Members of D.C.’s City Council presented legislation earlier this year that could have severe implications for local energy policy. This would affect not only the swamp but also potentially the whole nation.
The bill would create a new type of regulatory body in the U.S. that has the power to manage and assess the utility it covers. The Distributed Energy Resource Authority (DER), also known as the DER, would control the City’s energy distribution planning. This function has been held in Washington’s prevailing electric utility Pepco for a long time.
The DER would review Pepco’s grid investment plans exceeding $25 million. This Authority would allow Pepco to allow outside developers access to the market through the company’s information.
Charles Allen and Mary Cheh were the legislators who introduced this bill in April. Both Democrats. While Allen is only three years old, Cheh has been serving the City since 2007. Their plan would make Washington DER the first national independent regulatory body to replace a utility.
According to a statement by Councilman Allen on April 11, the Authority’s purpose is to “gather information on how and when energy has been used, and create a market for renewably-sourced electricity to add D.C.’s grid,” according to a statement.
“Given climate change’s urgency and technological advances, it is now that we need to modernize the power system in our city,” Allen stated in the release.
Allen said that D.C. residents currently spend approximately $1.8 billion annually on fossil fuels bought outside the City. The City’s energy usage data will be made public so that citizens can better determine where and how much energy they are getting. In addition, a more competitive energy sector will lead to local economic growth and increase employment.
Cheh, a Councilwoman, said that ratepayers would benefit more from a neutral third-party system to address the City’s energy regulation. It will ensure that the grid administration is fair and efficient while maintaining a stable relationship between the utility and the City.
In the same statement by Allen’s office, Cheh stated, “It is exciting having reached this point in history, where efficiency is starting to be more cost-effective than building traditional electrical infrastructure. I believe this bill marks the beginning of a conversation which will result in a sea shift in how we view and understand sustainable energy in the District.”
This proposal represents a positive step for D.C. ratepayers, who would have more control over their local grid and be able to access the declining costs of clean energy sources like solar power.