AOBA and Constellation held an energy market update on January 31, 2024 which provides members and participants with insight into the current energy market and regulatory rate cases in Maryland, DC and Virginia.
AOBA Alliance & Constellation Utility Committee Meeting
January 31st 11am-12pm virtual meeting
Energy Market and Utility Rate Case Update
AOBA and Constellation Energy will present a review of the current energy market and the impact on utility rates for AOBA members and AOBA Alliance participants.
William Sticka, Director of Technical Sales/Market Strategy for Constellation, will present a comprehensive update and view on the wholesale natural gas and electric markets and the impact on energy supply contracting for our members and Alliance participants. Frann Francis, Senior Vice President and General Counsel for AOBA, and Kevin Carey, Vice President of AOBA Alliance, will provide an update on the most recent information on Pepco and Washington Gas rate cases and their impact on members’ utility costs.
Utility Rate Changes Calendar
Maryland
• Pepco MD Case No. 9702 Request for $193.2 million Multi-Year Plan (“MYP”) rate increase New electric rates will be effective April 1, 2024, but will not be appear on customer’s bills until August 17, 2024. Year 1 rate increase will be collected between August 17, 2024 and March 31, 2025.
• WGL MD Case No. 9704 Request for $49.4 million rate increase New gas rates will be effective December 14, 2023
• WGL MD Case No. 9708 Request for New Stride Surcharges New Stride surcharges will be effective in December 2023
• Montgomery County Electric and Gas Energy Tax New energy tax rates were effective July 1, 2023
District of Columbia
• Pepco DC Formal Case No. 1176 Request for $190.7 million Multi-Year Plan rate increase New electric rates may be effective by July 1, 2024
• WGL DC Formal Case No. 1169 Request for $53.0 million rate increase New gas rates may be effective by January 1, 2024
• WGL-DC Formal Case No. 1175 Request for 5-year Pipe Replacement Plan for $671.8 million No information available at this time.
Virginia
• WGL VA Case No. PUR-2022-00054 Request for $86.6 million rate increase New gas rates were effective November 26, 2022 and refunds will be issued by November 29, 2023.
• DVP Case No. PUR-2023-00067 Fuel rate request – Temporary decrease New fuel rates were effective July 1, 2023
• DVP Case No. PUR-2023-00101 2023 Biennial Review of its Rates New electric rates may be effective January 18, 2024
AOBA Alliance and Constellation Host Energy Market Update
August 1, 2023
Alliance participants were updated on the current legislative and regulatory landscape in the energy sector by Frann Francis, Chief Counsel for AOBA and Kevin Carey, Vice President of Operations for AOBA Alliance.
Additionally, Constellation provided a comprehensive overview of the current energy market and its impact on operations for AOBA members and Alliance participants.
Washington Gas Requests a $49.4 Million Increase in Rates in Maryland
Washington Gas has filed with a rate increase proposal of $49.4 million revenue increase to be effective December 14, 2023. Included in the $49.4 million revenue increase is a $21.0 million request to transfer the Washington Gas Strategic Infrastructure Development And Enhancement Plan or “STRIDE” surcharges into base rates subject to Commission approval.
Washington Gas’ claimed justification for the new rate increase mimics prior requests to increase rates charged to Maryland customers. According to its Application, Washington Gas has not been able to earn the 7.09 percent overall rate of return (“ROR)” based on the 9.70 % return on equity (“ROE”) authorized by the Commission in the Company’s last rate case (i.e., Case No. 9651). “Current rates,” Washington Gas explains, “are not just and reasonable and are inadequate due to the growth in the Company’s net rate base and increases in operation and maintenance costs.”
Pepco Requests $193.2 Million Increase in Revenue in Multi-Year Rate Plan Application in Maryland
Pepco filed an Application for its largest distribution revenue increase ever requested in Maryland on May 16, 2023. Pepco has requested a cumulative $193.2 million increase in its base distribution revenue over the next three years (i.e., 2024-2026) to be effective April 1, 2024. Specifically, Pepco is proposing that rates increase by $74.4 million on April 1, 2024, by $59.4 million on April 1, 2025 and then again by an additional $59.4 million on April 1, 2026 through March 31, 2027. Pepco has also included in its Application a proposal that would extend the three year Multi-Year Plan request (“MYP”) through December 31, 2027.
In Maryland, the increased rates requested are as follows:
Year 1 Increase (2024) : $ 74.4 million
Year 2 Increase (2025) : $ 59.4 million
Year 3 Increase (2026) : $ 59.4 million
April Energy Market Update
April 26th 11AM
AOBA will provide new information on Pepco’s $190M rate increase request filed last week in the District which will substantially increase Pepco’s distribution costs for AOBA’s commercial and master-metered apartment members. Pepco’s projections range from 18% to 20%. However, AOBA’s initial review indicates Pepco may be greatly underestimating the effect on AOBA members.
AOBA will also provide status updates to ongoing Washington Gas rate cases in Virginia and the District. We will also discuss potential rate increase requests by both Pepco and Washington Gas in Maryland.
William Sticka, Director of Technical Sales/Market Strategy for Constellation, will present a comprehensive energy market update post-Winter and provide an update on what is driving energy markets currently and discuss some potential strategies to mitigate risk.
Frann Francis, Senior Vice President and General Counsel for AOBA, and Kevin Carey, Vice President of AOBA Alliance, will update the latest rate case information. Contact Kevin Carey for more information [email protected]
February Energy Market Update
AOBA Alliance and Constellation presented an energy market for participants and AOBA members on February 7th. The impact of changes to DC Solar Energy requirements were covered as well as ongoing rates cases in DC, Maryland and Virginia that impact Alliance participants.
Inflation Reduction Act Impacts
AOBA Alliance trusted partner, Constellation, provided some insight on the Inflation Reduction Act and its impact for businesses.
AOBA Utility Committee Winter Market Update
October 27th
10AM-11AM
AOBA and Constellation Energy will present a Winter forecast of energy markets and how that will impact utility rates for AOBA members and AOBA Alliance participants.
William Sticka, Director of Technical Sales/Market Strategy for Constellation, will present a comprehensive update and view on the wholesale natural gas and electric markets and the impact on energy supply contracting for our members.
Frann Francis, Senior Vice President and General Counsel for AOBA, and Kevin Carey, Vice President of AOBA Alliance, will update the regulatory landscape for energy legislation and other matters in the District and Maryland.
Contact Kevin Carey @ [email protected] for more information