WASHINGTON — Maryland regulators have rejected a Pepco rate change that would have increased residential customer rates as much as 10 percent agreeing to a smaller increase instead.
The Maryland Public Service Commission approved the partial rate increase for Pepco on Tuesday. The distribution rate change will increase the average residential bill about $7 a month, an increase of almost 5 percent.
The commission also denied the power company’s request to extend a surcharge for its grid resiliency program, which will be eliminated from customers’ bills. The charge was added to help the utility improve reliability and safety following the 2012 Derecho that left much of the D.C. regions without power – some areas for days.
Pepco had sought to increase bills for residential customers about $15.80 a month, which would have generated about $127 million in additional revenue for the power company.
Pepco filed for the rate increase a month after completing a merger with Chicago-based Exelon earlier this year.
The new rates, which will create $52.5 million in revenue for Pepco, are effective immediately.
The increase will help Pepco recoup some of the costs to install smart meters and to improve the power company’s reliability.