Report: Customers to Pay Pepco, BGE for Lost Storm Income
Pepco and BGE will reportedly be able to charge a fee for losses suffered when power was out to hundreds of thousands after the June 29 storm.
Pepco and BGE are allowed to recoup some of the money lost after the severe storm June 29 by charging a fee to be paid by customers who were without power, 9 News Now reported.
"It's the law," Pepco spokesman Bob Hainey told 9 News Now. "It's called bill stabilization."
"The storm adjustment kicks in automatically," Maryland Public Service Commission spokeswoman Regina Davis told 9 News Now. "The BSA (Bill Stabilization Adjustment) is calculated and applied by the companies, but checked by PSC staff and we make the utilities correct it if they get it wrong."
The storm adjustment only covers the first 24 hours after the initial power outage, however—not the entire outage.
According to Pepco's website, "The BSA is a monthly adjustment that ... will lower rates if Pepco is receiving more revenue than the PSC has approved, and will increase rates if Pepco is receiving less revenue than the PSC has approved." That way, Pepco can "promote energy efficiency programs that will help customers reduce their energy use and drive down electricity supply costs," the website adds.
Should bill stabilization result from a storm-induced power outage? Tell us in the comments.
Maryland People's Counsel attorney Theresa Czarski added that customers "would likely see a charge of less than a dollar for the adjustment," 9 News Now reported.
Such fees are not allowed in Virginia or Washington, DC.
Editor's note: This post has been updated.