Maryland’s Public Service Commission has approved a $1 monthly increase for Pepco’s residential customers. The Gazette reports:
The rate increase of 2.3 percent overall — with residential customers paying 3.1 percent more — is expected to allow the utility to raise about $7.77 million over the next year. Pepco initially requested rate changes to raise more than $40 million.
The PSC rejected a proposal to raise the minimum charge for electric service to homes and small businesses, in favor of rate changes that would raise more revenue from heavy electricity use — thereby encouraging conservation while reducing the impact on smaller accounts.
In its decision Friday, the commission said it granted the increase, effective July 29, to ensure that Pepco can provide “safe and reliable service, while being given the opportunity to earn a fair return on its investment.”
Many of the changes the PSC agreed to were backed by the Office of the People’s Counsel, which urged the PSC to limit Pepco’s rate increase to what would be needed to raise another $5 million in revenue.