Month: July 2024

Maryland PSC Decision Reduces Pepco’s First Year Rate Increase by 62%

On June 10, 2024, the Maryland Public Service Commission issued its Order on Pepco’s Application for a Multi-Year Rate Plan which rejected Pepco’s proposed three-year and 9-month MYP and approved a one-year revenue adjustment of $44,629,000, instead of the $117.2 million Increase in revenue sought by Pepco for the first year of its MYP. AOBA advocated for rejection of Pepco’s MYP and approval of a rate increase based on an historic test year.

Specifically, Pepco claimed “cumulative revenue deficiencies of $117.2 million for the 12 months ending March 31, 2025, $160.5 million for the 12 months ending March 31, 2026, $193.2 million for the 12 months ending March 31, 2027, and $213.6 million for the proposed nine-month extension period ending December 31, 2027.”

The Commission’s decision results in a 62% reduction in Pepco’s first year rate increase request, and denies Pepco the further yearly increases listed above.

On June 20, 2024, Pepco filed its Compliance Rates to go in effect for usage on or after July 1, 2024. Compliance rates are expected to be approved by the Maryland PSC in July.  This rate increase was filed to go into effect on April 1st but because of the delay until July/August, Pepco will have to collect their approved increase of $44.29 million in 7 ½ months vs. a traditional 12 months.  Pepco will file a Rider/Surcharge to go in effect from August 2024 through March 2025 to collect the shortfall in revenue. Absent a new rate increase Application from Pepco, the Rider/Surcharge will not be effective after March 31, 2025.