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DC Renewable Energy Portfolio Standard Legislation Effective October 8, 2016

Costly Increases to DC Renewable Portfolio Standard (RPS) – Law Effective October 8, 2016

On July 25, 2016, Mayor Bowser signed Bill 21-650, the Renewable Portfolio Standard Expansion
Amendment Act of 2016. The law was approved by Congress and became effective October 8, 2016.

The law amends the current Renewable Energy Portfolio Standard Act and increases the renewable
portfolio standard (RPS) requirement for suppliers while also increasing the compliance fees for suppliers that cannot meet the RPS requirements.

Under the prior legislation, compliance fees gradually decrease beginning in 2017 and each year
thereafter until 2023. Specifically, the prior legislation decreases compliance fees as follows: Fifty cents in
2011 through 2016; thirty five cents in 2017; thirty cents in 2018; twenty cents in 2019 through 2020; fifteen cents in 2021-2022; and five cents in 2023 and thereafter for each kilowatt-hour of shortfall from required solar energy assets.

The newly enacted law liminates the gradual decreases and maintains the compliance fee at fifty
cents through 2023 for each kilowatt-hour of shortfall from required energy ources. The additional funds will be used in part to fund improvements to esidential energy efficiency.

AOBA proposed an amendment that grandfathered the gradual decrease in compliance fees for
existing customer supply contracts. The law was enacted with the grandfathering amendment included.