Pepco Holdings, Inc. Blueprint for the Future and the Mid-Atlantic Regulatory. Steve Sunderhauf PHI Regulatory Group June 11, 2009

Transcription

1 Pepco Holdings, Inc. Blueprint for the Future and the Mid-Atlantic Regulatory Landscape Steve Sunderhauf PHI Regulatory Group June 11, 2009

2 Who We Are Pepco Holdings, Inc. ( PHI ) is a public utility holding company engaged in regulated utility operations and sale of competitive energy products and services to residential and commercial customers. PHI s utilities include: Pepco is a regulated electric utility delivering electricity to more than 750,000 customers in Washington, D.C., and its Maryland suburbs. Delmarva Power is a regulated utility with more than 500,000 electric delivery customers in Delaware and the Delmarva Peninsula and about 120,000 natural gas delivery customers in northern Delaware. Atlantic City Electric is a regulated electric utility serving nearly 540,000 customers in southern New Jersey. 2

3 Where We Are PHI Service Territory 3

4 Major Mid-Atlantic Energy Challenges Rising Cost of Energy Affordability in an Economic Recession Energy Reliability Absence of New Generation Construction Major Planned Transmission Additions New Small Scale Generators/Potential New Significant End- Uses Environmental Impact Greenhouse Gas Trading (Regional Greenhouse Gas Initiative) Increasing Renewable Portfolio Standards Requirements Available Smart Grid Technology 4

5 Public Policy Environment Mid-Atlantic State Energy and Demand Reduction Goals: Maryland s EmPOWER Plan (15% Reduction by 2015) New Jersey s Energy Master Plan (20% Reduction by 2020) Delaware Integrated Resource Planning District of Columbia City Council Initiatives Federal Stimulus Funds FERC Smart Grid Supporting Orders 5

6 PHI Strategies PHI Blueprint for the Future Filed in all Jurisdictions in 2007 Includes Energy Efficiency, Conservation, Demand Response, and Renewable Generation Proposed Programs Proposes Utility Distribution Rate Decoupling Removes Utility Disincentive for Investing in Energy Efficiency, Conservation, Demand Response, and Renewable Generation Helps to Align Utility Shareholder Fiduciary Obligations with Customers, Regulators, and Policymakers 6

7 Strategies (continued) Includes Smart Grid Initiatives: Advanced Metering Infrastructure Help Reduce Energy Costs and Volatility Improve Reliability and Customer Service AMI enables the increased use of renewables by making it easier to integrate them into the grid With AMI enabled dynamic pricing customers with renewables can lower energy costs by monitoring prices and choosing to use more renewable resources during peak pricing PHI has Joined the Clinton Global Initiative and Pledged a Commitment to Reduce Carbon Emissions Progress in each PHI jurisdiction 7

8 PHI Blueprint Status Delaware AMI Deployment Authorized through Regulatory Asset AMI Deployment Field Test Initiated Deployment for all DPL Electric and Gas Accounts New Smart Thermostat AC Direct Load Control Program to be Introduced Internet Portal to the PJM Demand Response Market Rate Decoupling in Concept District of Columbia Smart Meter Pilot Program Established Five Utility Provided Energy Efficiency and Conservation Programs Approved New Direct Load Control Program Pending Approval Internet Portal to the PJM Demand Response Market Pending Approval Rate Decoupling in Concept Legislative Mandate Supporting AMI Deployment 8

9 PHI Blueprint Status Maryland Residential Direct Load Control Program Approved Eight Utility Provided EE&C Programs Approved, Pending Implementation Approval DLC and EE&C Demand Reductions bid into PJM Capacity Markets AMI Deployment Hearing Held on June 10 New Jersey Residential Direct Load Control Program Pending Approval Solar Renewable Energy Credit Program Pending Final Approval Expanded EE&C Programs Pending Approval AMI Plans Remain in Place for All Jurisdictions All New Programs to be Integrated into PJM Markets 9

10 Estimated Peak Load Reductions PHI Blueprint Plans MW AMI-Enabled Dynamic Pricing AMI-Enabled Direct Load Control Energy Efficiency Enrollment in CPP is Voluntary CPP is the Default Rate Structure 10

11 11 District of Columbia PowerCentsDC TM Residential Smart Meter Pilot Project in the Nation s Capital Voluntary Participation by Invitation/Opt Out Provision $100 Incentive to Participate -- $50 Initially, $50 at Conclusion Installation of Smart Thermostat Residential Standard Offer Service Customers Only Approx. 875 Participants (additional 350 Control Group) City-Wide Participation All Residential Demographics Duration of Dynamic Pricing July 2008 to March 2010 Pilot Designed to Test Market Receptivity to Three Pricing Alternatives (Supply Portion Only) 1. Hourly Pricing 2. Critical Peak Pricing 3. Critical Peak Rebate

12 PowerCentsDC TM Customer Sites 12

13 Thank You! 13