Electric Utility History is Coming to the District of Columbia
Posted: September 4, 2000
Beginning January 1, 2001, District of Columbia electric users will have the choice of selecting their electric supplier. Pursuant to DC Public Service Commission's (PSC) Formal Case No. 945, in the matter of the investigation into electric service market competition and regulatory practices. DC Energy Office has argued for universal service lower rates for all District of Columbia consumers. The PSC has established working groups to address the various components necessary for deregulation of the electric industry. The working groups include, for example, aggregation, universal service, licensing, and consumer protection.
The DC Energy Office was designated by law as the administrator of the Universal Fund, and has designed programs for the Reliable Energy Trust Fund (RETF). The program plans have been submitted to the PSC, and the DC Energy Office plans to administrator the entire RETF.
The Energy Office has been developing these programs over the past several months in order to address three components of the RETF: 1)Universal Service; second, 2)energy efficiency programs; and 3)renewables.
One of the programs of the Universal Service Fund is the Residential Aid Discount Program to low-income electric customers. This program currently offers all qualifying electric customers approximately a $6.00 monthly discount for 12 months. DCEO proposes to increase this discount for all electric customers and those who use electric water heaters. The discount for these programs would increase to $20 per month, year round for all-electric users, and to $12 a month for non-all-electric users during the summer months.
The DC Energy Office also proposes to expand its weatherization program to install conservation measures in 300 low-income homes and 150 more that are slightly above the current federal income guidelines.
Another program that the Energy Office proposes is proposing is a small business conservation grant program. Based upon an audit, the DC Energy Office will provide $300,000 to community based organizations to install $6,000 in energy efficient measures per business in up to 50 businesses.
A media campaign will begin in the next month and continue into 2001. The plan is to educate all DC electric consumers on the opportunities they will have under electric restructuring.
In addition, the Public Service Commission of District of Columbia approved a settlement that will allow PEPCO, the local electric utility, to sell its facilities used for the generation of electric power, in exchange for significant benefits to District of Columbia consumers, including lower electricity rates. Since PEPCO will buy electric power in the competitive market rather than generate electricity itself, there is an opportunity for additional savings to ratepayers. If the savings resulting from the purchase of power on the open market exceed agreed upon levels, those savings will be shared with ratepayers through a credit on utility bills.
Under terms of the settlement agreement, residential customers in the District of Columbia will receive guaranteed rate reductions totaling 7 percent. On January 1, 2000, residential customers received a 2 percent reduction; on July 1, 2000, they received an additional 1.5 percent and on August 1, 2000, PEPCO residential ratepayers received another 3.5 percent rate reduction.
For more information on restructuring in the District of Columbia, please contact Ralph McMillan of the DC Energy Office at RMcMilla@dpw.dcgov.org.
