Ombudsman Needed to Address DC Solar Delays

Sierra Club DC Chapter Testimony
DC Council Committee on Business and Economic Development
DC Public Service Commission Budget Oversight Hearing
March 28, 2022

Thank you for the opportunity to submit written testimony regarding the DC Public Service Commission. We wish that public witnesses were allowed to testify at today’s hearing with the Commissioners as is the DC Council’s normal practice. But we do appreciate the opportunity to provide written comments.

Proactive Leadership Needed

As the Sierra Club testified at the Commission’s February 23 performance oversight hearing, the Commission must take proactive leadership to ensure it meets its statutory requirement to achieve DC’s climate commitments of eliminating fossil fuel combustion and achieving carbon neutrality by 2050. The Commission has a long history of merely reacting to proposals from the utilities, and then trying to “split the baby.” Emile Thompson, as a nominee before this Committee, promised proactive leadership. Now, as interim chairman, we ask that he provide that proactive leadership instead of following in the reactive footsteps of his predecessors.

Solar for Whom?

The Sierra Club, other stakeholders, and the news media have highlighted the ongoing problems with solar energy in the District.^[1] We were pleased that the Attorney General and Office of People’s Counsel filed a complaint with the Commission about Pepco’s pattern of systemic violations of DC law on solar energy, including illegally denying payments to 6,000 Solar for All customers.^[2] This is an issue the Sierra Club highlighted in our February 23 testimony before this Committee.^[3] We ask that the Commission finally take action to resolve this problem. We ask you, Councilmember McDuffie, to press the Commission today on how it will ensure that Pepco immediately ends all delays in solar interconnections and distributing accrued credits to low-income residents participating in the Solar for All program. For Exelon, Pepco’s multibillion dollar parent company, to fail to provide low-income residents the money they are owed for their accrued solar credits is a disgrace.

Solar Oversight is Lacking

To address the persistent problems with solar energy in DC, the Sierra Club calls for the creation of a solar ombudsman’s office in the Commission to address escalating fees and project delays, and actively promote the expansion of solar energy.

The Fiscal Year 2023 budget for the Commission should including funding for a solar ombudsman, which would provide the following:

1. Informational resources and advocacy for individuals and groups seeking to add solar energy, with a particular focus on support for consumer producers in their interactions with Pepco.

2. Targeted accountability and transparency for Pepco by streamlining the project approval, permitting and interconnection processes and investigating the roadblocks endemic in the current approach.

3. Proactive innovation, tools, and solutions for promoting both individual projects and solar energy generally.

The recently proposed rulemaking for new interconnection for small generators, and the context of escalating fees and delays in which occured (as captured in Sierra Club’s comments), is the perfect example of an area where a solar ombudsman could add significant value.^[4] An ombudsman would aid consumer producers currently struggling through Pepco’s processes, protect their interests in devising new solar rules, investigate the recent uptick in purported grid upgrade requirements, and push forward initiatives to develop a more systematic approach to grid modernization.

Far too many resources are wasted as potential solar providers are forced to navigate an opaque system full of additional costs, delays and uncertainty. The Clean Energy DC Act obligates the District to a 100% Renewable Portfolio Standard by 2032, and a solar carve-out requiring that 10% of the standard be met by local solar by 2041. Without immediate and specific action, those commitments are in jeopardy. The cost of a solar ombudsman would be an investment in more efficient processes, more successful projects and more focused support for solar. Solar ombudsmen in other jurisdictions have successfully accelerated positive change toward renewable energy, and the District’s current issues make it an ideal candidate for a similar approach. Funding in this year’s budget for the creation of a solar ombudsman would allow the Commission to begin to demonstrate to the community that it has heard our calls for action and is committed to meeting the District’s solar energy commitments.

The Future of Fracked Gas

We understand that AltaGas, the Canadian fracked gas company that owns our local gas utility, holds a franchise to operate a utility company in the District. Still, we were disappointed to hear Interim Chair Thompson state at the February 23 performance oversight hearing that AltaGas cannot be “disenfranchised.” Ensuring that AltaGas – and all DC’s regulated monopoly utilities – meet DC’s climate commitment of carbon neutrality is not akin to denying anyone the right to vote. The reality is that there is no empirically plausible role for fracked gas in a decarbonized future. DC residents have a right to expect that the Commission will ensure that DC’s utilities meet our climate commitments to end fossil fuel combustion and achieve carbon neutrality by 2050.

Secrecy vs. Sunlight

In Formal Case 1167, the Commission is determining how DC’s utilities will end fossil fuel combustion and achieve carbon neutrality by 2050. AltaGas has requested that the proceeding be largely secret, with the public denied the right to know how its own ratepayer dollars will be spent. Given the AltaGas plan to charge DC residents up to $5 billion dollars on fossil fuel delivery system replacement, and potentially billions more on unproven energy sources such as gas from cow manure, it is no surprise AltaGas wants to keep DC ratepayers in the dark. The Sierra Club believes sunlight is the best disinfectant and that the Commission should not allow AltaGas to hide its plans from DC residents.

Conclusion

Thank you, Councilmember McDuffie, for allowing the Sierra Club to provide written testimony before the Public Service Commission budget oversight hearing. We encourage your committee to provide appropriate oversight to ensure that the gas utility starts to make good faith efforts to transition off fossil fuels and that the electric utility ends roadblocks to solar energy in DC.