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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.

Read more on 9 News Now.

 

Editor's note: This post has been updated.

 

Related Topics: Bill Stabilization, PEPCO, Power Outages, and derecho

tanisha

11:49 am on Wednesday, July 11, 2012

"It's the law," Pepco spokesman Bob Hainey told 9 News Now. "It's called bill stabilization."

NO! This is what happens when PEPCO and BGE line the pockets of politicians with their campaign contributions and we allow it!

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Dale Kemery

4:11 pm on Thursday, July 12, 2012

In July 2011, Pepco was named the most-hated company in America. (Washington Times: http://www.upi.com/Business_News/2011/07/12/Pepco-utility-ranked-worst-company/UPI-91391310477941/) It's easy to see why. So Pepco follows up by throwing acid in the faces of its customers. May they rot as badly as their rotten service.

karen

11:50 am on Wednesday, July 11, 2012

Unbelievable! This in what i thought to be a consumer-friendly state!!

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Don Platt

8:23 pm on Wednesday, July 11, 2012

the consumer is the politician lining their pockets from the voters!

Shannon Robinson

11:50 am on Wednesday, July 11, 2012

WHAT THE HELL?! Can we customers charge PEPCO & BGE a fee for NO POWER? This is NUTS!

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Barbara

1:27 pm on Wednesday, July 11, 2012

AGREE! It should be the other way around!

2kitty2

11:57 am on Wednesday, July 11, 2012

Are you kidding me? Pay for my power being out for 5 days? Even if it`s one cent I shouldn`t have to give BGE anything. Oh please...as if not collecting it will break their bank. Just another example of what`s wrong with companies these days.

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MocoLoco

11:57 am on Wednesday, July 11, 2012

It would help Pepco's case if they can point to times when our rates were lowered under this law.

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BRIAN

11:58 am on Wednesday, July 11, 2012

PEPCO SHOULD PAY WE THE PEOPLE FOR THERE FAILER TO DO THERE JOB !!!!

THEY SPENTD ALL THIS MONEY ON CUTTING DOWN TREE'S AND LIEING TO THE PUBLIC ABOUT THIS WILL STOP OUTAGE'S

BULL SHIT. MARYLAND SHOULD FINE PEPCO FOR THIS LIKE 5 MILLION FOR STARTERS.........

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Maryland Dog Federation

11:58 am on Wednesday, July 11, 2012

well, then, I guess in that case, if they are making money from the outage, we can bill them for the spoiled groceries in our refrigerators and freezers....

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Judy Fiml

4:26 pm on Wednesday, July 11, 2012

Yep, they need to pay us for food... oh and by the way, hotel, meals out...
Are they serious??? Shame on them and shame on us if we do not respond on this one!

Nancy Shampo

12:02 pm on Wednesday, July 11, 2012

Let me get this straight, I am paying for power I didn't receive and now I am going to pay for BGE to restore the power I am not receiving. It isn't enough that I pay for something I didn't receive, and that I have to throw out my groceries, but I also have to pay them to fix it so I can receive the product. Talk about convoluted laws, how much did they pay and who did they pay it to. The consumer is really getting it stuck to them with this.

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Richard Rogers

12:03 pm on Wednesday, July 11, 2012

This is absurd. This is like giving Exxon the authority to send me a bill whenever a hurricane takes out several of their off-shore drilling rigs and they need to recoup their losses.

Maryland laws suck! Who the hell are the idiots running this state?

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KS

1:01 pm on Wednesday, July 11, 2012

'Who the hell are the idiots running this state"

Liberal Democrats

Tbos

12:03 pm on Wednesday, July 11, 2012

What about those of us that are self-employed, who had no income for the days that we lost power? Can I bill them for that?

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Ken Montville

12:06 pm on Wednesday, July 11, 2012

This is a result of poor regulation. The Public Service Commission is at fault that this travesty is allowed to exist.

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KS

1:03 pm on Wednesday, July 11, 2012

Regulation?

Perhaps Ken you missed this
"It's the law," Pepco spokesman Bob Hainey told 9 News Now. "It's called bill stabilization."

This is what the Church of Al Gore brings; thanks Dems

Bob Hydorn

12:08 pm on Wednesday, July 11, 2012

This is absolutely unbelievable This is the battle our elected officals need to fight.

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Al Carr

12:57 pm on Wednesday, July 11, 2012

Bob,
This is a battle that some of us have been fighting since 2011.
Unfortunately the bill that would have corrected this was defeated in a house committee vote. We will keep trying.
http://mlis.state.md.us/2011rs/votes_comm/hb1278_ecm.pdf

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Bob Hydorn

4:07 pm on Wednesday, July 11, 2012

Al, We will be there to support you all the way.
Bob

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Darlene King-Mohler

6:25 pm on Wednesday, July 11, 2012

Al Carr, Do you have any kind of petition for citizens to sign? If so is it on website that you can go to and sign the petition you are interested in? I think the website is Changes.org. or something like that. If you have a petition for signatures I would be more then happy to sign it.

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Danna Walker

12:10 pm on Wednesday, July 11, 2012

We're about to file a story on the county executives in Maryland asking for reform on electricity service.

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H. Willis

12:10 pm on Wednesday, July 11, 2012

So, a company can actually charge a customer for NOT providing services. This is like a gas station charging you an extra fee because you didn't fill up with them last week. Or the grocery store charging you a fee because you didn't shop with them last week because you were out of town. How is this legal? This sounds like something that goes on in a place like China or Russia - NOT in the US.

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KS

1:05 pm on Wednesday, July 11, 2012

.....or Taxing you for not buying something?

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Barbara

1:30 pm on Wednesday, July 11, 2012

This is crazy - it should be the other way around.

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Resident

5:59 pm on Wednesday, July 11, 2012

Or Annapolis, MD.

And yes, you have it right. Poor, poor, PEPCO has Convinced our elected official$ that there is an urgent need to make up for lost revenue when they fail to deliver product. Regardless of the reason or lack of substance. SO, the poor maintenance, the aging equipment, the archaic infrastructure do not cost the company a dime in lost revenue. $$$$$. $$$$$. Welcome to Annapoli$, MD.

Linda B

12:12 pm on Wednesday, July 11, 2012

Can we charge PEPCO for the loss of food, the displacing of seniors because of having no air conditioning, the cost of having to purchase a gas generator since PEPCO is so unreliable! Lets call it a "Customer Bill Stabilization" because we also lost money during the outage. Our insurance covers "Acts of Nature" why shouldn't Pepco. Give me a break! :X

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Darlene King-Mohler

6:10 pm on Wednesday, July 11, 2012

I totally agree with you. How come they can charge us for their lose, but yet we receive no compensation for lost food which for some people added up to quite a bit of money lost. It seems like another case to me where the rich get more richer and us non rich people get screwed!!! What makes PEPCO think that we can afford in our budget to pay them for lost money??? This is just about the stupidist law I have ever heard of.

John Floyd II

12:12 pm on Wednesday, July 11, 2012

Are we the rate-payers also entitled to our own "Bill Stabilisation Adjustment" for what we've lost in groceries and perishables, productivity, work-time, and income? Now, BG&E and PEPCO expect us to cover their income losses due to their own inept maintenance practices, reduced work force, and general incompetence? Even if "customers would likely see a charge of less than a dollar for the adjustment", it's not bloody right after what we've all just been through. Cheeky bastards!

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Ann Finch

12:12 pm on Wednesday, July 11, 2012

Am I reading this right? " "The BSA ... 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..." "
So, if they get less revenue say, because people are using energy more efficiently, the rates go up? And this is somehow supposed to "promote energy efficiency?" Am I living in a Kafka novel or a Huxley one?

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Bowie Xpress

12:12 pm on Wednesday, July 11, 2012

”From 2008 to 2010, Pepco CEO Joe Rigby earned $8.8 million and Pepco top officers earned more than $22 million. During that same period, Pepco reported $882 million in profits.." In the last four years, Pepco has actually paid a negative 39.5 percent corporate tax rate, meaning it received millions in tax subsidies from the government."

Turn your outrage into action. Use the link above to contact the Maryland Public Service Commission and let them know that there will be a voter led referendum on the Bill Stabilization Adjustment "law."

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JK

12:12 pm on Wednesday, July 11, 2012

What about all the food people lost. Who is going to refund them?

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Alana Prange

12:13 pm on Wednesday, July 11, 2012

You have GOT to be kidding me. "it's the law"? It should be illegal.

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H. Willis

12:14 pm on Wednesday, July 11, 2012

Also, this is what happens when you privatize utilities. When it's all about profit, consumers get screwed.

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JustABill

6:58 pm on Wednesday, July 11, 2012

Sorry H. Willis but privatizing the utility is not the problem poorly crafted legislation and corrupt regulation courtesy of our democrat controlled state government and allowing a one party monopoly in Annapolis for nearly 5 decades is how the hard working citizens of Maryland get screwed. Sadly most of them are screwing themselves by just voting for the same people or same party time and time again without actually holding them accountable for their actions and lack of leadership.

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DangItAll

1:15 am on Friday, July 13, 2012

Certainly privatization played a role in getting to this endgame, although I grant that 'regulatory capture' may be a factor here... look it up, it's not a "liberal democrat" phenomenon, it's an equal-opportunity factor making appropriate regulation problematic, no matter the party, around the world... it's not like conservatives aren't equally (or more, where they are in power!) in the pocket of the major funders!!!

Sadly, most seem to be swayed by the outrage flavor-of-the-day, rather than focusing on understanding the subtleties of the complicated system of "representation" when the **virtually unlimited financial reserves** of corporate interests are unleashed on a well-intentioned but naive public.

So much easier and "sound bitey" to rail on the "liberal democrats" instead, eh?

Let's face it, PEPCO has a crappy infrastructure, and has been scapegoating trees, telling us that it's the trees that are the problem, and spending money to hack the trees that are unfortunate enough to be near PEPCO wires... BS!

Balancing intake of funds from billing seems reasonable, but penalizing customers for Pepco's outages seems outrageous, even if extreme weather ('act of God') conditions are involved. Frankly, Pepco ought to be fined for letting their infrastructure decline to the present state, yielding discounts for the victims ("customers").

Harumph!

Cindy S

12:14 pm on Wednesday, July 11, 2012

Hmmm - can I submit invoices to Pepco for several hundred dollars of food I had to toss - as well as restaurant meals for a week because we couldn't cook?

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A. Valencia Erb

12:15 pm on Wednesday, July 11, 2012

I am outraged by this. We were without power for SIX days. I'd like to send them my restaurant tabs for breakfasts, lunches and dinners for all our the meals we had to go in search of while our power was out and our whopping grocery bill for having to replace the food that was spoiled.

This is when our lawmakers need to step and in just do something and not wait for us to go stark-raving mad. And while they're meeting, they need to put the kabosh on Pepco's request to increase their rates. That's like adding salt and vinegar to the wound.

Pepco is the devil and disgusting.

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Tracey Hodge

12:20 pm on Wednesday, July 11, 2012

So let me get this straight.....WE can't get any type of recourse because Pepco/BGE can claim it as an act of nature. But they can claim recourse for that very act that cost the CUSTOMERS money and time??? What a crock.

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A. Valencia Erb

12:21 pm on Wednesday, July 11, 2012

Tell the County Executive, Ike Leggett. He was on 99.1 last week giving Pepco a beating over the power restoration debacle. ike.leggett@montgomerycountymd.gov

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Marla Jackson

12:27 pm on Wednesday, July 11, 2012

Ike may have given a verbal beating but I bet he took campaign contributions from them.

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Helen Wolk

12:31 pm on Wednesday, July 11, 2012

Any elected official who doesn't act to stop this right away is anti-citizen. They should be recalled if possible.

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Barbara J. Runion

2:42 pm on Wednesday, July 11, 2012

The politicians in Prince George's County have left their constituents in the dark by not holding Pepco accountable regarding its overall poor performance during this and many other storms in the past.

Debra Weston

12:36 pm on Wednesday, July 11, 2012

We had to deal with the storm (thanks Mother Nature!!)
We had to deal with the heat & humidity (thanks Mother Nature!!)
We had to deal with the timeframe it took for on repairs and getting the power back (thanks PEPCO & BGE!!)
We had to deal with emptying refrigerator/freezers and throw away hundreds of dollars worth of food (thanks PEPCO & BGE!!)
We had to deal with repurchasing and restocking refrigerator/freezers with new food at exorbitant prices (thanks all grocers!!)
Now we have to deal with and pay more than we already do for power from our electricity providers (thanks PEPCO & BGE!!)
I am just about ready for solar power to be my only source of power into my home and quit the use of other forms of power, their companies and their control on my life and needs!!!

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jag

12:36 pm on Wednesday, July 11, 2012

Another reason why they have no incentive to provide reliable service. I seriously hope the county and state smack the crap out of them and laugh heartily during PEPCO's hearing re: their proposed rate increase.

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Commentous

12:37 pm on Wednesday, July 11, 2012

We pay Pepco for electricity, we pay taxes for the County cleanup and officers during the outage, we pay the fireworks-related contractors for their contracts even though the fireworks had to be cancelled (not just postponed), AND we pay Pepco for not making money on us when we had no power. Oh, and Pepco stock is near a 2-year high and delivers a nice dividend to shareholders.

Am I missing something?

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jah

1:14 pm on Wednesday, July 11, 2012

Nope, that's why I started to buy PEPCO stock after living here for 3 years and suffering through repeated outages and seeing them fines in such a minor league way. I figure that's the only way I can win anything in this completely lop-sided game.

Megan Johnston

12:38 pm on Wednesday, July 11, 2012

I think that charging consumers for services they didn't receive is inappropriate and unfair. All suffer when nature intervenes dramatically and all share in those challenges; I don't think that one interest group should not be enabled to make up their damages by charging another interested group which was harmed by the same event. When it comes to sever weather, we are all in it together.

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Henriot St. Gerard

12:40 pm on Wednesday, July 11, 2012

so in pepco's warped logic it wasnt residents who were inconvenienced by power outage it was the company. in turn, we all must pay cause god forbid pepco was unable to generate revenue during the storm because the storm was somehow our fault and pepco had to clean up our mess for wanting a "severe" storm to hit us.

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CateB

12:40 pm on Wednesday, July 11, 2012

' ”From 2008 to 2010, Pepco CEO Joe Rigby earned $8.8 million and Pepco top officers earned more than $22 million. During that same period, Pepco reported $882 million in profits.." In the last four years, Pepco has actually paid a negative 39.5 percent corporate tax rate, meaning it received millions in tax subsidies from the government."

Turn your outrage into action. Use the link above to contact the Maryland Public Service Commission and let them know that there will be a voter led referendum on the Bill Stabilization Adjustment "law." '

I think EVERYONE of these power company customers needs to speak up, write your representatives, and use information (like above, if true), and tell them the customers are outraged, and demand COMMON SENSE legislation. I will be doing it. I hope you all do, too.

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JustABill

7:01 pm on Wednesday, July 11, 2012

Gee CateB you sure sound exactly like BowieXpress.

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CateB

8:13 am on Thursday, July 12, 2012

Gee JustABill - that is WHY I quoted it, and referenced it in my note: "...use information (like above, if true)..." Reinforce the message, is what I think it is called. Meaning, if that info is true, and I will do my research, I will include that data in a letter to our representatives. I'm simply encouraging all who are outraged, to put their thoughts and perspecitves, with facts when you can get them, in writing. And let those who make decisions on our behalf KNOW how outrageous and illogical some of the laws and practices that are seem to everyone looking at them. So many practices put in place do not seem to be well thought out. BETTER?

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JustABill

10:07 am on Thursday, July 12, 2012

Ahh ... I missed the little ' and " so I apologize for the accusation but I think there are far better financial statistics out there worth quoting to prove your point. After all you cannot actually pay a negative amount in tax.

I do however applaud you for your intent in getting people to become active in complaining to their legislators and heads of these companies. However, the real effort needed is voting out the massive incumbency of state senators like Mike Miller and and delegates such as Mike Busch in the General Assembly in 2014. Many of them are the ones who got us in this mess to begin with and they clearly do not listen to their constituency when deciding how to vote on state wide legislation much less local legislation because if they did there are many times their votes should have been different.

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CateB

1:32 pm on Thursday, July 12, 2012

Yes, JustABill, from your previous posts, I think we are squarely on the same page. I agree - voting matters, holding elected officials accountable matters, making sure they listen to the constituency should matter. And I am happy to gather accurate facts to illustrate how illogical and unfair some of their decisions are, from a variety of sources. Representatives in government are paid BY US to do a job. That job should be to make SMART decisions. Not just decisions that make profitable companies and IMO overpaid executives more wealthy on the backs of honest, working people who are being over taxed /overcharged - especially in this circumstance it seems, where the big profitable power monopoly insures they make their money, by CHARGING customers more when their power goes OUT. It sounds too ludicrous to even type let alone believe. But if we do not channel our anger at that absurdity into reform, we are just wasting our breath. And they only ways I know to enact reform are to 1. run for office 2. speak out and often, based on facts not hyperbole, and/or 3. threaten to take away the vote from the incumbent as soon as he/she is up for re-election, if they are making decisions you do not agree with.. If others have additional suggestions on how we can make the elected officials accountable and insure they make fair and smart decisions, I am genuinely open to suggestion.

ED

12:41 pm on Wednesday, July 11, 2012

I don't know how much more "energy efficient" a resident can be than to not use electrical power for five days. According to Pepco, being "energy efficient" helps "drive down electricity supply costs", but Maryland states that if Pepco is not making enough money, they can collect more from the very people that have no supply. I just wish the gasoline companies were considered "utilities" and would have to reduce rates for the windfall they received from the residents that were lucky enough to have generators.

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Carleton MacDonald

12:46 pm on Wednesday, July 11, 2012

Can I bill them for the $28.00 a day I had to spend on gas for the generator for the six days it took to get power restored?

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CM

1:01 pm on Wednesday, July 11, 2012

The law allowing this needs to be changed as soon as possible. It's ridiculous to be paying utilities for something that one does not get! Also, the executives of the electric companies should be required to reduce their income whenever outages like this happen and they should NOT be getting any bonuses this year or any year when the electric service is out. It's too bad that the lawmakers let the Public Service Commission even put something like this into the rate structure! Will PEPCO and BGE compensate folks who lost food? I'm sure that won't happen. Why isn't something like this in the law? I hope the lawmakers change the law so that companies aren't compensated when they don't provide the service that they should!

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Susan

1:02 pm on Wednesday, July 11, 2012

As consumers we are left with the bill for gas, etc. to compensate for the power not being on due to storms and we are supposed to pay the electric company as well?? Who in the hell decided this is right? Of course, it is just another way to stick it to the working class. We have no money but have higher taxes and they want us to buy more energy efficient cars and appliances. WITH WHAT MONEY?????

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Woodside Park Bob

1:03 pm on Wednesday, July 11, 2012

This is outrageous. They make their profit whether they provide power or not. So there is absolutely no financial incentive for them to restore power quickly. Instead of this, they should be required to rebate to customers 1/365th of their last year's profits for every day there is a substantial outage.

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jah

1:18 pm on Wednesday, July 11, 2012

And so what's difference about this public utility scam? Deregulation is great and their MPUC cronies are going to make sure that the knife in us is turned. We bail out the S&Ls, the Enrons, the Barclay Banks, the hedge funds. I LOVE supporting the 1% and its robber barrons! This is awesome! More please!

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Cory Young

1:23 pm on Wednesday, July 11, 2012

This is awful. We are the ones that suffered in the heat and lost food because of the power outage. I do not understand why some type of insurance is not being used on their end. They should be able to submit a claim for the loss. It was an "Act of Nature".

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Tom Termini

1:23 pm on Wednesday, July 11, 2012

Related -- if you install solar or other supplemental power systems in our home, you can not sell power back to Pepco if you are net producer (make more electricity than ou use). Unlike many other jurisdictions. This is a major reason recovery costs for investment in green or other alternate power solutions have such a long payback period in Maryland.

The government should re-evaluate all the perks Pepco receives -- and incentivize them to bury lines, maintain repair crews on staff, etc.

Read more at http://intellectualcapitalist.blogspot.com/2012/07/want-power-when-it-storms-here-some.html

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Captain Cook

1:36 pm on Wednesday, July 11, 2012

Liberal DEMS love this and made the law - you fools.

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werzmecoffee

1:47 pm on Wednesday, July 11, 2012

Will Pepco accept moldy cheese, curdled milk and melted ice cream as payment?

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ED

1:59 pm on Wednesday, July 11, 2012

Even if they won't, mail it to them anyway.

Jessica Warren

2:10 pm on Wednesday, July 11, 2012

Why should we have to pay a fee. Its not our fault the power went out. If Pepco would just bury their lines we would not have this problem. Since Pepco is charging a fee for the outage, I should be sending them a bill for all the food I lost in my fridge.

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David Becker

2:24 pm on Wednesday, July 11, 2012

A long term plan should be put in place to have all of these wires and cables placed under ground; where winds and trees can't shear them.

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Barbara J. Runion

2:32 pm on Wednesday, July 11, 2012

Does this mean that Pepco will compensate us for the $350.00 worth of Omaha Steaks, Prime Rib Slices and Salmon Filets in our freezer and all perishable foods and condiments in the refrigerator we had to throw out due to spoilage because of the 3-day power outage in Hyattsville? Hardly.

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Dee Rogers

2:46 pm on Wednesday, July 11, 2012

BG+E left a downed power line (yes a live line folks) across my sisters driveway thereby holding hosting her, her husband and my car for 6 days.....SIX DAYS! They were rude and inconsiderate on the phone. I finally had to take a taxi home - FTLOG folks they already make plenty of $$$.

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Neighbor

2:50 pm on Wednesday, July 11, 2012

You know what the French would do in a situation like this.

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Bev

3:00 pm on Wednesday, July 11, 2012

I am truly outraged that the public, the victim's of PEPCO's poor management decisions over the years are being asked to reimburse PEPCO for their mismanaging their resources. I cringe every time I pass a PEPCO-mutilated tree in the name of better service we have yet to get! This travesty needs to be fixed.

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County2Lane

3:11 pm on Wednesday, July 11, 2012

For all you folks who blame this on lefty politics, try again. Maryland's law followed New Jersey and the great bastion of progressive politics: Idaho.

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Obamalover

3:31 pm on Wednesday, July 11, 2012

the law is the law and we should just support them. they provide us with the means to enjoy A/C. c'mon people be thankful that we even have electricity

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Rick

3:34 pm on Wednesday, July 11, 2012

I sent PEPCO an expense report, complete with receipts, for the gas and oil that I used for my generator during the five days their service was not provided. I expect they will return it, "addressee unknown."

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Concerned Citizen of Laurel

3:39 pm on Wednesday, July 11, 2012

IT EASY! Get off your backside and contact the Maryland Public Service Commission and let them know that there will be a voter led referendum on the Bill Stabilization Adjustment "law."

Find all that voted in favor of this law and say GOODBYE to them in the next election!

Lets start with OWE MALLEY - MILLER & BUSCH.

There rein of terror & incompetence in this state has gone on for way to long!

The TRUE 3 Stooges!

Then DEMAND the resigination of both presidents from Pepco & BGE!

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Pamela Jones

3:55 pm on Wednesday, July 11, 2012

I've only skimmed the comments so maybe someone else has said this. I think it's fair to raise our rates. Pepco can't prepare for all conditions of every kind of power outage. It's not humanly possible. So if we have a lot of extreme weather -- extreme anything: cold, snow, ice, heat, winds, rain, hail -- it will take a lot of time to fix the problems. Call me naive, but I accept and understand rate increases. [And I'll hope for, but not expect, faster service after the rate increases.]

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Joe Thomas

4:34 pm on Wednesday, July 11, 2012

Finally the voice of reason.

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Tom Termini

4:46 pm on Wednesday, July 11, 2012

The problem is, the cost of electricity is not a function of overhead + investment + cost of goods sold + reasonable profit margin. The cost is a made-up number, and we get no view into the operations of the organization. I, for one, would like to have options on where I get my power from. A little competition would go a long way. Read my blog post (above) about alternatives we should have access to.

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JustABill

7:56 pm on Wednesday, July 11, 2012

How is this the voice of reason. The rates BGE and PEPCO charge that are approved by the PSC already include allowances for maintenance and repairs including repairs for major outages caused by storms and other unexpected catastrophic events. It is beyond naive to simply accept and understand rate increases when you have no concept of the basis for the current rate.
It still somehow amazes me how short the memories are of the citizens of Maryland. How has everyone completely forgotten the 72% rate hike that was all the buzz in 2006 and the great Gov. O'Malley promised he would stop to get himself elected only to forget that promise? Not to mention the two other rate hikes approved by Gov. O'Malley since he has been in office.

Also PEPCO & BGE can and should be prepared for all conditions that can cause a power outage. That's what contingency plans are for after all and that is part of what you pay for in your already high enough rates.

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Concerned Citizen of Laurel

5:12 pm on Thursday, July 12, 2012

Hey Pamela, Turn on the light for you are still in the DARK! Oh, sorry, do you have power yet? Maybe you can just pick up the tab for all of us!

John

4:26 pm on Wednesday, July 11, 2012

I thought the Maryland legislature passed a law, which would fine PEPCO for these kind of unforgiveable outages. I guess the politicians pulled a fast one, on me. This is unbelieveable -- well, I guess with politicians and monopolies, it isn't. It's the same old rip-off we've been getting. We need to get rid of all of them!!!

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A. Valencia Erb

4:29 pm on Wednesday, July 11, 2012

The law says Pepco can stick it to us by charging us for bill stabilization. Hey Pepco, laws can be repealed. Stay on our lawmakers. Earlier this morning, I took my own advice and emailed Ike Leggett my thoughts. I see he and others have sent Pepco a demand letter, speaking on our behalves. Glad to see he's doing something, but we must stay on them. And as for Pepco waiting it out until our anger subsides before they raise the rates, let's not take this sitting down. I know I won't. Start the email campaigns. It's great we're all sharing our sentiments here, but we need to stuff Pepco's email inbox with our grievances.

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Bob Hydorn

4:38 pm on Wednesday, July 11, 2012

In my opinion, PEPCO should be owned by the county government(s) and run like WSSC. It's not perfect but I'd bet we'd get better service and could start a project to get lines buried underground. If Montgomery County is going to become more urbanized, then we need to lay the infrastructure for it. Electricity, like water, is too important to daily life to be entrusted to a profit-making entity whose only obligation is to its shareholders. I recall all this deregulation started with Bob Erlich's administration. The deal was that through deregulation we'd get competition and lower prices, which would benefit customers. Didn't work that way. We get lousy service and a crazy law that let’s PEPCO bill for lost storm income. Let’s all work together to stop this insanity.

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Marla Jackson

6:07 pm on Wednesday, July 11, 2012

WSSC is a mess! You need to do research on that one!

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Pamela Jones

8:11 pm on Wednesday, July 11, 2012

I agree: "electricity, like water, is too important ...to be entrusted to a profit-making entity...."

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Rocky

10:06 pm on Wednesday, July 11, 2012

Do you really want Roger Berliner running your power company ? You've got to be crazy.

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JustABill

4:22 pm on Thursday, July 12, 2012

No Bob all this deregulation started long before Governor Ehrlich was in office. The deregulation legislation was passed by the Democrat controlled General Assembly and signed by a Democrat, Governor Glendening in 1997 because it took affect 10 years later in 2007 under the watch of another Democrat, Governor O'Malley who promised to stop the rate increase and reign in the deregulation. He failed at that promise just as he has failed in so many other ways.

Robert Curry

5:55 pm on Wednesday, July 11, 2012

How about paying ME the $70.00 per day it cost to run my generator, to replace the abscent PEPCO power? Or, along "energy efficiency" guidlines, rewarding me with a LOWER RATE, for using LESS PEPCO POWER last month? Only "big busioness" gets to "Have their cake, and eat it too!"---Little guys get screwed!

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Mary A. Lehman

7:23 pm on Wednesday, July 11, 2012

This seems like a perverse disincentive for the electric utilities to restore power as quickly as possible. I have to wonder who the Public Service Commission is looking out for -- it doesn't appear to be ratepayers. What a slap in the face. Citizens need to contact state lawmakers and challenge the wisdom of this so-called "bill stabilization" policy.

Mary A. Lehman
Prince George's County Councilwoman
District 1

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mr.longpants

8:50 pm on Wednesday, July 11, 2012

Unless Pepco/BGE has applied for and received a waiver (which doesn't seem to be
the case) of the PSC "prohibition of decoupling revenue for Major Storms
pursuant to the requirements and limitation" articulated in Order No. 84653
dated Jan. 25, 2012 -- they cannot LEGALLY recoup and are PROHIBITED from
collecting anything from customers:

http://webapp.psc.state.md.us/Intranet/Casenum/NewIndex3_VOpenFile.cfm?ServerFil\
ePath=C:\Casenum\9200-9299\9257\\17.pdf

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Bowie20715

9:38 pm on Wednesday, July 11, 2012

Are you people really getting your panties in a wad over less than a buck?

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Tracey Hodge

6:23 pm on Thursday, July 12, 2012

times how many millions of customers?

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Nancy Shampo

10:17 am on Monday, July 16, 2012

Is it really so difficult to understand that there really is such a think as :"the straw that broke the camel's back"? People who were without power for days on end with no relief, facing throwing away hundreds of dollars in rotting food, object to anything else being inflected upon them. P.S. panties, really, try tighty whiteys.

Brent Fraser

8:01 am on Thursday, July 12, 2012

I can tell you that if I were Pepco, I wouldn't be in any hurry to restore power. Why do that when I'm going to get paid anyway?

The bill isn't all bad. There are good things about bill stabilization. Unfortunately, they seem to have left out any provision for acceptable levels of service. They need something like decreasing the "profit" threshold for each hour power is out. If the power is out for 5 days, that decrease might be so much that you would see them being over-profit and having to give a discount.

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Lance

10:51 am on Thursday, July 12, 2012

If we are to be charged then we should have a say so in the decision making of the how the overall company is being run. For starters it would make more sense to put ALL utilities underground !! It is not only greener, it is cheaper and makes more sense..
EVOLVE please!! This is the 21 Century

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Jennifer Morris

11:47 am on Thursday, July 12, 2012

They better not bring up the unusual nature of the storm again, because the outages are not unusual at all.

Bury the lines already, how much have outages cost them over the last couple of decades? During the ice storm in '99 we lost power for a week. It was 20 degrees *inside* towards the end.

Power goes out whenever someone sneezes. (ok, I exagerate, but not by much)

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Peter Kulkosky

1:29 pm on Thursday, July 12, 2012

The customers need a class action suit against the Pepco-Government conspiracy,
which is unconstitutional, insulting, a bad example for other areas and unethical among other things. Pepco's rating will go down as a result.

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Concerned Citizen of Laurel

5:08 pm on Thursday, July 12, 2012

Well now, its official. Next month a fee will be placed on your bill for stabilization. Follow me and do the same, pay your bill, but NOT the added fee in protest. What they going to do, turn off the State of Maryland and the District! We the People should demand the resignation of the Presidents of both BGE and Pepco! A true audit of Pepco would show profits, bonus payments, buyouts, and huge sums paid to retired EXEC's! Trust me, I KNOW first hand! Where have you seen a REAL Pepco crew or truck? You don't, for the staff has been reduced to nothing and cheap labor / contractors brought in! Lets ask Graham to disclose his salary and compensation when he retires! I wouldnt let this guy operate a kids train set!
If any of US did the same at our place of employment, I'm sure we wouldnt be working there anymore! What makes them any different!

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DangItAll

1:34 am on Friday, July 13, 2012

Privatization played a role in getting to this endgame, though I grant that 'regulatory capture' may be a factor... look it up, it's not a "liberal democrat" phenomenon, it's an equal-opportunity factor making appropriate regulation problematic, wherever in the world... it's not like conservatives aren't equally (or more, where in power!) in the pocket of the major funders!!!

And now those major funders are truly unleashed (e.g., Citizens United), all bets are off. We'll probably just hear of a subset where information was accidentally disclosed on an otherwise 'discrete' play...

Sadly, most are swayed by the outrage flavor-of-the-day, not focusing on understanding the subtleties of the complicated system of "representation" when the **virtually unlimited financial reserves** of corporate interests are unleashed on a well-intentioned but naive public.

So much easier and "sound bitey" to rail on the "liberal democrats" instead, eh?

Feankly, Pepco has a crappy infrastructure, and has been scapegoating trees, telling us that it's the trees that are the problem, and spending money to hack the trees that are unfortunate enough to be near Pepco wires... BS!

Balancing funds intake from billing seems reasonable, but penalizing customers for Pepco's outages seems outrageous, even if extreme weather ('act of God') conditions are involved. Frankly, Pepco ought to be fined for letting the infrastructure get to this state, yielding discounts for the "customers!"

Harumph!

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Michael Smith

1:43 pm on Saturday, July 14, 2012

http://www.councilmemberriemer.org/2011/01/pepcos-shocking-profits.html

Where have we seen this before?

Facts:

Pepco makes over $100 MILLION in Profits a year.

Pepco is the most hated company in America

Pepco spends less than ANY other power company on infrastructure, repairs, and equipment.

Pepco has more outages than ANY other power company in the history of the US.

Pepco increases rates to pay for infrastructure.

All of this boils down to corporate executives lining their pockets and those of their families and leaving Maryland out to dry.

Let us face the reality, which is that Pepco takes those rate increases, your incredibly high utilities payments, and then funnels most of it into pure profits.

The reality is that Pepco is exactly what's wrong with effective monopolies, and their executives are scum.

I'd love to see a personal statement admitting as much by the executives in control of Pepco, they need a good public shaming and need to spend all that profit back into the community they've sucked dry.
Pepco CEO Joseph Rigby needs to be dragged through the mud and any executives of Pepco AND their families need to publicly shame them into doing the right thing.
I know it's wishful thinking but the reality is that Maryland is getting taken for a ride and Pepco is posting record profits.
The Financial reports speak for themselves, over 100 million a year in PROFITS and they want rate increases. Stuff like this is what causes riots.

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Gretchen Ward Waller

5:08 pm on Saturday, July 21, 2012

Pepco has the nerve to propose a 4% rate increase across the board! That is more than a damn dollar Bowie20715!

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