Gazette.Net: Utilities reined in on outage charges
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Electric utilities will be limited in what they can charge Maryland customers to recoup company losses during large, long outages under an order issued this week by the Public Service Commission.

A panel of three commissioners found that the “bill stabilization adjustment” that the commission approved for Pepco, Delmarva Power and Baltimore Gas and Electric in 2007 and for Southern Maryland Electric Cooperative in 2010 did not serve as appropriate incentives to maintain reliable service.

Under the order, issued Wednesday, the utilities would be able to charge ratepayers based on no more than the first 24 hours during which 10 percent or 100,000 of the ratepayers are without power because of the effects of a major storm.

The utilities will be allowed to request a waiver based on evidence that reliability problems were not the cause of the outages.

According to data the PSC collected and included in the order, Pepco collected almost $2.2 million through the adjustment charge during four major storm-related outages from July 2010 through January 2011, making the utility the largest recent beneficiary.

In an emailed comment, Pepco officials said the company did not oppose the Bill Stabilization Adjustment revision that the PSC adopted in its order Wednesday.

Pepco operates with similar provisions in the District of Columbia, utility officials said.

mhyslop@gazette.net