Maryland’s PSC Approves PEPCO’s "Energy and Peak Demand Reduction" Plan

Maryland’s Public Service Commission (PSC), on Dec. 31, 2008, approved the plan set forth by Potomac Electric Power Company (PEPCO) which PEPCO submitted pursuant to the EmPower Maryland Energy Efficiency Act of 2008 (the Act). The PSC determined that the proposals’ design structure was consistent with the Act’s energy savings and cost-effectiveness orders.  The PSC did project the programs to fall "somewhat" short of the goals prescribed in the Act, but acknowledged that to keep the aggressive consumption and demand reduction goals moving along, the PSC needed to approve the plan.

PEPCO submitted its EmPower Maryland Energy and Peak Demand Reduction Plan to the Public Service Commission on September 2, 2008 pursuant to the Act. The Act, passed during Maryland’s 2008 Legislative Session and signed into law by Gov. Martin O’Malley, requires each electric company to file an electricity savings and demand reduction plan and cost recovery proposal with the PSC.  The PSC, according to the Act, had until Dec. 31, 2008 to make a determination regarding approval for the plan.

Specifically, the Act requires electric companies operating in Maryland to provide ratepayers with cost-effective energy efficiency and conservation programs which must be designed to achieve energy reductions of at least 5% by the end of 2011 and 10% by the end of 2015, as compared to 2007 energy consumption.  Additionally, the Act mandates electric companies to implement a demand response program designed to reduce per capita peak electricity demand by at least 5% by the end of 2011, 10% by the end of 2013, and 15% by the end of 2015 as compared to 2007 per capita peak electricity demand.

PEPCO’s plan to achieve the targeted goals includes, but is not limited to, energy efficiency and conservation programs, an efficient street lighting initiative with the Montgomery and Prince George’s County governments,  and a utility-provided program to encourage customer purchase and installation of photovoltaic systems.

AOBA members who own or manage apartment and office buildings in Maryland that are within the service area served by PEPCO have a substantial interest in PEPCO’s proposed Energy and Peak Demand Reduction Plan.  As such, AOBA filed a "Notice and Petition" to appear as an Intervenor in the Case.

Please note: AOBA is tracking energy and environmental initiatives in Maryland, Virginia and DC. For more info, visit AOBA’s website at:  http://aoba-metro.org/going-green.html.