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Pepco Seeks 4.18% Rate Hike

Yesterday, Pepco filed a request with the Maryland Public Service Commission (PSC) for approval to recover approximately $41.4 million for work done in 2017. Pepco said they’re seeking this hike in order “to enhance electric reliability, install modern equipment and meet the expectations of our customers.”

Based on today’s request, the typical Pepco residential customer in Maryland using 812 kilowatt hours per month would see a monthly bill increase of 4.18 percent increase, or about $5.14.

In a statement, Pepco said” Pepco has embraced the challenge of improving its systemwide reliability performance to meet more stringent standards set by the PSC and has made the appropriate investments. Pepco spent approximately $222.9 million in 2017 to maintain and improve the distribution system’s safety and reliability and improve customer service through projects such as replacing and improving aging equipment and installing advanced equipment to automatically identify and isolate issues and automatically restore
service to customers.”

Papeco claims that over the period of January 1, 2012 through December 31, 2017, Pepco’s Maryland customers have experienced a 46 percent reduction in average outage frequency and a 61 percent reduction in average outage duration.

Even with this proposed rate request, Pepco thinks that the typical residential customer bill would still be about 19 percent lower than it was in 2011, thanks to lower electricity supply costs, operating efficiencies and energy efficiency programs. Customers also are seeing quicker storm restorations because of the availability of additional utility resources.

Pepco also thinks that the recent tax-reform legislation will result in meaningfully lower tax costs for Pepco, and thus a lower cost of service that we will pass along to our customers in the form of rate reductions or offsets to
investments we are making or other costs we are incurring for the benefit of customers.

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