|Commission Rejects Pepco Microgrid Proposal|
The Commission rejected Pepco's proposal to deploy two public purpose microgrids. Pepco's filing stemmed from a condition of the Exelon-Pepco merger. The Commission rejected Pepco's filing because of the proposal to recover all $63 million in projected microgrid costs from its Maryland distribution customers without contribution by the Company, the developer, microgrid participants or the benefitting counties where the projects would be located. The Commission also noted the lack of metrics for a pilot study and definitive sunset date.
Pepco proposed to own the battery energy storage systems and microgrid controller components of the microgrids and also reserved the option of owning the distributed generation assets. NEM's comments argued this was contrary to state restructuring law. On this issue the Commission said, "[a]t present, we have yet to establish a state-wide regulatory framework under the PUA to govern the ownership and regulation of battery energy storage and other microgrid DER assets, including generation facilities. Whereas we deny the Proposal for cost recovery and other reasons, we do not take up the legal issue concerning Pepco's ownership of battery storage and, potentially, the DG components at this time."
Pepco's proposal was denied without prejudice, and it may file another pilot microgrid project proposal.
The full text of the Order is available on the NEM website.