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Maryland Commission Issues Order on Requests to Track and Recover Costs to Develop Pilot Thermal Energy Network System Proposal
From Order:
[ *** ] In order to determine whether proposal development plans and costs are necessary to meet WARMTH Act requirements, reasonable, and in the public interest, the Commission finds it necessary to establish and review a record of detailed development plans and budgets. The Commission therefore directs BGE and Washington Gas to file by November 7, 2024, a detailed estimated budget for proposal development, including (1) utility administration, including but not limited to estimates for the types, number, and hours of company personnel already used and anticipated to be used for proposal development; (2) consulting and contracting, including but not limited to the cost and identity of consultants or contractors retained, the cost of consultants or contractors anticipated to be retained, and the purpose or function of any such consultants or contractors retained or anticipated to be retained for proposal development; (3) education and outreach, including but not limited to any personnel, consulting, or materials dedicated to education and outreach in the proposal development process; and (4) any other costs or estimated costs for the proposal development process.
BGE and Washington Gas are also directed to file by November 7, 2024, a detailed plan for proposal development, including (1) a summary and timeline of the company’s proposal development efforts to date; (2) a summary and timeline of the company’s forthcoming proposal development efforts; (3) a narrative explaining how the company’s estimated costs comport with these efforts and are necessary to meet the requirements of the WARMTH Act, reasonable, and in the public interest; and (4) a narrative explaining the company’s efforts and anticipated efforts to ensure that proposal development costs are or will be prudently incurred.
BGE and Washington Gas are also directed to file by November 7, 2024, their respective rationale for the requested method of tracking and recovering proposal development costs, explaining, as applicable: (1) the general appropriateness of the use of a regulatory asset to track and recover proposal development costs; (2) the value and appropriateness of any carrying costs; (3) the timing for inclusion of proposal development costs and any associated carrying costs in the company’s rate base; (4) the timeline or schedule for recovery of proposal development costs and any associated carrying costs; and (5) the customer classes from which proposal development costs and any associated carrying costs would be recovered.
BGE and Washington Gas are also directed to file by November 7, 2024, any other information relevant to informing the evaluation of whether proposal development costs and any associated carrying costs are necessary to meet the requirements of the WARMTH Act, reasonable, and in the public interest.
Comments on the BGE and Washington Gas filings shall be made by Commission Staff and any other interested parties by November 21, 2024.
Order No. 91390 (10/25/2024)
9749 (07/12/2024)
(Pilot Thermal Energy Network Systems)

