Washington DC Power Sector Overview

Transcription

1 Washington DC Power Sector Overview Kenneth (Ken) Glick Public Service Commission Of the District of Columbia December 8, 2014

2 DC Power Market Area - Summary Single electric utility that has divested itself of generation resources, offering default sales service and non-discriminatory transmission and distribution services Must purchase at least 20% of its power, for resale under default service, from renewable resources by 2020, minimum of 3.5% solar generation by 2023 Operates an integrated electric distribution grid that spans two jurisdictions; confronted with potentially competing regulatory compliance requirements

3 DC Power Market Area - Summary Faces challenge of replacing aging infrastructure, overhead system co-existing with one of the densest urban tree canopies in the USA Rates and tariffs subject to prior regulatory approval Current emphasis on increasing reliability of day-today electric distribution service and shortening outage durations following major storm events Opportunity available through ECIIFA to relocate least reliable overhead electric circuits underground, up to $1 billion of investment funding approved by government, to be spent over a 15-year period

4 DC Power Market Area - Summary Demand-side management and energy efficiency programs imposed in 2008 legislation; legislation sets targets for demand reduction Administration of the demand-side management and energy efficiency programs implemented by utility is vested in a private company, acting as the Sustainable Energy Utility.

5 Physical Characteristics of the District of Columbia square kilometers in size; 646,449 residents and work-week daytime population of over one million; 23 rd largest city in the USA Linked through transportation and utility infrastructure with surrounding states of Maryland and Virginia Washington DC metropolitan area is 14,412 square kilometers in size with a population of 5.8 million people; 7 th largest metropolitan population in the USA

6 Physical Characteristics of the District of Columbia District is organized in quadrants (NW, NE, SW, SE) with the U.S. Capital Building as its center; each quadrant generally has its own population demographic and socio-economic level Politically, District is divided into 8 subdivisions, called Wards. Each Ward is divided into multiple Advisory Neighborhood Commissions The downtown center area of Washington, D.C. is the center of the federal government; the military central command is located in nearby Northern Virginia

7 Legal Requirements Affecting the District of Columbia Electric Distribution Grid Since 1899, power lines in the central downtown area have to be located underground Since 1896, trees have been protected, current law mandates development of an urban tree canopy extending over 40% of the land area of the District Renewable Portfolio Standard (RPS) requires electric utility to purchase 20% of its generation from qualified renewable energy sources by year 2020; minimum of 2.5% solar generation by 2023

8 Urban Tree Canopy Density Affecting the District of Columbia Electric Distribution Grid

9 District of Columbia Electric Distribution Grid Red lines show underground electric distribution circuits (feeders) Blue lines show overhead electric distribution circuits

10 Regional Power Market - Regulatory High voltage transmission interstate and regulated by Federal Energy Regulatory Commission ( FERC ); reliability standards set and enforced by quasi-public agency North American Electric Reliability Corporation ( NERC ) under authority delegated by FERC Generation construction and operation approved by states, prices for wholesale generation are de-regulated by FERC Local Distribution subject to state agency regulation: rates, conditions of service, issuance of securities/equity shares

11 Regional Power Market - Infrastructure PJM Interconnection operates the high-voltage transmission lines owned by investor-owned utilities as an integrated transmission system serving 13 states and the District of Columbia PJM is a Regional Transmission Organization ( RTO ) that provides access to high-voltage transmission capacity on a non-discriminatory basis, and subject to FERC rules and regulations

12 Regional Power Market - Infrastructure Utility serving MD and DC Potomac Electric Power Company

13 Electric Utility Serving the District of Columba Potomac Electric Power Company, a subsidiary of Pepco Holdings Inc. ( PHI ). Pepco - a regulated electric utility delivering electricity to more than 800,000 customers in Maryland and the District of Columbia Delmarva Power - a regulated electric and natural gas utility delivering electricity to more than 500,000 electric delivery customers in Delaware and the Delmarva Peninsula, and over 122,000 natural gas delivery customers in northern Delaware Atlantic City Electric - a regulated electric utility delivering electricity to 545,000 customers in southern New Jersey Pepco Energy Services - a leading provider of deregulated energy and energy-related services for residential, small business and large commercial customers

14 Pepco Operations Operationally integrated electric distribution system that is located in two jurisdictions State of Maryland and District of Columbia Single workforce manages and operates facilities located in both jurisdictions Subcontracts with affiliate to obtain certain management and administrative support services Subject to corporate policies and corporate oversight of parent holding company

15 Pepco Operations Pepco customer rate classes Residential Customer Classes Residential Service R Residential All-Electric Service AE Time Metered Residential Service R-TM Residential Aid Discount RAD Master-Metered Apartments Small Commercial Customer Classes General Service Non Demand GS ND General Service Low Voltage GS LV Temporary Service T Traffic Signal TS Telecommunications Network Service - TN

16 Pepco Operations Pepco customer rate classes Largel Commercial Customer Classes General Service Primary Service GS 3A Time Metered General Serivce Low Voltage GT LV Time Metered General Service Primary - GT 3A Time Metered General Service High Voltage GT 3B Rapid Transit RT

17 Pepco Operations Began as vertically integrated investor-owned utility Divested itself of company-owned generation, primarily a distribution service provider, but offers default sales service (standard offer service or SOS ) for customers not contracting directly with independent generators or energy brokers for commodity sales service - Subject to RPS renewables requirement for SOS sales - Required to provide Residential Aid Discount ( RAD ) service for low income residential customers(

18 Pepco Operations Required to provide Residential Aid Discount ( RAD ) pricing for low income residential customers partial

19 Pepco Operations Required to provide Residential Aid Discount ( RAD ) pricing for low income residential customers all electric

20 Pepco Operations - Challenges Operating an integrated electric distribution system that is subject to two different sets of regulatory requirements, depending upon the geographic location of the system facilities - Different vegetation management standards and practices - Different definitions for identifying major outage events - Different annual reliability standards to be met (SAIFI, SAIDI, CAIDI) - Different major power outage restoration guidelines and performance standards

21 Pepco Operations - Challenges Replacement of aging equipment - Some underground cables are over 100 years old - Paper Insulated Lead Cable ( PILC ) replacement and underground conduit size - Oil-filled switches and breakers that are obsolete - Aging transformers

22 Pepco Operations - Challenges Integrating modern remote and/or automated control technologies ( Smart Grid ) - Advance Metering Infrastructure ( AMI ) smart meters - Automatic Switch Re-closers ( ASR ) - Distribution Automation ( DA ) - Sectionalizing Devices

23 Pepco Operations Smart Grid

27 Pepco Operations - Challenges Vegetation Management - Removal of hazard trees - Large population of heritage trees at end of natural life span - Street trees in public spaces versus private trees located on privately-owned property - installation of taller power poles or offset crossarms - Installation of tree wire or spacer cable - Replacement of bare wire with pre-assembled aerial cable - Tree-trimming cycle versus hot spot pruning - Inspection practices - Innovations in payment practices for tree contractors

28 Pepco Operations - Challenges Improving reliability of service - 2% high priority feeder program - Most Susceptible Neighborhood feeder program - EQSS SAIFI/SAIDI standards - 24 hour restoration requirement for non-major service outages - Major Service Outage Restoration Plan - Major Service Outage Restoration Standards - Manhole inspection program and slotted manhole cover installations - Electric Company Infrastructure Improvement Financing Act

29 Pepco Operations - Challenges Improving customer service - Call center operations - customer response performance standards - Medical Needs Customer Notification Program - Customer notifications prior to planned outages - Customer notifications prior to undergrounding relocation work - Right-Place/Right-Tree and tree replacement program - Multi-lingual capacity - Community outreach hearings - Website development and customer education publications