OPC Today Urges the PSC to Reject $62 Million of Pepco's $82 Million Rate Increase Request

 

PRESS RELEASE

December 14, 2016

Washington, D.C. - Sandra Mattavous-Frye, People's Counsel for the District of Columbia, today filed testimony with the Public Service Commission opposing Pepco's request to raise rates for its customers in the District by more than $82 million. Mattavous-Frye said the exorbitant request should be reduced by at least $62 million.

"OPC's thorough analysis of this case reveals Pepco seeks to recover operating expenses that should not be passed on to its ratepayers, including excessive perks for executives," Mattavous-Frye said. "Moreover, Pepco is seeking unprecedented authority to recover construction costs long before the projects are completed and providing any benefit to consumers. The Company also seeks a huge increase in its rate of return."

Should the rate hike be approved as filed on June 30, 2016, the average residential bill would increase about $4 per month.

In the Pepco-Exelon merger proceeding, OPC proposed setting aside $25.6 million for a residential customer credit to protect residential customers from having to pay higher rates through 2019. OPC supports this provision, adopted by Pepco in its rate increase application that proposes creating a similar customer credit. The Commission did not approve this provision in the merger, and instead, deferred it to the next Pepco rate case.

Even as this case proceeds, OPC's Merger Compliance Team is continuing to monitor all 147 commitments contained in the merger settlement to ensure all of the benefits Pepco promised materialize.

"OPC calls on the Public Service Commission to reject this monumental filing and send a clarion signal to Pepco that unjustified revenue requests that unduly burden ratepayers will not be tolerated," said Mattavous-Frye.

In another development today, the DC Court of Appeals has set a January 23, 2017 deadline to receive briefs from OPC and other parties appealing the Pepco-Exelon merger. The court has placed the case on its April calendar.

Contact: Doxie A. McCoy, Public Information Officer

               (202) 261-1180, This email address is being protected from spambots. You need JavaScript enabled to view it.