The Maryland Public Service Commission denied the bulk of Pepco’s rate increase request Friday, rejecting $50 million of the $68 million the utility sought.
The PSC did approve $18.1 million of the request, which was required to meet the legal and statutory mandates set by law to provide safe and reliable service, according to a news release from the commission.
“Given the constraints of the law, I think the commission disallowed everything it could under the law,” Council President Roger Berliner said Friday afternoon.
“While no one wants to give Pepco a penny, the commission found it had legal obligation to give them a few dollars,” said Berliner (D-Dist. 1) of Bethesda.
The commission reduced the allowed return to Pepco’s shareholders to 9.31 percent, a reduction from its previously allowed return of 9.83% and an even further reduction of their requested return of 10.75 percent.
“Overall, the Commission found that Pepco’s application lacked the evidence required to substantiate its request,” the release said. The PSC also considered the utility's long history of substandard performance and its responsibility to invest in improving its infrastructure.
The full 162 pages of Order No. 85028 can be found on the PSC’s website at www.psc.state.md.us.