Pepco Wants to Raise Rates in DC

Pepco has asked for the "largest rate increase in decades" in a filing with the Public Service Commission.

The request for an $85.5 million rate increase comes just three months after PSC approved the Pepco-Exelon merger. D.C. residents' power bills would see a 5.25 percent spike every month if the commission approves the increase.

WTOP reports a spokesperson for Pepco said the request appears big but, "If you look at it over three years, it’s 1.5 percent per year, which is barely what inflation is. It’s actual very reasonable.”

In April, D.C. residents received about at $55 credit on their bill as part of the merger, essentially covering the cost of the rate increase.

The Office of the People's Counsel released a statement saying it will be "vigilant" in examining Pepco's request and ensure any rate increase is based "only on the expenses necessary to keep the lights on and not those associated with Exelon's lengthy journey to merge with Pepco."

D.C. leaders, including Mayor Muriel Bowswer, and civic groups had opposed the merger, saying they were worried about the possibility of higher rates set by a large, out-of-state corporation.

Councilmember Mary Cheh and Councilmember Elissa Silverman released the following joint statement Thursday in response to Pepco’s request:

“No sooner does the ink dry on the merger then Pepco issues a request for District residents to pay the largest single rate increase in decades. We predicted that this would happen and now it has come to pass in the District as it has in other jurisdictions bound to Exelon. We can only hope that the Public Service Commission will push back against this exorbitant request and limit it to the barest increase it can justify. The Office of the People’s Counsel’s new Merger Compliance Team should act as a vigilant watchdog. This recent action underscores the need to study a public-power option and pursue sustainable, alternative energy sources in the District of Columbia.”

Christina Harper, the interim communications director for Bowser, released this statement:

"The Public Service Commission is charged with evaluating utility rate increases. They should limit the Pepco/Exelon request to the mere requirements of the law. And they must apply the $25.4 million that Mayor Bowser negotiated, and they redirected, toward shielding DC residential ratepayers from any increase for 3 years. To do otherwise would be to the detriment of DC residents."

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