The Maryland Public Service Commission rejected most of Pepco’s rate increase request at Friday’s deadline.

Pepco requested a $68 million hike. The PSC rejected $50 million of that. The approved portion of the request amounts to a 1.69 percent increase for customers — or $2.02 more per typical residential monthly bill. That increase meets requirements set by law to deliver safe and reliable service.

The PSC found that Pepco failed to justify an inreased return to shareholders, reducing the return from 9.83 percent to 9.31 percent. Pepco had requested an increased return of 10.75 percent.

The PSC cited Pepco’s history of substandard performance, calling it backwards to increase return to its shareholders before improving its performance.