Pepco will not appeal the $1 million fine it faces for failing to provide Maryland residents with reliable electric service, the company announced.
The Maryland Public Service Commission issued the fine because Pepco failed to maintain its distribution system — in particular, by neglecting to cut back tree growth on a regular basis — and as a result forced customers to endure lengthy, frequen outages both during storms and on clear days, the utility regulator announced Wednesday. Those outages were also worsened by Pepco’s customer service.
Calling the Public Service Commission’s decision “harsh,” Pepco CEO Joseph Rigby emphasized that the company will continue its efforts to upgrade its system — efforts that are now mandated by the Public Service Commission.
“While we know there is more to do to improve reliability, we believe the actions we have taken are beginning to pay off,” Rigby said.
The Public Service Commission’s decision was announced less than a week after Pepco asked to increase Maryland residents’ rates by $68.4 million, or 4 percent, which would add $5.56 on the average resident’s monthly bill.
Though Pepco justified the increase by pointing to expenses the company is taking on as part of its improvement efforts, the Public Service Commission told Pepco Wednesday that it will not be permitted to push those costs onto customers.
If Pepco does not demonstrate improved performance, the utility could face additional fines.
