State regulators cut Potomac Edison’s proposed rate hike nearly in half
BALTIMORE – Potomac Edison customers will not be burdened with the utility's proposed 42 percent rate hike under a Public Service Commission order this week that referenced many points the Office of People’s Counsel raised in the case. The Commission approved a $28.0 million rate increase rather than the substantially higher requested increase of $50.4 million, agreeing with OPC’s appeal of several aspects of an earlier administrative judge’s proposed decision.
“Overall, we are pleased with the Commission’s decision,” Maryland People’s Counsel David S. Lapp said. “It appropriately rejects Potomac Edison’s proposed rate increase, denies the utility’s effort for special cost recovery for reliability investments, and it reverses important aspects of the proposed decision adverse to residential utility customers.”
OPC appealed the proposed order’s treatment of several issues, including Potomac Edison’s proposed refund related to the bribery scandal of Potomac Edison’s corporate parent, FirstEnergy; charges to the utility from services provided by a FirstEnergy subsidiary; Potomac Edison’s residential customer charge; and the accounting treatment of $13.2 million in costs.
The Commission agreed with OPC on the $13.2 million accounting issue, resulting in substantial customer savings. It also agreed to OPC’s proposed monthly customer charge of $6.00 rather than the proposed decision’s $7.21 charge. In response to OPC’s request, the Commission also ordered an independent audit to review all of the charges allocated to Potomac Edison from FirstEnergy.
According to the Commission’s order, the average residential customer that purchases their kilowatt hours through Potomac Edison (and not through a retail supplier) and uses 1,000 kWh per month should expect to see a monthly bill increase of $4.84, an increase of approximately 4.9 percent.
OPC continues to evaluate the decision.
The Maryland Office of People’s Counsel is an independent state agency that represents Maryland’s residential consumers of electric, natural gas, telecommunications, private water and certain transportation matters before the Public Service Commission, federal regulatory agencies and the courts.
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