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PEPCO and Delmarva Launch Three-Year Pilot for Peak Load Reduction and Grid Services

September 03, 2025 | Public Service Commission, Independent Agencies, Organizations, Executive, Maryland


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PEPCO and Delmarva Launch Three-Year Pilot for Peak Load Reduction and Grid Services
The Maryland Public Service Commission's recent meeting highlighted ambitious plans under the 9761 Drive Act, focusing on a three-year pilot program aimed at reducing peak electricity loads by 2.6 megawatts. The initiative, spearheaded by Pepco and Delmarva Power, is set to offer $2.7 million in performance incentives to engage 5,000 customers in energy-saving measures.

Key to the program's success is a strategy centered on peak load reduction, which will be achieved through innovative customer participation and the integration of behind-the-meter storage solutions, including batteries and electric vehicles. The pilot aims to not only shave peak demand but also explore additional use cases that could enhance grid reliability and efficiency.

The compensation structure for participants is designed to incentivize engagement, offering $300 per kilowatt of nominated capacity and annual credits for system validation. A minimum participation threshold of 80% during events is required to qualify for full compensation.

As the pilot unfolds, the focus will be on learning from customer interactions and operational processes to refine the program. The insights gained will inform future grid services and potentially expand the program to include a broader range of customer segments beyond residential users.

The commission anticipates that the pilot's findings will contribute to a comprehensive report due in October 2027, which will outline the program's impact and explore further opportunities for capital deferral and additional grid services. This initiative marks a significant step towards a more resilient and efficient electric system in Maryland, aligning with the state's long-term energy objectives.

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