Pepco seeking another rate hike in Maryland
Trailing an approved small rate increase by Maryland regulators, Pepco announced on Tuesday that it plans to file another rate request in the fall. Joseph M. Rigby, chief executive of parent company Pepco Holdings, bewailed a decision by state regulators last month to deny most of a rate increase sought by Pepco and sister company Delmarva Power, while speaking to investors on Tuesday on a conference call.
Rigby told investors the Maryland Public Service Commission’s (PSC) ruling prompted the company to seek another rate increase and extend a hiring freeze. “We expect to file our next round of rate cases in Maryland in the fourth quarter of this year,” Rigby said. “A fair and reasonable outcome in the next round of cases will be crucial to continue the pace of investment in Maryland.” The company sought a $68 million rate increase for its $531,000 Maryland customers, but in July the PSC granted it only $18 million. According to regulators, the increase would add $2.02 to the average residential bill, but it was modified to a lower rate of $1.89, a Pepco spokeswoman said. Regulators also reduced the company’s allowable return to shareholders to 9.31 percent from 9.83 percent.