Briefing for house economic matters committee january 16 2014
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Public Service Commission Update on Utility Issues: Reliability and Infrastructure Upgrades, Advanced Metering Issues, and Related Matters. Briefing for House Economic Matters Committee January 16, 2014. 1. 1. Topics. Reliability: Utility Performance and Commission Activity

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Briefing for House Economic Matters Committee January 16, 2014

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Briefing for house economic matters committee january 16 2014

Public Service Commission Update on Utility Issues: Reliability and Infrastructure Upgrades, Advanced Metering Issues, and Related Matters

Briefing for House Economic Matters Committee

January 16, 2014

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Topics

Topics

  • Reliability: Utility Performance and Commission Activity

  • Recovery for Infrastructure Upgrades

  • Smart Meters: Pepco, BGE, DPL, and SMECO Performance

  • EmPOWER Maryland

  • Renewable Portfolio Standard

  • 2014 Major Commission Activities

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Enhanced oversight of electric reliability

Enhanced Oversight of Electric Reliability

2013 was the first year that RM 43 annual performance reports were filed and reviewed

Commission ordered appropriate corrective action and future reporting adjustments on September 3

RM 43 Performance Metrics

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Enhanced oversight of electric reliability1

Enhanced Oversight of Electric Reliability

  • Commission will receive by May 1 several filings from Staff concerning ways to continue enhancing the Commission’s oversight of electric service reliability, including:

    • Draft regulations revising RM 43 standards, including Major Outage Event Data, Objective Standards for Estimated Times of Restoration, and to strengthen the Poorest Performing Feeder standard

    • Evaluation of performance-based ratemaking

  • Commission has forwarded to the General Assembly the Staff Report of the Derecho Vulnerable Individuals Work Group and Response to HB 1159

    • Commission is evaluating recommendations

  • Reliabilty4HOCO: September 9 Order directs BGE to report on the results of its Reliability Enhancement Work Plan and survey customers on their satisfaction with the Work Plan’s results

    • Staff will file an investigative report on January 31, 2014 concerning additional feeders identified in Howard County’s Petition and other reliability measures

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Electric company recovery for infrastructure upgrades

Electric Company Recovery for Infrastructure Upgrades

Pepco Rate Case: Decision issued July 12

Commission granted partial increase of $27.9M, primarily for reliability investments

Commission also granted cost recovery through a tracker for $24M two-year capital program to accelerate the hardening of 24 feeders that are prone to outages during major storm events

DPL Rate Case: Decision accepting settlement filed with PULJ issued August 30

Settlement authorized partial increase of $14.98M, primarily for reliability investments

Also authorized cost recovery through a tracker for $4.2M two-year capital program to accelerate priority feeder improvements

BGE Rate Case: Decision issued December 13

Commission granted partial increases in gas ($12.5M) and electric ($33.6M) distribution rates, primarily for safety and reliability investments

Commission also granted cost recovery through a tracker of $72.6M for 5 of 8 BGE proposals to accelerate reliability improvements over 5 years

Programs will improve grid reliability in normal and severe weather

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Gas company rate cases and recovery for infrastructure upgrades

Gas Company Rate Cases and Recovery for Infrastructure Upgrades

  • WGL Rate Case: PULJ Order issued on October 10, appealed to Commission by WGL, OPC, and AOBA

    • Decision issued November 22

    • $8.9M increase granted primarily for safety and reliability investments

  • Columbia Gas Rate Case: Decision on appeal of rate case from PULJ issued on September 24

    • $3.6M increase granted primarily for safety and reliability investments

  • STRIDE Filings:

    • BGE decision due February 1, 2014

    • Columbia decision due February 3, 2014

    • WGL filed on November 7; decision due May 6, 2014


Smart meters deployments and deferrals

Smart Meters: Deployments and Deferrals

BGE has installed 867,000 meters

44% deployed

Major deployment activities planned to be complete by end of 2014

3.6% (30,000) have deferred installation

Due to difficulties reaching indoor or otherwise inaccessible meters, BGE on September 16 asked permission to designate non-responsive customers as “opt-out” customers, or, in the alternative, terminate their service

On October 17, the Commission rejected both alternatives and ordered BGE to increase its efforts and report back in 6 months

Pepco has installed 552,473 meters

99% deployed

0.39% (2,201) have deferred installation

DPL has installed 175,963 meters

83% deployed

Deployment planned to be complete by early 2014

0.96% (2,030) have deferred installation

SMECO’s 150,000 meter plan for all customers was approved in June

Will begin installations in third quarter of 2014; consumer education to begin this spring

Smart Meter Opt-out Cost – a decision expected late January/early February

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Empower maryland continued improvement but more needed

EmPOWER Maryland:Continued Improvement, But More Needed

Utility Program Achievement of the 2015 Energy Reduction Goal

Energy Reduction

Percentage of 2015

Program-to-Date,

2015 Goal (MWh)

Goal

September 17, 2013

BGE

1,583,194

3,593,750

44%

Pepco

627,485

1,239,108

51%

PE

271,646

415,228

65%

DPL

115,505

143,453

81%

SMECO

131,560

83,870

157%

Utility Program Achievement of the 2015 Peak Reduction Goal

Demand Reduction

Percentage of 2015

Program-to-Date,

2015 Goal (MW)

Goal

September 17, 2013

BGE

717

1,267

57%

Pepco

229

672

34%

PE

39

21

186%

DPL

46

18

257%

SMECO

66

139

48%

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Empower maryland new programs and post 2015 planning studies

EmPOWER Maryland: New Programs and post-2015 Planning Studies

$94,928,882 approved for next round of utility EmPOWER programs

includes $45.4 million for commercial and industrial programs and $35.3 million for residential programs

Commission earlier approved an additional $14.2 million for BGE Energy Solutions for Business Custom Program

RFPs for Baseline and Potential studies for post-2015 EmPOWER Planning

Baseline study will analyze the quantity and type of devices by sector and building type that Maryland uses to consume electricity and natural gas

Potential study will seek to further understand the level of future savings that may be attained

MEA is also leveraging previous work performed by the Power Plant Research Project to develop an avoided cost study

The study’s price forecasts and price suppression impacts will be used in the potential study

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Renewable portfolio standard compliance

Renewable Portfolio Standard Compliance

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2014 major commission activities

2014 Major Commission Activities

  • EmPOWER Planning: 2015-2017

  • Offshore Wind: Consultant to assist in the development of regulations and project application approved by BPW on December 18, 2013

  • Pepco rate case decision due July 3, 2014

  • STRIDE Cases

  • Long-Term Reliability Hearings

  • 2013 Electric Co. Reliability: Utility Performance Review

  • Transportation

    • Uber: PULJ handling case to determine if Uber is a common carrier subject to Commission regulation; Proposed Order may be issued by March 2014

    • UberX & Lyft: Office of People’s Counsel motions to cease and desist relating to Lyft and UberX, both ridesharing services   


For more information

For more information…

Public Service Commission

6 St. Paul Street, 16th Floor

Baltimore, MD 21202

410-767-8000

www.psc.state.md.us

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