Kate Ryan, wtop.com
WASHINGTON — Consumer advocates are crying foul on Pepco’s request for a $68 million rate increase. The Maryland Office of the People’s Counsel wants to make sure residents are being protected.
“We need to make sure that rates stay affordable and that Pepco is only able to recover reasonable expenses,” Paula Carmody, who serves as the People’s Counsel, says. “That is the key word: Reasonable.”
Pepco sought, and got, a rate increase last year, Carmody says. On Friday, Pepco issued a news release detailing its request for another “rate adjustment,” citing the need to cover the cost of improvements and expenses incurred while dealing with the aftermath of Hurricane Irene.
Carmody says her office will take “a very hard look” at the request.
“Are these reasonable expenses? Or is this kind of a make up scenario for reliability activities that they should have been engaged in over the last several years?” she asks.
The Office of the People’s Counsel has input on utility operations, but the Maryland Public Service Commission regulates the industry.
Pepco’s reliability record has been under scrutiny over the past year. The Maryland Public Service Commission’s review of Pepco’s performance is still pending.
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