1802859 In the Matter of the Investigation into the Potomac Electric Power Company's Residential Air Conditioner Direct Load Program
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PUBLIC SERVICE COMMISSION OF THE DISTRICT OF COLUMBIA
NOTICE OF FINAL RULEMAKING
FORMAL CASE NO. 1086, IN THE MATTER OF THE INVESTIGATION INTO THE POTOMAC ELECTRIC POWER COMPANY’S Residential Air Conditioner Direct Load Control Program
1. The Public Service Commission of the District of Columbia (Commission) pursuant to its authority under D.C. Official Code § 34-802 (2010 Repl.) and in accordance with D.C. Official Code § 2-505 (2011 Repl.), hereby gives notice, of its final rulemaking action taken on November 3, 2011, in Order No. 16602, approving the Application of the Potomac Electric Power Company (Pepco or Company) for a Revised Residential Air Conditioner Direct Load Control Program (DLC Program)[1] and to put into service the following updated tariff pages:
POTOMAC ELECTRIC POWER COMPANY, P.S.C. of D.C. No. 1
62nd Revised Page No. R-1
62nd Revised Page No. R-2
55th Revised Page No. R-2.1
31st Revised Page No. 2.2
Original Page No. R-50
2. On June 15, 2011, Pepco filed a Revised Residential DLC Program with updated tariff pages, including a new Rider “R-DLC” – Residential Direct Load Control.[2] This filing revises the Company’s January 20, 2010, program proposal which was denied by the Commission in Order No. 16109, in which Pepco proposed a distribution bill surcharge to recover DLC Program costs.[3] In this revised DLC Program Tariff Application, among other things, Pepco proposes to recover DLC Program costs through the establishment of a regulatory asset rather than a distribution bill surcharge.[4]
3. Specifically, Pepco proposes to establish a revised voluntary residential air conditioner DLC Program.[5] Pepco states that it will encourage customer participation through a one (1)-time program enrollment credit and annual customer billing credits.[6] To achieve maximum DLC Program participation “Pepco proposes to offer all District of Columbia residential distribution customers with central air conditioners or central heat pumps the choice of the installation of an outdoor cycling switch or an indoor smart programmable thermostat (‘DLC equipment’)”.[7] Pepco states that it “anticipates that the deployed AMI System will provide the communication link to the deployed [DLC] equipment by using the communication capabilities of the new meters after this functionality is enabled.”[8] According to the Company, “[t]he installation of this equipment will permit the Company to reduce high summer electric demand through the cycling of residential central electric air conditioner and heat pump compressors.”[9] Finally, the Company “proposes to recover program costs through a newly established regulatory asset.”[10]
4. A Notice of Proposed Rulemaking (NOPR) was published in the D.C. Register on June 24, 2011, requesting public comment on Pepco’s Application.[11] In response to the NOPR, the Office of the People’s Counsel (OPC) and Pepco filed comments and reply comments, respectively.[12] The Commission, in Order No. 16602, approved Pepco’s Tariff Application, effective upon publication of this Notice of Final Rulemaking in the D.C. Register.
[1] F.C. 1086, Pepco’s filing was initially docketed in Formal Case No. 1070, In the Matter of the Investigation into the Potomac Electric Power Company’s Non-AMI Demand Response Program Plan (“F.C. 1070”), Response of the Potomac Electric Power Company to Order No. 16109, Issued on December 20, 2010 in Formal Case No. 1070, filed June 15, 2011. The filing was subsequently transferred to Formal Case No. 1086, In the Matter of the Investigation into the Potomac Electric Power Company’s Residential Air Conditioner Direct Load Control Program (“F.C. 1086”), in this document, Pepco’s filing will be referred to as “Pepco’s Tariff Application”.
[2] F.C. 1086, Pepco’s Tariff Application at 1.
[3] Id. at 1.
[4] Id. See F.C. 1070, Order No. 16109, rel. December 20, 2010.
[5] Id. at 1.
[6] Id. at 8.
[7] Id. at 4.
[8] Id. at 3. (Pepco “anticipates that its AMI meter deployment will be substantially completed by year-end 2011.”).
[9] Id. at 4.
[10] Id. at 16.
[11] 58 DCR 5341 (June 24, 2011).
[12] F.C 1086, The Comments of the Office of the People’s Counsel in Response to the Pepco’s Direct Load Control Proposal, filed July 25, 2011 (“OPC’s Comments”); Reply Comments of Potomac Electric Power Company Response to the Notice of Proposed Rulemaking, filed August 8, 2011 (“Pepco’s Reply Comments”).
