Earlier this month, the Maryland Public Service Commission (PSC) denied a substantial portion of the Potomac Electric Power Company’s (Pepco) request to increase its electric distribution rates by $37.4 million, granting instead a more modest revenue increase of $8.75 million and a return on equity (ROE) of 9.62%.
The County, which had filed a brief opposing the requested hikes, prevailed on many issues, including the distribution rate increase. The County recommended that the rates be reduced by $1.5 million. In its Order, the PSC denied more than three-quarters of Pepco’s request and granted only $8.754 million (23%) of the amount requested. The new rates that went into effect July 1 represent an increase of about $0.93 for a typical residential customer’s monthly bill, or less than one percent.
Pepco had requested an increase in their Return on Equity (ROE) from 9.36% to 10.25%. After reviewing the position of all of the parties, the County supported a ROE of 9%. The PSC approved a ROE of 9.62 %.
See more details in the PSC release.