We have been actively building a foundation to better accommodate the growth of DERs interconnecting with our distribution system. Part of that foundation is our advanced, centralized Distributed Energy Resources Management System (DERMS), which can manage the settings of DERs, like solar, through the use of DERs’ smart inverters.

Recently, we received approval from the Pennsylvania Public Utility Commission (PA PUC) to implement our DER Management Pilot Plan, which requires smart inverters for new DER installations starting in January 2021 and enables us to test and evaluate the management of smart inverters’ settings. Therefore, we can now use our DERMS to communicate with participating customers’ smart inverters.

What does DER Management mean to me?

We will install a DER management device at no direct cost to you. The device, which we will own and maintain, will allow us to monitor and manage your inverter to help prevent and remedy certain issues, such as voltage problems, that could impact your and other customers’ electric service. This may also help you avoid costs associated with distribution system upgrades

Depending on the size of the solar system and the inverter manufacturer, you may be able to use the DER management device as the electrical connection to your home or business instead of adding a circuit breaker to your main electrical panel, which can reduce the costs of installing your DER system. Once you complete your interconnection application, we will reach out to schedule an appointment to install the DER management device. You can review the REMSI Sketches to learn how to use the DER management device as the electrical connection into your home or business.

How can I learn more about DER Management?

Under the terms approved by the PA PUC, we are conducting a three-year pilot program to test and evaluate costs and benefits to the distribution system for both monitoring and actively managing DER smart inverters. All new inverter-based DER, like solar, must enroll in the pilot program, unless otherwise noted. The pilot program will evaluate the benefits that DER management may provide, including:

• Improved safety, reliability, power quality, and stability of our grid operations.
• More adoption of DER across our service area at a lower cost to customers.

You may receive an annual report regarding the smart inverter grid support functions used in the last year. These reports will provide details of any customer-specific impacts of DER management for anyone in the DER Management Pilot program and will be provided around the end of the PJM Planning Year. Customers whose smart inverter grid support functions are not used will not receive a report. Additional annual reports will also be provided to the PA PUC and will provide quantitative information relevant to the evaluation of the pilot program results. These reports will also be made available to the public. Public reports will not include identifying customer information.

For more information on the Pilot Program, reporting, or our DER management petition, see the DER Management Settlement as approved by the PA PUC and the DER Management Pilot Implementation Plan as filed with the PA PUC.

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