Utilities as Microgrid Owners? The Battle Continues...

The city of Washington has become the latest flashpoint in the debate over whether having utilities as microgrid owners is okay from a legal and competitive perspective.

The debate is occurring before the District of Columbia Public Service Commission, as it considers microgrid policy within its larger grid modernization plan (FC 1130).

Two industry giants squared off on the issue in recent comments filed before the commission.

Exelon, one of biggest utilities in the United States, pushed for a utility role, while NRG Energy, the nation’s largest independent power producer, urged the commission to ban utilities from owning and building microgrids and other forms of distributed energy.

Similar debates are brewing in other restructured states. So, what the district decides is important because it could influence thinking elsewhere.

The debate also is important because the commission plans to distribute more than $21 million for grid modernization test programs. Competitive utility affiliates are likely to vie for the money. A commission staff report suggests the money go to not only microgrids, but also advanced control systems, combined heat and power, demand management, electric vehicles, energy storage, fuel cells, solar, smart inverters, voltage regulation and district heating and cooling.

Exelon has argued in other jurisdictions that it makes sense for utilities to develop and own microgrids when they serve a larger public purpose. However, in the DC proceeding...Continue reading on Microgrid Knowledge.