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Pepco Response to OPC Questions about Connectiv Energy Sale 5/4/10

On April 21, 2010, Pepco Holdings, Inc. (PHI) the parent company of PEPCO, announced it had reached agreement to sell to sell its Conectiv Energy power generation assets to Calpine Corporation (Read the full Press Release here ) for $1.7 billion. This announcement caused some D.C. PEPCO consumers to question whether this deal had any impact on their rates and services.

In response to consumer inquiries, OPC sent a letter to PHI CEO Joseph Rigby to learn more about the impact of the sale on District consumers. PEPCO’S responses to OPC’s questions are included here for your information.

Today, the Office of the People’s Counsel (“OPC” or “Office”) was informed that Pepco Holdings, Inc. (“PHI”) has reached an agreement to sell its Conectiv Energy power generation assets to Calpine Corporation. This transaction appears to be one of a number of actions PHI has taken to exit the merchant power business and be repositioned as a regulated transmission and distribution company.
Read the entire document here.

OPC-DC Urges PSC to Reject Pepco’s Request for Additional $51.7 Million in Revenues to Provide Distribution Service

In May of 2009, Pepco filed a rate case requesting $51.7 million in additional revenues, less than 16 months after a $28.2 million rate increase went into effect.
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OPC-DC Investigates Consumers Complaints of Unusually High Pepco Bills --

Galvanized by increasing consumer complaints, as well as media reports, on the issue of unusually high Pepco electric bills during the 2008-2009 winter heating season OPC-DC conducted an independent investigation.

Smart Grid Education Outreach

The smart grid will soon be deployed in the District of Columbia at a cost of more than $88 million. In 2009, the Office focused on learning and sharing as much as it could about smart grid deployment in the United States and internationally to better educate itself about the emerging technology.
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Advocating to Ensure Smart Grid Benefits for Consumers

Throughout 2009, the Office continued to advance its position that Pepco’s deployment of smart grid technologies must be done in a manner that delivers tangible benefits to consumers. Specifically, the Office’s goal is to ensure that at the end of the day when the smart grid is fully deployed, consumers receive safe, adequate and reliable electric service with rates that are just and reasonable.

In September 2009, OPC-DC filed comments supporting WG’s proposed tariff that would prevent firm customers from paying for service actually provided to another class of customers, interruptible customers. The Office agreed with WG that the utility’s firm customers, those customers who receive naturalgas service that is intended to be available at all times, should not subsidize costs caused by customers whose gas service can be curtailed on

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