Pepco Offers Solutions to Modernize and Strengthen the Electric Grid

Pepco has submitted a new proposal under the 2024 Distributed Renewable Integration and Vehicle Electrification (DRIVE) Act to help modernize Maryland's electric grid. The plan makes use of technology like home battery storage, electric vehicles (EVs), and other smart devices to strategically support Pepco's distribution grid. By joining the program, customers can earn incentives for allowing Pepco to temporarily adjust how these devices use electricity during times of high energy use. This helps keep the grid running smoothly and lowers energy costs. The DRIVE Act proposal is a key part of The Exelon Promise : working for long-term solutions that keep energy affordable for Maryland families and businesses.

Pepco's proposal is in response to the DRIVE Act and includes the next-generation implementation of load management programs for the purpose of reducing electricity use and increasing customer affordability. Energy markets have changed; Pepco's proposal would innovate operations working to reduce capacity by utilizing dispatchable flexible resources. This would reduce strain on the electric grid and help keep energy costs affordable for customers.

In addition to the expanded capabilities offered in Pepco's proposal, the DRIVE Act presents the opportunity to align with Pepco's existing load management programs (currently filed under EmPOWER Maryland) by bringing them into the DRIVE Act. This will allow for more cohesive program implementation, more transparent evaluation and oversight, and a streamlined customer experience.

With supply costs continuing to rise, the DRIVE Act allows utilities to create a Virtual Power Plant (VPP) that connects customer-owned devices, like whole-home battery storage systems and EVs, to help balance the grid during high-demand periods, which ultimately lowers costs on consumers' bills. VPPs in California and Puerto Rico have shown to maintain system reliability and avoid outages by engaging directly with customers to optimize their usages in a way that benefits grid operations.

Pepco's primary goal is to help ensure all the communities it serves benefit from these grid modernization efforts by reducing individual, businesses and other customers' load or modifying behavior, helping to support a more efficient grid. By investing in the future of Maryland's energy infrastructure, Pepco is committed to delivering reliable, affordable, and sustainable energy solutions.