Pepco halts Fairmount Heights project amid cybersecurity and contractor issues

In a recent administrative meeting held by the Public Service Commission of Maryland, significant discussions unfolded regarding the Fairmount Heights microgrid project, which has faced substantial setbacks. The atmosphere was charged with concern as representatives from Pepco and the Office of People's Council (OPC) presented their positions on the project's future.

Jacob Auslander, representing the OPC, expressed a cautious stance, stating that while they do not oppose Pepco's request to suspend the project, they emphasized the importance of learning from its failures. Auslander urged the commission to ensure that no premature decisions are made regarding cost recovery for the funds already spent, citing evidence of mismanagement by Pepco.

Matthew Seager, speaking on behalf of Pepco, acknowledged the company's dissatisfaction with the current situation. He outlined the reasons for halting the Fairmount Heights project, primarily the cessation of operations by HALA, the subcontractor responsible for the project's operating system. Seager highlighted the risks associated with moving forward without a tested system, particularly concerning cybersecurity. He also noted that an alternative proposed by Block Energy would incur additional costs and delays, further complicating the project's viability.

The commissioners engaged in a thorough examination of the implications of the project's suspension. Commissioner Richard sought clarity on whether the decision would impact future cost recovery determinations, to which Seager affirmed that no such determinations were being requested at this time. The focus remained on the immediate need to withdraw the project from the pilot program and to conduct a lessons learned analysis.

Gabby Levinson, Pepco's manager of smart grid programs, reassured the commissioners that the homes involved in the project would still receive power through the existing distribution system, despite the project's suspension. She also confirmed that solar roofs would be installed on the homes, ensuring progress toward a net-zero energy system.

As the meeting progressed, it became evident that while there was a consensus on the need to halt the project, concerns lingered about the potential implications for cost recovery in future rate cases. The OPC reiterated its apprehensions about Pepco's management of the project and the need for transparency moving forward.

In conclusion, the commission decided to take the matter under advisement, promising to issue a written order that would clarify the expectations for the lessons learned report and outline the next steps. The outcome of this meeting underscores the delicate balance between advancing energy projects and ensuring accountability in their execution, leaving stakeholders eager for the commission's forthcoming decisions.