A new payment plan that would help families defer a portion of rising electricity bills in Maryland will not be available to commercial customers, despite the fact prices could jump more than 55 percent for businesses in Prince George’s and Montgomery counties.
PEPCO, which serves the majority of Prince George’s and Montgomery county customers, along with Delmarva Power and Light Co., devised the payment plan to ease the transition to higher prices at the request of Maryland’s Public Service Commission.
PEPCO’s residential rates could increase by as much as 38.5 percent for the company’s more than 460,000 customers beginning in June.
While rate increases for businesses may be higher than those for residential consumers, the deferred payments were devised with low- and fixed-income consumers in mind, said a spokeswoman for Maryland’s Office of the People’s Counsel, a government agency involved in the payment plan negotiations.
However, local companies, especially smaller ones, stand to take a hit, said Rich Parsons, president and CEO for the Montgomery County Chamber of Commerce.
“We’re concerned about the impact to businesses from these rising prices,” Parsons said. “What’s going to happen to all the small guys when the rates go up is the landlords will pass all those costs on to the tenants. … I would like to see the commercial customers being given some more consideration.”
PEPCO has more than 126,000 commercial customers. The average increase for small businesses is expected to be about 52 percent. The average for all companies should be about 55 percent. While the deferred payments are not available to them, the power company will work with businesses to help reduce energy costs, said Mary-Beth Hutchinson, a PEPCO spokeswoman.
“We are planning to have a major outreach to small businesses to help them cope with high prices,” she said.
“It’s a big concern of ours.”
The commission was expected to approve the proposed payment plan and the proposed rate increases as early as Thursday evening.
About the plan
» PEPCO and Delmarva Power and Light Co.’s deferred payment plan is essentially an interest-free loan program that would ease the transition to higher payments.
» But a spokesman for Delmarva Power and Light cautions, “No interest doesn’t mean no consequences.” After a year of lowered payments, customers would have the deferred money added into future bills.
» Price increases would begin in June. Between June 1 and Feb. 28, 2007, customers would pay 15 percent of the rate increase. Between March 1 and May 31, customers would add an additional 15.7 percent to their bill, for a total of 30.7 percent. After June 1, customers would pay the full market price, plus the deferred money.
