CASE STUDIES 47 CASE STUDY V – PROGRAM APPROVAL PERSEVERANCE PEPCO – (DC PLUG) What caused the delay of program approval initially in DC? Lessons learned and new approach resulting in approval. CHALLENGE In 2003, PEPCO and the DC Commission first investigated the concept of undergrounding all or part of the overhead electric system. The initial 2004 study estimated approximately $4 billion to place all of its remaining above-ground lines and cables underground. The next eight years saw additional study, including a significant 2010 study by Shaw Consulting Group, various assessments, and extended discussion on the topic, but little action. Then the 2012 derecho experienced by the Mid-Atlantic changed the focus and discussion with a more intense focus on how to structure an undergrounding program that would have a substantial impact on reliability. SOLUTION After the 2012 derecho, the political machine was positively engaged when Vincent C. Gray, Mayor of DC sponsored the Power Line Undergrounding Task Force to more aggressively develop a reliability and resilience solution in collaboration with PEPCO. This focus for finding a solution was further accelerated by the January 2016 blizzard. In 2017, the Undergrounding Act that amended the Electric Company Infrastructure Improvement Financing Act of 2014 allowed the effort to move forward. By 2018, the DC PLUG program was developed that, over seven years, was designed to migrate up to 30 of the District’s most vulnerable overhead distribution lines underground. Financial contributors for approximately $500 million include $250 million from PEPCO, $187.5 million from DC taxpayers, and $62.5 million from the District’s Department of Transportation (DDOT). RESULT After 14 years of assessments, study, discussion, and the experience of three major storm-related outages to Washington DC in a decade, a consensus was reached to move forward on a resilience, hardening, and undergrounding program to improved reliability. It took another two years for the June 2019 groundbreaking and actual construction to start. The DC PLUG program, a $500 million joint undertaking by the District and PEPCO, is expected to improve reliability by 95% on targeted segments against the wind, ice, and snowstorms as well as falling trees. REFERENCE CONTACT Christina Harper, Communications Manager, PEPCO Holdings, (202) 872-2217, Christina.Harper@exeloncorp.com William “Bill” Gausman, (Retired) SVP Strategic Initiatives, PEPCO Holdings, Bill Sullivan, Vice President, Electric and Gas Operations, PEPCO Holdings, SOURCES #128, #138, #163, #167
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