Pepco Requests $193.2 Million Increase in Revenue in Multi-Year Rate Plan Application in Maryland

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 Energy Market Update

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 Utility Committee Winter Market Update

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 Committee Energy Market Update August 17th 11AM



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.

DC Annual Renewable Energy Portfolio Standards for 2021 Published

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 for 2021

Prince George’s County Building Energy Performance Standards (BEPS) Legislation Dies in Committee Due to Preemption Concerns Raised by AOBA

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.

DC Annual Renewable Energy Portfolio Standards Report Published

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

Maryland Passes Senate Bill 528

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