Peco
has called a retreat on plans to install a $35 million self-sustaining
“microgrid” in Delaware County after the proposal generated stiff opposition
from customer advocates. 

The Philadelphia Inquirer‘s Andrew Maykuth writes:

The
Philadelphia utility, in a filing
 posted with the Pennsylvania
Public Utility Commission, withdrew the plan to build the experimental
microgrid in an area of Concordville that has endured a large number of power
outages.

The proposed
microgrid,
 which could
operate independently of the regional power grid during a widespread outage,
included 10.5 megawatts of natural-gas and solar-power generators and 200
kilowatts of battery storage.

But
advocates for small businesses, consumers, industrial users, and retail energy
suppliers had questioned whether it was proper for Peco to reenter the
power-generation business it had been forced to spin off under the 1996 Electricity
Generation Customer Choice and Competition Act.

The
advocates also questioned whether all Peco customers would benefit from the
project, whose costs the utility had proposed to recover in rate surcharges
that would affect all of its 1.6 million customers. Peco said the impact would
eventually require an increase of about 29 cents a month for a residential
electrical customer using 1,000 kilowatt hours.

Peco’s
proposal “raises significant legal and policy questions,” the Pennsylvania
Office of Consumer Advocate said in a June filing with the PUC.


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