BGE proposed a public purpose microgrid pilot project with two sites in Maryland. The microgrids would provide power during widespread grid outages to critical services and surrounding communities. However, the PSC denied the request due to concerns about the impact on customer rates, site selection process, reliance on natural gas generation over renewables, and lack of energy efficiency requirements. The PSC suggested a more collaborative approach and considering third party options and future proceedings on microgrid deployment.

1. BGE’s Public Purpose Microgrid Pilot Proposal
EPRI/ Sandia Microgrids Symposium
August 29, 2016

2.  What are the primary power delivery challenges you are facing?
 How do microgrids address those challenges?
 What do you see as major technological gaps to microgrid adoption?
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Perspectives

3.  MD PSC interest in microgrid applications
 Case No. 9298, Order No. 85385: Suggestion that utilities consider microgrids
with generation technology as part of plan to improve restoration/resiliency.
 PHI microgrid commitment as part of approved Exelon/PHI merger
 Microgrids for Resiliency Task Force
June 2014 final report contained multiple recommendations, including
utility involvement in microgrids for overcoming initial barriers.
o On a short term basis, move forward with deployed pilot projects to serve
as a model for future deployment.
o Utility-owned microgrids are likely path forward for near term.
o Utilities should approach PSC and seek approval for public purpose
microgrids.
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Background Information

4.  Microgrids designed to provide power to commercial/government entities during widespread
and extended grid outages in order to enable provision of key goods/services to surrounding
communities and those able to access the microgrid locations.
 Site selection process accounts for mix of services, population, technical feasibility, system
reliability, system resiliency, access to major transportations routes and/or transit, and more.
 Each microgrid will incorporate switching and controls needed to island the site from larger
utility grid during outage events. The proposed microgrids are not intended to operate as a
generation resource to the site during normal grid operation.
 Natural gas generation with air emissions control technology, with capability to add energy
storage resources as necessary and incorporate existing or added renewables (e.g., estimated
40-50kW of existing rooftop solar on a structure within the Howard County site).
 Surrounding communities and the broader population are the primary beneficiaries. Microgrid
acts as a form of insurance against impacts associated with widespread/extended outages.
 Typical size of 2-5MW/microgrid depending on load served. And average cost of $3.5
million/MW.
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BGE’s Proposed Public Purpose Microgrids

5. • 676,000 residents within 5
miles of site
• Grocery, pharmacy, gas station,
medical offices, and other key
services located within site
• Significant community and
meeting spaces including
Edmondson-Westside High and
Enoch Pratt Free Library
• Nearby area had history of
longer duration outages during
significant weather events
• Convenient to access via public
and personal transportation
• Mix of established and newer
communities
Microgrid Site #1 – Edmondson Village (Baltimore City)

6. Microgrid Site #2 – King’s Contrivance Village Center (Howard County)
• 217,000 residents within 5
miles of site
• Grocery, pharmacies, bank,
gas station, and other key
services located within site
• Significant community and
meeting spaces including
the Community Center,
high school and two
churches
• Convenient to major
thoroughfares (I-95, routes
295, 32, 29, 100)
• Mix of established and
newer communities
• Site history of longer
duration outages during
significant weather events

7. Utility ownership (Allowed pursuant to PUA § 7-510(c)(6)):
“In order to meet long-term, anticipated demand in the State for standard offer service and other
electricity supply, the Commission may require or allow an investor-owned electric company to construct,
acquire, or lease, and operate, its own generating facilities, and transmission facilities necessary to
interconnect the generating facilities with the electric grid, subject to appropriate cost recovery.”
 Avoids issues related to franchise/crossing boundaries to serve multiple customers.
 Avoids third-parties having to become regulated “electric companies” under PUA.
No Negative Impact on Competitive Opportunities
 Did not displace base energy supply or supplier relationship with customer
 Market has capacity for both utility and non-utility participation in microgrids.
 BGE would conduct competitive procurement for microgrid assets and construction
Microgrid Issues/Questions
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8. Why a Pilot Proposal?
 Favorable way to test and review multiple variables, including better understanding:
o Whether design, equipment selection and installation deliver desired results
o Better understanding of financial and physical requirements
o Better understanding of land requirements and acquisition process
o Verify successful renewable energy capabilities, energy market contributions.
o Gauge community response; identify necessary changes for future microgrid applications.
Economic Development Potential
 Businesses in microgrid footprints remain open during electric grid outages.
 Construction/maintenance of microgrids leads to direct and indirect job creation.
 Business continuity aspects and potential to acquire critical goods/services during
grid outages can act as incentive for people and businesses to relocate to Maryland
Microgrid Issues/Questions (Continued)
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9. PSC denied BGE’s request without prejudice
 Impact on rates, concerns with strategy to charge all customers rather
than particular businesses or communities
 Site selection – more collaborative process among utility, local
government, state agencies and communities
 Use of natural gas generation, lack of renewable and storage
 Lack of requirement for significant energy efficiency and demand
response implementation among designated customers to minimize
generation requirements
 Use of third party “options” as alternate to utility owned systems
 Question need in light of other reliability /resiliency investments
 Consideration of future proceeding(s) on Microgrid deployment and “Grid
of Future” for Maryland
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PSC Decision