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How DC's Renewable Portfolio Standard Changes Might Impact Customers

By Direct Energy Business

Big changes are coming to Washington, D.C.

Recently, the District of Columbia increased and extended its renewable portfolio standard (RPS) target from 20 percent by 2020 to 50 percent by 2032. Additionally, the local solar carve out requirement was increased from 2.5 percent to 5 percent by 2032. 

The standard requires electric service providers to meet a certain amount of electricity demand with power generated by approved clean energy technologies, such as geothermal, solar, wind, biomass, landfill gas, marine/hydrokinetic technologies, fuel cells using renewable fuels and conventional hydroelectric power.

The District also created a “local solar carve-out” to the RPS, which requires a portion of the sources used to meet the RPS to come from local solar energy sources.  Although energy suppliers can choose to meet the rest of the RPS with several different forms of renewable energy produced anywhere in the region, the local solar carve-out means that for every unit of electricity sold, a portion of the energy must be generated by resources that are within the District or close to its borders. 

While the RPS is aimed at promoting cleaner power generation, all energy users in the District — including Commercial & Industrial customers — may soon see a corresponding and significant increase in the mandatory RPS fee, which accounts for a portion of the overall electric rate in the District.

What does this mean for you?

The increases are anticipated to rise anywhere from an estimated $1.50 per megawatt hour (Mwh) to $2.50 per Mwh depending on your individual electric load.

Lock in a lower rate for the long term

There are steps you can take to protect your business. If you act now, customer contracts entered into before the effective date of this Act will be protected from increases in RPS fees for 5 years or until the contract is either renewed or extended. This is, in large part, thanks to Direct Energy Business working with D.C. Councilmembers to add language into the law that protects existing customer contracts.   

You can lock in a lower electric rate for contract terms – up to five years in length – with Direct Energy Business, using a managed structure and contract term that meets your business needs.

Lock in a lower rate for your business today.

Posted: August 31, 2016

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