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Is Pepco's Proposed Rate Hike Warranted?

The rate increase would raise a typical Maryland resident's monthly electricity bill by about $5.50.

 

Those not happy with the prospect of increased Pepco rates may want to circle Sunday, April 22 on their calendars.

In response to Pepco's request last December for a $60 million-plus increase in its rates from Maryland customers, AARP will hold a town hall meeting at the on April 22, from 1 to 3 p.m., "to mobilize support to stop Pepco’s utility rate hike," according to an AARP press release.

“What Pepco is asking from consumers is ridiculous,” said AARP Maryland Associate State Director of Advocacy Tammy Bresnahan.  

The rate increase would "up a typical [Maryland] residential customer’s monthly bill by about $5.50," starting in the summer, The Washington Post reported last winter.

The increased rates would fund measures to increase the quality and efficiency of Pepco's service, Thomas Graham, Pepco regional president, told WTOP last winter.

Yet, "Pepco’s looking for higher rates while its customers are still looking for better service," Bresnahan added.

Last year, Pepco was fined $1 million "for failing to maintain its distribution system and inability to provide reliable electric service," .

"During Sunday’s town hall, AARP Maryland will share information on the rate case, what consumers can do to make their voices heard and take questions from participants," according to the AARP press release.

The meeting is designed to help Pepco customers understand that they "can stand up for themselves" in the face of an unwelcome rate change, according to Bresnahan comments reported by Public News Service.

What do you think? Do you think the rate increase is warranted?

art slesinger April 20, 2012 at 02:32 PM
It would be premature to grant PEPCO its requested rate increase. Some of that is directed at recovering cost from its own "imprudence" as confirmed by the PSC fine. PSC promised to make future rate increases dependent on a better level of service. Bottom line, it is too early to tell and the weather has not tested the PEPCO investment.

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