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Pepco files request to raise rates again in Maryland
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Related Topics: Montgomery County
Montgomery County (Map, News) -
Electric bills for residents in Montgomery and Prince George’s counties could increase again next year if a request filed Friday by Pepco is approved by the Maryland Public Service Commission. The power company is seeking approval to raise its distribution rates, which are separate from its electric supply rates, by 3.9 percent. The request comes on the heels of a nearly 40 percent supply rate increase earlier this year.
Pepco serves about 512,000 customers in Montgomery and Prince George’s counties, and the rate increase would cover maintenance costs in those areas. For a residential customer using 1,000 kilowatt hours a month, the bill would increase by $5.33, going from $135.94 to $141.27. The additional revenue, which will bring in an annual total of more than $55 million, would cover maintenance costs, said Thomas Graham, president of Pepco Region, which covers the two Maryland counties and the District.
“We have worked hard to hold down operating expenses without sacrificing reliable service,” Graham said in a statement. “We recognize the strain that the higher supply costs have put on our customers in recent years and are doing all we can to keep our distribution rates as low as possible. But inflation and higher costs for wages, materials and new technology to improve service make it imperative that distribution rates reflect the current cost of providing safe and reliable service.”
Pepco has not raised its distribution rates since 1998. The state placed a cap on distribution rates in 2002 when the company merged with Delmarva Power and Atlantic City Electric. Pepco also has a cap in the District that will be lifted in August of next year. The company expects to file a similar request for a rate raise for its 235,000 District customers at that time.
While distribution rates have remained even, supply rates — which are determined by market energy prices — have increased significantly over the last several years. Earlier this year, Maryland residents were hit with a 38.5 percent increase and District residents with a 12 percent increase as a result of post-Katrina energy price increases. At the time, Pepco offered a deferred payment plan to customers, but only about 3 percent signed up.
Comments from Examiner Readers
8:45 AM MST on Sat., Apr. 21, 2007 re: "Co-op laws decried as prohibitive"
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Examiner Reader said:
So where are we with this effort? I assume it's dead or we would have heard more about it since December. It would aos be nice if reported would spell out approximately what BG&E's new proposed "price to compare" would be if nothing is done. They all say 50% increase, so to me that says to me: $0.113 x 1.5 = $.1695 (or there about) I'm glad I switched to WGES and got $0.089. I recently got a letter from them telling me I'll need to moving into a 1 or 2 year fixed contract soon. New rates for me are: $0.109 and $0.11 for 1 and 2 year contracts respectively. Note the site currently has offerings of $0.113 (for 5% wind power). The only thing close is Commerce at $0.092 and $0.098 variable rates. Pepco has a nice $0.127 100% green option so I could be saving the world. It's only appealing if the BG&E rates go up to what I calculated above (not including deferral interest). Feel free to chime in any time.
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