AARP, OPC Oppose Pepco Rate Increase
At an AARP-organized town hall meeting on Sunday, opposition to Pepco's request to raise rates for Maryland customers by more than $67 million was strong.
Photos
Should Pepco be allowed to increase rates for Maryland customers?
The AARP doesn’t think so, and neither did the Maryland residents who showed up at AARP's town hall-style meeting on Sunday to discuss Pepco’s request for permission from the Maryland Public Services Commission to collect more than $67 million more from Maryland customers.
"Our position is: 'No more money until you improve reliability,' " AARP Maryland State Director Hank Greenberg said at the meeting, which was held at the National 4-H Youth Conference Center.
Pepco is asking for the rate increase to “cover its expenses of providing service and [to] have an opportunity to earn a fair return on its investor-supplied capital,” according to Pepco’s rate increase application, which can be downloaded from the PSC’s website.
Pepco’s “present electric rates are not just and reasonable and do not provide an opportunity for the [company] to earn a reasonable return on the fair value of [its] property devoted to electric delivery service,” the application continued.
But, “the rate payer should not be paying for improvements up front,” AARP Maryland Associate State Director of Advocacy Tammy Bresnahan said.
Furthermore, with the economy in a downturn and many Maryland residents experiencing furloughs, slashed salaries and “no cost-of-living adjustment[s] for years while the utility company still makes a profit,” the rate increase should not be allowed by the PSC, Bresnahan added.
The state’s older residents—many of whom are on fixed incomes—are particularly vulnerable to rapid increases in energy prices, she added, which is why AARP—formerly known as the American Association for Retired Persons—is helping residents mobilize to oppose the rate increase.
The increase—which Pepco requested from the PSC in January—comes at a particularly bad time for Maryland residents in suburban Washington, DC, because of the many power outages that have plagued the area in recent years.
In December, the PSC fined Pepco $1 million for poor service, Patch reported.
Pepco should “make services more reliable and then petition for a rate increase,” Bresnahan said.
Maryland District 18 Delegate Jeffrey Waldstreicher agreed, stating that “asking for a rate increase is abhorrent to us.”
AARP is not the only opponent of such a high rate increase. The Maryland Office of People’s Counsel is also against it.
The OPC is likely to recommend that the rate increase be only around $12 million, rather than the more than $67 million that Pepco has requested permission to collect, OPC Deputy Terri Czarski said.
Pepco just doesn’t need that much, Czarski added. “They budget [for reliability improvements] but don’t spend [all of it].”
“Over the last few years, “no utility in the state has gotten what they’ve asked for,” Czarski added.
Chevy Chase resident Marty Langelan added that, instead of a rate increase, the “$67 million should come back to us in refunds.”
To learn more about the rate increase request—case number 9286 with the PSC—visit the PSC's website.
To voice opposition to the rate increase, email David Collins through the PSC's website.
The PSC will hold two public hearings on Pepco's rate increase request:
- Thursday, June 21, at 7 p.m. in the Municipal Center Council Chambers (City Hall) of College Park (4500 Knox Rd.)
- Monday, June 25, at 7 p.m. in the cafeteria of the Montgomery County Office Building (101 Monroe St., Rockville)
Ddad99
8:50 am on Tuesday, April 24, 2012
To sum up the meeting results: We want it, we want it now, and we want it for FREE!
Michael Shapiro
9:51 am on Tuesday, April 24, 2012
Actually, PEPCO has not been tending to its business over the past few decades. They have ignored the necessity to upgrade or properly maintain existing delivery systems (this includes tree trimming, putting more wires underground, etc.) while providing good returns for investors, spectacular salaries for higher level employees, and overpriced pensions.
They are not alone in this. Differed maintenance is the bane of many such companies and organizations. Now the consumer is asked to pay extra for the company's years of neglect. I'm not sure what should be done (maybe cut salaries for some of the execs, maybe put a moratorium on dividend), but PEPCO, WSSC, etc. must be put on notice that the consumers shouldn't be required to pay two or three times as much in 2013, because some executive wanted his department's bottom line to look good in 2009.
B Allen
8:45 am on Saturday, April 28, 2012
The solution to "wanting it for free"? Move to Cuba or Venezuala or China. The problem is that these government blowhards put their 2 (non)cents into their equation. If they stayed out of it (because the gvmt produces nothing and these guys like the dumbass berliner and such) have no clue how to run a business, we would probably have better service. Also, if the idiots in the bethesda area that complain every time Pepeco wants to trim trees would shut up, then they would have better service. I say cut down all the trees that grow into the power lines and you will see the service level go up. It is easy to blame the businesses, look at yourselves in the mirror, you people ARE the problem, as is AARP and OPC, county councilmembers, OWEmalley, etc. MD legislators mad ethe BAD deal with the power companies yrs ago.
Jonathan Bruck
10:46 am on Tuesday, April 24, 2012
Yea, I thought PEPCO was discovered to have failed to provide adequate maintenance & upgrades for years before 2008-2010 major outages, that was covered by rates paid at the time. The maintenance they provided since then was the result of investigations that exposed their failures. Asking to raise rates to cover it is like double dipping.
Catalystnow
8:58 pm on Wednesday, April 25, 2012
Thanks Jon, for info.
B Allen
8:51 am on Saturday, April 28, 2012
With some of that going on and the increases imposed by our idiots in Maryland state and county governments, it is no wonder the rates are going up. If you keep the people (lib idiots) on the county council and the (lib idiots in the state legislature) out of the equation, then there won't be a problem. Power grabbing people like berliner of bethesda are the problem. He wants the government to take it over, then we will have a major mess. Cripes they have sole source on all the transportation, mail, liquor, etc in this county and they STILL continue to lose money (all of our tax dollars) each and every year and continue to go back to US, using US as their own personal ATM machines and taking more money from US (YEAH even you people that vote for this idiots)
MS
12:49 pm on Tuesday, April 24, 2012
The rate increase that Pepco is now requesting is for their distribution services, which comprises about 20% of a Pepco residential bill. Taxes and fees constitute another 10%.
The electricity that Pepco delivers to the customer is about 70% of a bill. It is itimized as "Generation Services" + "Transmission Services" on Pepco's bills. This is the part that can be reduced.
You can choose the energy company that supplies the electricity delivered to you by Pepco and get your electricity at a lower price.
Pepco currently charges residential (Schedule R) customers in Maryland 8.62 cents per kWh for electricity supply (generation + transmission). In June Pepco is raising the price to 8.98 cents per kWh.
Washington Gas Energy Services (WGES) will supply electricity for 7.5 cents per kWh, which is 13% less than Pepco's current price (8.62). When Pepco raises it's price to 8.98 cents per kWh in June, WGES' price (7.5 cents per kWh) will be 16% lower than Pepco's price.
To enroll for lower priced electricity, go to www.WGES.com . Where it asks "New to WGES? Enter your promo code here", enter code " EAHOME-EA1016 " (all capital letters). This promo code will get you WGES' 7.5 cents price offer.
If you enroll with WGES, Pepco will deliver the electricity as always, respond to issues, and do the billing as before - but you will pay less for your electricity. There is no service interruption. Nothing is connected or disconnected.
Catalystnow
8:56 pm on Wednesday, April 25, 2012
Thank you for the info, and my neighbor has signed with horizon, another choice.
Catalystnow
9:39 pm on Wednesday, April 25, 2012
Ok, Pepco Installed smart meters to siphon off our residential electricity, for business use 6/14/2011, Hoc installed in 2005 7.7 heat pumps which are very outdated the norm is 10-12 srrrs much more efficient,Crooks. Why pay 66% more,HOC installed 0 energy rating windows in 2005.My electric bill $300 for a one bedroom apartment, very low use 70 degrees, outdated heat pump of 7.1 put in 2005. Last summer mandated energy reductions for 60 minutes on 30 minutes off. And I barely use heat or air $200.It is like a very bad Monopoly Game, with the electric company.Count your opinion out if you own stock in PEPCO, you are comprimized. Eco-fascism, Give us a break, humane beings, need heat and air to live. PEPCO has risen its rates 3 times in 18 months.
Actually seniors in Chevy Chase, are going with out heat and the walls and foundations are cracking. Food or heat? Well building owners good luck with the greed because,your buildings will become unsound. Building owners received hundreds of thousands of dollars to sign on for the smart meters. From PEPCO. The blood is on their hands. And now more increases hmmm.
B Allen
9:01 am on Sunday, April 29, 2012
@Catalystnow with all the fees and taxes that MoCo and MD impose on the utilities companies, it is no wonder our price goes up. Berhliner is part of the problem, as is the other council members. They really want to take control of the electric distribution here and they have explored that arena. They have NO clue how to run a business, just take Ride on or Metro or even the Post Office, they have SOLE SOURCE and a MONOPOLY going on and they STILL LOSE MONEY and tap the taxpayers for more taxes and fees. The biggest problem in MD is the so called "DEAL" they made with the power companies yrs ago, both Pepco and BGandE...VERY BAD BUSINESS DECISION and BAD for the consumer. I personally know someone in the federal gvmt who runs the electricl grids" who said that was the dumbest deal made and was bad for the consumers, and get this he is a fricking democrat. You complain about the electric, wait until the "FLUSH TAX" OWEMALLEY is proposing and your water bills will go up also. BEST SOLUTION IS TO GET RID OF ALL THE CONCIL MEMBERS AND EXEC AND THE OTHER DEMS LIKE MIKULSKI, CARDIN VAN HOLLEN ETC AND GET NEW (CONSERVATIES) IN THERE. The conservatives no how to run a business and the government is a business, but these dems think we are ATM machines
Catalystnow
3:39 pm on Thursday, April 26, 2012
Because Pepco charges $20 to $25 to deliver the new suppliers energy how many kilowatt hours does one have to use each month,before they see the first dollar in savings,specifically apartments verses houses?
MS
7:56 pm on Thursday, April 26, 2012
There are 3 itimized sections to your Pepco bill: 1) Distribution Services (Pepco's distribution charges + taxes + mandated fees), 2) Generation Services (the cost of the electricity at the power plant), and Transmission Services (the cost to transmit the electricity from the power plant to the DC metro area where Pepco downloads it and takes custody of it). Generation Services + Transmission Services are referred to as "electricity supply" - this is what you can buy elsewhere.
Pepco always charges to distribute electricity through their infrastructure. You pay for distribution services whether your energy supply (generation + transmission) is supplied by Pepco or supplied by an approved alternative supplier such as Washington Gas Energy Services (WGES). You can enroll with WGES no matter how much (or little) electricity supply you use.
Page 2 of your Pepco bill shows your monthly electricity consumption for the past 13 months. Add the most recent 12 months usage and you will have your most recent annual usage.
If you reduce the price of your electricity supply by 1.48 cents per kWh, which is the difference between WGES's price of 7.5 cents per kWh and Pepco's price (beginning in June) of 8.98 cents per kWh, you will reduce your cost by $14.80 for every 1,000 kWh's of electricity you use. Project this forward for a year. If your house uses 20,000 kWh per year, you reduce your cost for electricity supply by close to $300 per year.
B Allen
8:59 am on Saturday, April 28, 2012
If the state and county governments stopped raising fees, taxes and charging the production facility (Mirant) a cap and trade tax, maybe the price will go down quite a bit. All of the regulations the libs put on companies drive the prices up, on everything. They don't understand how businesses are run. I called Berliners office when he proposed the "cap and trade tax" because he used to work for Henry (Scumbag socialist) Waxman, berliner took a play out of waxmans book and ran with it, his office "ASSURED" me our fees would not go up, HAHA. Well they did. I asked the girl handling the process for berliner if she ever worked in a business or had always worked for the gvmt, guess what...she never worked in a REAL business. Moral of the story, get rid of the dems running this county and the state OUT and get REAL peole in to run it or you will be giving them $.80 on every dollar you make.
Melanie
7:00 am on Wednesday, June 20, 2012
Entering that code into WGES's website got me a 7.8 offer, not 7.5 (but there is a 3 year guarantee). I also have a 7.9 offer from direct energy (guaranteed only through september). does anyone know horizon's prices, and/or another alternative? we went with clean currents for a while (windpower), but they couldn't seem to bill us, and instead made threatening phone calls to us periodically. after a few months of this nonsense, we canceled with them. has anyone else had that experience? we are certainly very unhappy with pepco.
Valdecyr Alves
12:04 am on Wednesday, June 27, 2012
Well, energy deregulation is here and consumers now have the choice. I'm in the BGE territory but I also switched suppliers at house and now I'm getting over 50% off of my entire bill. I have documented proof from other customers in the Pepco territory who are getting over 50% (up to almost 70%) off of their bill as well with the Free energy program that my supplier offers. No, you don't have to move overseas to get it for free. I can show any resident in Pepco, or BGE territory how to not only get a very competitive rate, but also legitimately get their supply for FREE. Don't hesitate, talk to me and I'll educate you. I'm an energy consultant and that's what I do, I educate the consumers and you make the choice. Obviously, the company is PSC-licensed, BBB accredited since it started operations and with "A" rating, and has almost a million customers now. Oh, btw, you get your used kWH back to you in benefits as well. Just contact me for more info:
Valdecyr Alves (Val)
301-742-6248
valdecyr.alves@gmail.com