Maryland regulators slash Pepco rate increase request by more than half – WTOP News
Pepco customers in Maryland will still see their electric bills go up, but by far less than the utility had requested after state regulators rejected more than half of its proposed rate increase.
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Instead, Pepco was approved an revenue increase of less than half of that at $50.9 million, according to a news release. The new rates went into effect on Friday.
Residents will be paying an increase of $3.94 extra a month compared to the Pepco requested amount of $10.24. This residential bill impact in Montgomery County is 2.25% and in Prince George’s is 2.23%.
“The order is the culmination of an extensive and open examination of financial data and witness testimony, submitted by Pepco, Commission Staff, the Office of People’s Counsel and other stakeholders,” said Kumar Barve, the chair of the Maryland Public Service Commission. ”The Commission thoughtfully balanced the necessity for secure and dependable power delivery with the critical mandate of ensuring that rate adjustments remain fair for Pepco customers.”
The commission said that Pepco’s capital expenses for the construction of the White Flint infrastructure projects were not prudent and that costs associated with these projects are disallowed at this time. The commission denied Pepco’s request to include increased costs based on projected expectations of inflation, labor and capital spend, according to a news release.
“Plain and simple, utilities should not earn unreasonable profits while everyday Marylanders can’t afford to pay their power bills,” said Maryland Gov. Wes Moore in a statement about the decision.
“We thank Maryland’s Public Service Commission for their judgement. This news is a major win in our administration’s fight to hold big corporations accountable and protect hardworking families and small businesses against excessive, inefficient utility spending.”