bill, specifically, whether the local legislation is pre-empted by Maryland Senate Bill 528, The Climate Solutions Now Act of 2022. The Office of the County Attorney (OCA) in Montgomery County has offered an interpretation of the pre-emption of state legislation. However, the County Attorney leaves open the potential of the local legislation being challenged in the courts. AOBA has concluded that the pre-emption issue will likely be resolved in court. It is imperative that AOBA ensure that members are not ensnared in a conflicting battle between a state and county law when the State law pre-empts the local legislation.” AOBA’s Impact In a big win for AOBA members, the Prince George’s County Office of Law investigated the matter and made the appropriate finding. The decision means Prince George’s County members will not have to comply with two sets of energy efficiency standards, saving housing providers staff resources, time, and money. |
