PSC Approves $18M of Pepco's $68M Rate Increase Request
The increase will raise a household's monthly electricity bill by about $2, according to a statement issued by the Maryland Public Service Commission.
Of the $68 million rate increase requested by Pepco, the Maryland Public Service Commission has rejected $50 million.
Still, the $18 million rate increase "translates into a $2.02 typical residential monthly bill impact" (a 1.69 percent increase), according to a statement issued by the Maryland Public Service Commission on Friday afternoon.
In the rejection order, the commission "noted its overall dissatisfaction with Pepco’s performance, and characterized its request to increase returns to shareholders 'before Pepco corrects its sub-par performance' as 'backwards,' " according to the statement.
Pepco filed the request on Dec. 16, 2011. "The full record in the case included testimony from 31 witnesses and 11 days of evidentiary hearings, along with two public evening hearings and extensive post-hearing briefs. The record officially closed on June 25," the statement continued.
“Although the outages resulting from the June 29 ... storm and Pepco’s response to them are not, and cannot be, part of the record or our decision-making process in this case, we recognize that the statutory deadline for this decision comes at an unfortunate time," the commission's rejection order stated.
The commission "disallowed $7.9 million in expenses caused by Pepco’s past failures to maintain a reliable electric system ($6.4 million in tree trimming expenses and $1.5 million in expenses Pepco incurred to defend itself against the Commission’s reliability investigation)," according to the news statement.
The commission also "denied aspects of Pepco’s request that would have created new pre-payment surcharges, increased returns to shareholders and allowed the recovery of other projected expenses," the statement continued.
The $18 million rate increase that the commission did approve "is required to meet the legal and statutory mandates set by law to provide safe and reliable service," according to the statement.
And, the commission reduced the return allowed to Pepco's shareholders from 9.83 percent to 9.31 percent. Pepco had requested that the return be set at 10.75 percent, according to the commission's statement.
"Overall, the Commission found that Pepco’s [rate increase] application lacked the evidence required to substantiate its request. In denying three-fourths of Pepco’s rate request, the Commission considered instead its longer history of substandard performance," and balanced that with Pepco's "responsibility to invest in improving its infrastructure."
The complete 162-page Order No. 85028 may be viewed on the Maryland Public Service Commission’s website at www.psc.state.md.us.
Do you think the $18 million rate increase is justified? Tell us in the comments.
Emilee
7:38 pm on Friday, July 20, 2012
Pepco is such fail. What were they going to do with that extra $68 million? Bonuses for the top executives? Pepco does not deserve an extra cent in my opinion.
Dan Cohen
7:40 pm on Friday, July 20, 2012
O'Malley takes many thousands of dollars in PEPCO contributions, more than any other elected official in Maryland.
Al
12:53 am on Sunday, July 22, 2012
I've been unable to find anything that backs up your statement. Can you provide a link? What I found was fairly general and shows Pepco's contributions to Maryland politicians to be fairly even between Republicans and Democrats (41% to Republicans, 57% to Democrats, and 2% to "other").
macadoodle
8:30 pm on Friday, July 20, 2012
So let me get this straight: In the rejection order, the commission "noted its overall dissatisfaction with Pepco’s performance, and characterized its request to increase returns to shareholders 'before Pepco corrects its sub-par performance' as 'backwards,' " according to the statement"..... BUT they got a rate increase anyway? A mere slap on the wrist. Unbelievable!!!!
Jim Burnetti
10:54 pm on Friday, July 20, 2012
Does the increase apply to the fee PEPCO charges for not delivering power? Since that fee will be applied to our September bills, will we be charged more for the time our food spoiled (again)?
DARRELL HAMMERBACKER
7:09 am on Saturday, July 21, 2012
18 Million only? I guess O'Malley is only getting 18mil funneled to his Presidential Run.
Michael Shapiro
12:30 pm on Saturday, July 21, 2012
Did you actually read the story:
The $18 million rate increase that the commission did approve "is required to meet the legal and statutory mandates set by law to provide safe and reliable service," according to the statement.
Michael Smith
7:34 am on Saturday, July 21, 2012
http://www.councilmemberriemer.org/2011/01/pepcos-shocking-profits.html
Where have we seen this before?
Facts:
Pepco makes over $100 MILLION in Profits a year.
Pepco is the most hated company in America
Pepco spends less than ANY other power company on infrastructure, repairs, and equipment.
Pepco has more outages than ANY other power company in the history of the US.
Pepco increases rates to pay for infrastructure.
All of this boils down to corporate executives lining their pockets and those of their families and leaving Maryland out to dry.
Let us face the reality, which is that Pepco takes those rate increases, your incredibly high utilities payments, and then funnels most of it into pure profits.
The reality is that Pepco is exactly what's wrong with effective monopolies, and their executives are scum.
I'd love to see a personal statement admitting as much by the executives in control of Pepco, they need a good public shaming and need to spend all that profit back into the community they've sucked dry.
Pepco CEO Joseph Rigby needs to be dragged through the mud and any executives of Pepco AND their families need to publicly shame them into doing the right thing.
I know it's wishful thinking but the reality is that Maryland is getting taken for a ride and Pepco is posting record profits.
The Financial reports speak for themselves, over 100 million a year in PROFITS and they want rate increases. Stuff like this is what causes riots.
Arbutus Town Crier
10:19 am on Saturday, July 21, 2012
@Michael Smith, you are 100% correct, The infrastructure is in bad shape trees, vines are taking over the lines. I remember yearly they would clear all lines on the utility poles. Now all I hear is those are not our wires, phone, cable problem. The area that the poles lines were considered utility easement. My area is lined with trees, vines, dead trees, vines are so bad they would act as a sail on a ship taking down the infrastructure. Its nothing but finger pointing to keep responsibility of maintaining the infrastructure!
Matt M
9:43 am on Saturday, July 21, 2012
Does Pepco service Columbia? I know I have BGE at my house.
Arlene K. Polangin
10:11 am on Saturday, July 21, 2012
Once again, a MERE SLAP ON THE WRIST!! Our rates will still increase $2 a month despite a 6 day power outage and previous increases and the most unreliable service in the country. Looking at BGE and the VA company after Thurs. nights hard rain with thunder and lightning, Pepco had over 1600+ outages while the other 2 companies had less than a few hundred. PEPCO is unreliable and incompetent and then to have Mr. Graham, CEO, on tv telling us what a great job they did after the June 29 storm, adds "insult to injury." Time to move out of this area after living here all my life.
macadoodle
10:42 am on Saturday, July 21, 2012
Agree that the only solution now is to move out of the area. My sons in VA (Fairfax & Loudoun Counties) had minimal power outages during the big one. But then who wants to live in this state anymore and who will buy our properties? Clearing the trees is an option that can be done immediately or else you'll have the same situation with every thunderstorm and icestorm in the future. The voices heard on this page should be writing to the County Council. And examine politicians' positions and actions on PEPCO in the 2014 election and vote accordingly.
Dan Cohen
11:36 am on Saturday, July 21, 2012
PEPCO the new ENRON
Dan Cohen
11:39 am on Saturday, July 21, 2012
@macadoodle: Most Montgomery County Councilmembers and the County Executive take money from PEPCO, PEPCO corporate officiers and PEPCO lobbyists in the form of campaign contributions.
macadoodle
12:06 pm on Saturday, July 21, 2012
Didn't know that the Councilmembers as well as the County executive were (technically) on the PEPCO payroll. Did know that the Governor had succumbed after making a google search. That's why the posturing and the irate letters from the Council to PEPCO are just hogwash, pretending they care about their constituents, the outages, the rotted food, the expense of those who could afford staying in a hotel and the misery of those who couldn't. Means nothing to them. PEPCO is getting in return what they've been paying for and We the People end up with nothing. A sad commentary. But the electorate should realize that there are more of them than there are PEPCO contributors and that the real showdown can happen at the polls in 2014 or earlier if enough irate citizens file a recall petition. On their own, Council members won't pay attention. Their actions show they care very little about those who elected them. They even overrode a referendum, where the majority spoke and the Council members didn't bother to listen.
Concerned Citizen of Laurel
3:06 pm on Saturday, July 21, 2012
Well its time for PAY BACK! You can thank OWE MALLEY - MILLER & BUSCH for the rein of Terror on this State! I am starting with NOT paying the fee on next months bill! FOLLOW ME and do the SAME! Pay your bill, circle the fee added and note NON PAYMENT in protest! What they going to do, TURN the POWER off on EVERYBODY! Next, find every elected official who backed this fiasco and VOTE them out of office! When the new increase is added to your bill, once again do the same in protest and insist that the fee will NOT be paid until the resignation of PEPCO's management is FIRED! We all witnessed Graham's speech on TV and trust me, he is that STUPID! Never spent a day in the field, so how could he know anything about the job!
Arlene K. Polangin
12:16 pm on Saturday, July 21, 2012
After moving in 41 yrs. ago and getting yearly county tree trims, it went to 2 and then 3 yrs. and then finally to only when we call. Yes, getting rid of those huge trees is part of the problem. Mont. County has one certified arborist to check those trees, but they do need to come down. Our street was completely blocked by old limbs breaking off. Also, take down the trees on our own property; too bad because they help cool our homes and help the environment, but enough money spent in clean up. Getting the county to take down their trees another issue, even when they are "painted" for "take-down," who knows how long it will take????
Arbutus Town Crier
5:55 pm on Saturday, July 21, 2012
With all respect whom efforts to do well for your neighborhood, what officials did was diversion of tax money to political pet projects. How many laws and restriction does one need? If your taxes built it, they were to be maintaining it by your taxes, even before the economy crumbled. It’s called encroachment by negligence. You don’t see it maintained for years until the issue and/or major problem erupts.
By then it’s too late because we as a citizens were informed (We didn’t have the time because work family etc…) we let Government on Auto pilot. Now look what we have members of elected officials doing what they think we want (pet projects) but not what we NEED. Good people that do the government work for free with nice gestures now to supply people with material to do the work themselves, while they live travel and play on our dime.
Arlene K. Polangin
12:37 pm on Saturday, July 21, 2012
Michael Shapiro, Of course, I read the final decision. However, since Pepco did not provide required service the $18 million increase should have been set aside!!
macadoodle
5:00 pm on Saturday, July 21, 2012
@Frank. 1) PEPCO provides service in most of Montgomery County and Prince George's. 2) Your nasty comment to CCL was totally uncalled for.
jnrentz1
3:32 pm on Sunday, July 22, 2012
Well said.
Pam Coblyn
5:48 pm on Saturday, July 21, 2012
As I'm typing this my POWER WENT OUT for the fourth time since the June 29 storm!!!!!!! Granted it was only for a few seconds but I must sign off now to go through the process of resetting clocks and computers AGAIN. Oh, and that movie I was taping to watch tonight? That's history. All it takes is a blip of an outage--which we routinely experience in the Green Acres section of Bethesda--and our lives are interrupted. I am FURIOUS!
Arlene K. Polangin
6:39 pm on Saturday, July 21, 2012
Too bad people continue to send me comments that I made the "nasty" comments about CCL, which I did not! Please check back to see who is responding to whom. Thank you.
macadoodle
7:31 pm on Saturday, July 21, 2012
Yes, it was Frank who made the nasty comments about CCL not Arlene above. You're right, people should check who's who.
Ronald Joyer
11:28 am on Sunday, July 22, 2012
Another "Good Old Boy Handout", at our expense. Pepco only did what any company would do, ask for a increase. They aked for a large increase, which they knew, they would not get, and receive the increase amount they wanted all along. The PSC, who should be looking out for us, did not. Maybe we should be looking at replacing the PSC members??? When people get into positions (PCS) and deal with company's on a regular basis, they get real cozy with one another. (ex. Pepco and the PSC members) PSC chastised Pepco, then gave them a increase, that does not happen where I work.... Bad review means no pay raise, in the real world.
Buck Harmon
9:07 am on Monday, July 23, 2012
Monopoly money...
bbb
9:35 am on Monday, July 23, 2012
Mr. R Joyer......Is 10000000 million percent correct, They Got MORE then they actually wanted....They ask for "BIG TIME" money and knew they would NEVER get it BUT!!!!! they got more then they WANTED.... this will pay them MORE BONUS MONEY then they thought they would GET........WOOOOOOW Unbelievable....anybody else would b fired with this kind of performance....PCS this is SAD......
macadoodle
10:57 am on Monday, July 23, 2012
ONLY $18 million?? Does anyone realize how much money that is? And consumers STILL will have to pay the extra $2 per customer for incompetent and basically during the horrror weekend, non-existent service? Too many customers in the County had to move tree limbs themselves and block off roads. (saw it with my own eyes) PEPCO closed its customer service at 2pm at the height of the crisis. Please remember this atrocity of ineffective government dealing with a crisis in November 2014. Call your representatives on the carpet. Don't reelect those who played the PEPCO/BGE/PSC game.
I hate Pepco
3:08 pm on Monday, July 23, 2012
I'm still scratching my head trying to figure out why with gas heat, stove, oven and water heater, my Pepco bill was a whopping $296 for June 16 thru July 16. $45.00 more than the month before...AND I was without power for 5 1/2 days!!!! Am I missing something here? I see they weren't late sending out bills!!
macadoodle
5:48 pm on Monday, July 23, 2012
Why don't you make PEPCO come out and re-read your meter? Wage a complaint if you can find a live person to talk to. Doesn't sound right. On time in sending out the bills with a rate increase for their miserable service and are only late in answering emergency calls, taking calls re: outages and restoring service. As I said in an earlier post, at the height of the crisis, on Monday after the storm, I went to PEPCO in Rockville and found out that the service department closed, as usual, at 2pm. Security guard pointed me to a phone where I could contact someone. Seemed that everyone was moving at a leisurely pace at a most critical time in the County. Ho-hum, 9 to 5, weekends off, how a utilities company should NOT be run while We the People, the hapless peons, suffer. BUT, the bureaucracy will get their bonuses and the CEO is making millions. If he were running a top-notch utility company ranked among the best in the country, he certainly would deserve a high salary. In this case, he should be fired.
I hate Pepco
5:09 am on Tuesday, July 24, 2012
I agree. Thanks Macadoodle. I am truly outraged. Especially since between hotel and food, we shelled out over a eight hundred bucks for that almost 6 day period. I'm sure Pepco's CEO could live very well on a mil or two a year as well as he can on the 8 something he does now. And I'm sure he won't miss a meal if he doesn't get his bonus this year. I may miss one or two just from this month's bill. Crazy. Yet, we are expected to pay these exorbitant fees on our meager salaries and fixed incomes...you know, the chump change they want to give you after working 35-40 years of your life? Okay, that's for another issue! LOL