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Home > Industry Data > District of Columbia Detail Page

District of Columbia Detail Page

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Regulatory Summary

07/06: The Public Service Commission issued Order No. 14006 on July 21, 2006. In particular, the Commission established a two-phased approach addressing improvements to SOS procurement process for the next solicitation and initiating a proceeding to review the SOS process and consider the benefits of a portfolio management approach.

03/06: PEPCO proposed new SOS rates. Based on a March 10th filing, beginning with the June 2006 bills, PEPCO anticipated that residential customers would see an annual average increase of 12 percent in their bills (about $8 per month). Small commercial customers' bills would increase, on average, by about 10 percent. The Commission approved PEPCO's new SOS rates on March 22, 2006. The new SOS rates became effective June 1, 2006.

9/05: With the new price cap applied in February 2005, prices for large commercial customers went up on average 32% and for small commercial an average of 24%. Almost half of all large commercial customers (and almost 80% of their load) were served by alternative suppliers as of April 2005.

1/05: PEPCO's obligation to serve as the D.C. area standard offer service (SOS) provider has been extended and rates have been capped until 2007. Residential customers will see an average 17.7% increase and small commercial customers will see an average 24% increase. PEPCO's residential SOS customers can switch to an alternative supplier on or after Feb 2005 when the current rate cap expires.

4/04: PEPCO's obligation to serve as the D.C. area standard offer service (SOS) provider will expire in December 2004. On March 1, 2004, the Commission issued Order No. 13118, which adopts the wholesale Standard Offer Service model for the implementation of SOS in D.C.

10/01: The PSC issued Order No. 12159 and Order No. 12203, which mandated PEPCO distribute the net proceeds (in excess of the asset's book value) of the sale of its assets to its customers. Order 12159 allowed the customers to receive $50.1 million, but Order 12203 stated that PEPCO should revise the rate schedule and add 9.09 percent interest and begin distribution "on October 22, 2001 or the first billing cycle after October 22, 2001." According to the PSC website, residential customers received $75.39 per household and commercial customers received 0.393 cents per kWh for the annual usage ending March 31, 2001. The total credits distributed to customers amounted to $51.85 million.

1/01: The District of Columbia began allowing customers direct access to competitive electricity suppliers on January 1, 2001. The PSC established interim shopping credits ranging from 3.68 to 5.18 cents/kWh. Pepco, the only utility in DC, recently sold its power plants; the shopping credits will be adjusted based on the sale of the power plants. The PSC is reviewing marketer licensing applications and consumer protection measures.

12/00: Order 11845 unbundled retail rates into separate categories, generation, transmission, and distribution functions. Unbundling allowed customers to compare prices among electricity suppliers, and helped the Commission to determine "shopping credits" or "price to compare."

9/00: The District of Columbia Public Service Commission issued Order No. 11796 on September 18, 2000 providing the implementation plan for retail choice. Effective January 1, 2001, all residential and commercial electricity customers in the District of Columbia will be able to choose an electricity supplier. PEPCO will continue to provide delivery services. Order 11796 also includes the licensing requirements for alternative electricity suppliers.

12/99: The PSC issued Order No. 11576 on December 31, 1999 that addressed various issues regarding restructuring of the electric power industry in the District of Columbia and the implementation or retail access. The settlement with PEPCO dealt with asset diverstiture and treatment of its proceeds; rate freezes and rate decreases; transmission and distribution system investment; power supply procurement; market power and retail competition.

2/99: PEPCO has filed a plan with the PUC to allow retail competition in its service territory in the District of Columbia and suburban Maryland. The plan would allow retail choice in DC by 1/01, included an estimate of stranded costs and a method for recovery, proposed unbundled rates, and a rate freeze through 1/05. PEPCO plans to sell its DC power plants to recoup stranded costs.

12/98: The PSC requested PEPCO to file a restructuring plan with stranded costs and unbundled rates studies.

9/97: The PSC continues to study restructuring and issued a notice of inquiry for issues to investigate on retail competition. A report is expected in 1998.

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