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 residentswith 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.
