About the types of proposed Merger benefits

These benefits were designed to financially assist customers. 

Customer Investment Fund

Arrearage Management Program

Root Cause Analysis

Charitable Contributions and Community Support

OPC’s advocacy:  From the outset, OPC’s position was that the Consumer Investment Fund (“CIF”) was insufficient resulting in an imbalance of benefits between the Pepco and Exelon and consumers, with consumers fairing far worse as all they would receive is a one-time credit of $50. Just prior to the evidentiary hearing, Pepco and Exelon increased the CIF to $33 million providing each customer with a one-time credit of $128. The Office maintained its position that the CIF was still too low. The Commission agreed and used this as a part of its basis to reject the merger.  

After the merger was rejected, Pepco and Exelon agreed to OPC’s settlement term of including a $25.6 million rate case credit. Ultimately, the settlement was rejected, but in the order approving the merger, the Commission included the rate case credit along with a debt-forgiveness program worth $438,000 and required Exelon to deposit $33.75 million to the Commission to fund the DC Public Service Commission’s grid modernization FC No. 1130 proceeding (Formal Case No. 1130) and an Energy Efficiency Fund. Therefore, the total CIF was $72.8 million, an increase of $59 million.

The CIF includes:

$25.6 million rate case credit (stable rates from 2014-2019)

$21.50 to fund MEDSIS

$11.25 to fund Commission energy efficiency programs

$14 million a one-time credit worth $54.59 to all residential consumers

$438,000 to fund a debt-forgiveness program

 TOTAL: $72.8 million

 Therefore, OPC’s advocacy resulted in consumers receiving a much more beneficial CIF than originally proposed.

 

These benefits were designed to improve the District’s economy.

Employment in the District of Columbia

Annual Employment Report

Workforce Development Program

Economic Benefits Reporting

OPC’s advocacy: OPC advocated for greater transparency in the reporting of jobs created and guarantees about employment post-merger at Pepco. The end result were two reports, an annual employment report and an economic benefit report to detail the impact of the merger on the District’s economy. Pepco was also required to establish a workforce development program.

These benefits were designed to improve the District’s energy delivery system.

Service Reliability and Quality

Support of Formal Case No. 1130

OPC’s advocacy: OPC has been advocating for increased reliability standards long before the merger was filed. As a result of OPC’s work, the Commission developed more stringent Electric Quality of Service Standards. In the merger, OPC’s position was that Pepco’s and Exelon’s proposal for less stringent reliability standards was insufficient.  Pepco and Exelon wanted to be judged on reliability performance on an average of three years’ worth of data instead of being evaluated on an annual basis. The Commission rejected the Pepco’s and Exelon’s position and required an annual review of reliability performance.

These benefits were designed to improve the District’s environment.

Advocacy for Energy Efficiency and Demand Response

Development of Solar/Renewable Generation 7 MW of solar generation in the District of Columbia

Procurement of 100 Megawatts of Wind Energy Under Long-Term Contracts

Enhancement to the Interconnection Process and Support for Customer-Owned Behind-the-Meter Distributed Generation

Exelon shall provide $5 million of capital to creditworthy governmental entities at market rates for the development of renewable energy projects in the District of Columbia.

OPC’s advocacy:  Pepco’s and Exelon’s initial merger proposal did not include any benefits for the environment. None. OPC made this point in its testimony and brief. In the order denying the merger, The Commission agreed with OPC. In the settlement phase, the Pepco and Exelon included a number of proposals including adopting all of OPC’s proposals made in DC Public Service Commission Formal Case No. 1050 prior to the merger to improve the solar interconnection process.  In the order approving the merger, the Commission required the JA to do the following: Develop 7 MW of solar generation in the District of Columbia, purchase 100 Megawatts of Wind Energy Under Long-Term Contracts and provide $5 million of capital to creditworthy governmental entities at market rates for the development of renewable energy projects in the District of Columbia.  

OPC’s advocacy highlighted the deficiencies of Pepco’s and Exelon’s proposal and the need for a comprehensive set of terms to satisfy the environmental factor of the merger requirement.  The end result was a win for consumers and the city in the short and long term.