On August 1, 2014, Pepco formally filed its application to the DC Public Service Commission for Issuance of a Financing Order, stating it “will allow the District of Columbia to issue bonds in a total aggregate…of up to $375 Million” consistent with the limitation imposed by Section 202(a) of the Electric Company Infrastructure Improvement financing Act of 2014.
According to the filing, the proceeds to be raised by these bonds will pay the upfront financing costs of the bonds, and pay or reimburse DDOT Underground Electric Infrastructure Improvement Costs incurred by the District of Columbia Department of Transportation in undertaking or support of Power Line Undergrounding activities.
In August 2012, Mayor Gray convened the Power Line Undergrounding Task Force to study the feasibility of various electric infrastructure improvement options that would significantly improve electric service reliability.
In October 2013, the Task Force final report was submitted to the Mayor recommending a plan that would implement its findings through legislative and regulatory processes.
In July 2013, D.C. Bill 20-387 was introduced in the D.C. Council. The legislation was approved by the Council in February and signed into law by Mayor Gray on March 3, 2014. The law became effective on May 3, 2014.
Simply stated, this proceeding will allow the District to expend its portion of the $875 Million to be incurred for the total undergrounding project.
The parties and the Commission will review the bond funding proposed by the District and make a determination regarding whether it is consistent with the requirements of the law.. The total amount will be added to and recovered in the Undergrounding Surcharge(s) to be approved by the PSC.
Review the full order here: