Model for Regulators to Address H.R. 1 Impacts

Deck: 

D.C. Commission Order Eyes Interconnections

Fortnightly Magazine - January 2026
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On November 26, 2025 the Public Service Commission of the District of Columbia issued an order establishing a temporary program to ensure interconnection delays do not prevent clean energy projects from qualifying for tax credits that are being phased out as a result of H.R. 1, the One Big Beautiful Bill Act (OBBBA).

In the order, the PSC recognized that “without immediate, temporary process adjustments, a substantial portion of District customers may lose access to federal tax benefits, leading to higher system costs and reduced solar adoption at a time when legislative and policy mandates call for accelerated growth in distributed energy.” In response, the PSC established a Temporary Conditional Interconnection Program (TCIP).

The program addresses steps in the utility interconnection process for customer-owned solar and energy storage projects that could cause delays and result in customers of the Potomac Electric Power Company (Pepco) missing critical deadlines for eligibility for remaining federal tax credits.

Federal Tax Credit Changes

H.R. 1 terminated several key energy tax credits for residential and commercial taxpayers. These changes accelerated the construction and utility interconnection timeline requirements for projects seeking to leverage those federal tax credits.

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