D.C. Council Gives First Approval to GRID Act Aimed at Cutting Utility Profits
The D.C. Council on November 10 unanimously gave first approval to the GRID Act, a 43-page bill by Ward 6 Councilmember Charles Allen aimed at bringing down rising residential electricity and gas bills.
As reported on November 12, the heart of the bill is reform of utilities' guaranteed profit margins. The Public Service Commission currently allows a return of 9.5 percent for Pepco and 9.65 percent for Washington Gas. The bill directs the commission to reset the rate at the yield on the 10-year U.S. Treasury bond plus two percentage points, roughly 7 percent, unless a utility can show that a lower profit would prevent it from attracting investment.
The District's chief financial officer estimates that this change alone would save residents about $52 million a year, $42 million on electricity and $10 million on gas.
The bill would also expand the Public Service Commission from three members to five, adding seats for grid and renewable energy and for consumer protection; pause approvals of multi-year rate plans based on forecast costs for 18 months; and cap door-to-door third-party electricity contracts at 110 percent of Pepco's standard supply price, voiding contracts above the cap and barring early-termination fees.
It would also create a virtual power plant program encouraging homes and businesses to feed power from batteries, smart thermostats and electric vehicles back to the grid at peak times, and allow renters to install small balcony solar panels.
The bill still needs a second vote, the signature of Mayor Bowser and a 30-day congressional review. Under current estimates, the savings would not appear on bills until fiscal year 2028.
Source: Council of the District of Columbia
Published by GSM · USA (original Chinese edition)
Photo: 华盛顿特区市政建筑（威尔逊大楼）。 / The John A. Wilson Building, seat of the D.C. government.
