Pepco has asked the District of Columbia PSC to investigate whether WGL Energy Systems, Inc.’s operation, under lease, of Walter Reed’s legacy electric distribution system at The Parks at Walter Reed is subject to regulation by the Commission as a public utility.

The Parks is slated for a mixed-use development with a mix of open spaces and retail, residential uses with diverse housing options (including non-profit affordable housing units), a senior housing center, commercial offices, institutional spaces, medical care facilities and cultural and community uses, encompassing in excess of 3.1 million square-feet of residential, office and retail space

Pepco argued that the development is not a microgrid, and requested that the PSC determine whether the system meets other exemptions from regulation as a public utility (single customer, etc.)

Pepco said that, if the system is required to be regulated as a public utility, pursuant to Section 34-1506(a)(1) of the D.C. Code, "WGL Systems would be prohibited from operating 'its distribution system in a manner that favors the electricity supply of the electric company’s affiliates.'"

Pepco said that, "This would appear to be in direct contravention of the framework created at The Parks given that the residents of The Parks are not permitted to select their own electricity supplier but are required to purchase their entire requirements for electricity from WGL Services, an affiliate of WGL Systems."

See Pepco's petition here (FC 1153)