June 12, 2014

County Files Brief against Pepco’s Latest Rate Increase Request

Montgomery County has filed its initial brief with the Maryland Public Service Commission in Case No. 9336, in opposition to Pepco’s most recent rate increase request.

The utility has requested a distribution rate increase of $37.4 million, an approximately 2.8% increase for the typical residential customer total bill. The County has concluded that Pepco has a revenue surplus, or excess earnings, and that the rates should be reduced by $1.5 million.

Pepco has also requested an increase in their Rate of Return to 7.92%. The County supports a 7.31% Rate of Return.

Due in part to past aggressive County opposition, $50 million in PEPCO increase requests were rejected by the Maryland Public Service Commission in 2013.

See a copy of the County’s brief.

3 comments:

  1. After everything Pepco has done they have a LOG of nerve asking for higher rates. I've read the reports of their failing to properly fund the infrastructure, even while paying nothing in Federal OR State taxes. I've suffered the impact of their neglect. I hate how they have butchered the trees as a short term fix to their long term negligence and greed. And I remember that they actually tried (and YOU approved to allow them) to charge us for service they were unable to provide....that outage fee. HOW DARE THEY!

    PEPCO are why utilities should NOT be 'for profit' services.

    ReplyDelete
    Replies
    1. The County does not regulate and, thus, cannot “approve” the rates and fees of utilities such as Pepco. They are regulated by the Maryland Public Service Commission (“PSC”). However, the County has been a party in several cases before the PSC, including the last rate case Pepco filed.

      We believe the “outage fee” you are referring to is the Billing Stabilization Adjustment (“BSA”).

      As a party to the 2011 Pepco BSA case, the County argued against the utilities being able to collect BSAs during the first 24 hours of a Major Outage Event (the PSC had already eliminated collection after the first 24 hours of outages). The PSC agreed and now disallows utilities from collecting BSAs from the beginning of a Major Outage Event and continuing until all Major Outage Event-related sustained interruptions are restored.

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  2. Pepco spent millions of rate $ to install "Smart Meters" and now has stopped putting the meter readings on the monthly invoices. They offer no valid explanation, so they do not deserve any rate increase in my opinion. Are you comfortable with the elimination of meter readings on your bills?

    ReplyDelete

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