The Public Service Commission of the District of Columbia has approved a request for proposals (RFP) to hire a consultant to produce a methodology and metrics for determining the value of distributed energy resources (DERs) in the district. The first phase of the analysis will result in a framework and dynamic pricing formula, which would then be implemented during the second phase.
The framework will be used to calculate rates of DER compensation. Proposal submissions are due on Nov. 2, 2020. This study is a part of the commission’s PowerPath DC proceeding, with the goals of ensuring that the energy delivery system remains safe, reliable, and affordable while also becoming more sustainable, interactive, and secure.
“As DER activity intensifies in the district, the commission is also working to ensure that DER benefits are maximized and that the costs of DER deployment are fairly allocated among developers, customer classes, and utilities,” said Willie L. Phillips, chair of the DC Public Service Commission. “By conducting this study, the commission is doing our part to help the district meet its goal of 100% renewable energy by 2032 and address the long-term impacts of climate change.”
With the traditional electrical grid, energy flows one-way from the utility to customer. DERs provide a two-way flow of energy where customers can generate energy and return it back to the grid. Common examples of DERs are energy storage, rooftop solar photovoltaic (PV) units, battery storage, microgrids, electric vehicles (EV) and EV chargers, voltage regulation, and demand response applications. By establishing a framework to assign values to these services, the commission can begin implementing innovative rates and tariffs that will compensate DER customers and investors for providing these services.
An initial draft report of the study is expected 12 months after the consultant begins work. The consultant will then present its findings to the commission, PowerPath DC Pilot Projects Governance Board, and other stakeholders. The governance board has been established to assist the commission in executing the Power Path DC vision statement.
