Allegheny Power, a subsidiary of Allegheny Energy Inc., announced it has received approval by the Maryland Public Service Commission for its residential rate stabilization and transition plan.
The electric provider will use a series of rate changes to gradually transition residential customers from capped rates to market price rates by Jan. 1, 2009.
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Starting in June, residential customers will pay a distribution surcharge of 15 percent that will result in rates increasing by $11 per month. On Jan. 1, 2008, the surcharge will increase rates an additional 15 percent with the money collected going into a dedicated, interest-earning fund that will then be credited to customers accounts on Jan. 1, 2009, to reduce the effect of purchasing electricity at market rates.
The credit will last until Dec. 31, 2010, or until the money runs out. Refunds will be available to customers who move out of Allegheny?s service area or to the estates of deceased customers.
