Pepco Seeks Recovery for Spend on Essential Projects to Enhance and Modernize the Maryland Power Grid

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WASHINGTON, D.C. (January 2, 2018) – Pepco today filed a request with the Maryland Public Service Commission (PSC) for approval to recover approximately $41.4 million for work done in 2017 to enhance electric reliability, install modern equipment and meet the expectations of our customers. 

Based on today’s request, the typical Pepco residential customer in Maryland using 812 kilowatt hours per month would see a monthly bill increase of 4.18 percent increase, or about $5.14. 

Our customers expect us to provide safe and reliable electric service at an affordable price, and we are focused every day on meeting these expectations,” said Donna Cooper, Pepco region president.  “We are benefitting from implementing the best practices from other Exelon utilities, and we are passing along those benefits to our customers in the form of more reliable service and more efficient operations.”

Pepco Maryland customers are seeing benefits of the company’s enhanced spend in the local power grid. In 2017, Pepco Maryland customers experienced the best reliability in a decade. Pepco has embraced the challenge of improving its systemwide reliability performance to meet more stringent standards set by the PSC and has made the appropriate investments. Pepco spent approximately $222.9 million in 2017 to maintain and improve the distribution system’s safety and reliability and improve customer service through projects such as replacing and improving aging equipment and installing advanced equipment to automatically identify and isolate issues and automatically restore service to customers.

As a result of the company’s work, over the period of January 1, 2012 through December 31, 2017, Pepco’s Maryland customers have experienced a 46 percent reduction in average outage frequency and a 61 percent reduction in average outage duration.

Even with this proposed rate request, the typical residential customer bill would still be about 19 percent lower than it was in 2011, thanks to lower electricity supply costs, operating efficiencies and energy efficiency programs. Customers also are seeing quicker storm restorations because of the availability of additional utility resources.

Electric system projects in 2017 have included:

  • Upgrading 39 feeders
  • Replacing or installing 89 miles of underground cable
  • Installing advanced reclosers devices, most of which will eventually be included in automatic sectionalization and restoration schemes designed to further improve reliability to our customers

In addition to providing better service, these infrastructure investments help drive economic development and job creation in the regional and local economies. Pepco and the PHI Service Company directly employ approximately 740 people in Maryland and are creating new jobs. Pepco serves more than 566,000 customers in Maryland.

Pepco’s purchase of goods and services from diverse certified suppliers topped $143 million through November 2017, and Pepco was named Corporation of the Year by the Capital Region Minority Supplier Diversity Council for its record in the District of Columbia and Maryland. Pepco also is enhancing workforce development — including a partnership with Prince George’s County to create a workforce development and training initiative.

Tax-reform legislation will result in meaningfully lower tax costs for Pepco, and thus a lower cost of service that we will pass along to our customers in the form of rate reductions or offsets to investments we are making or other costs we are incurring for the benefit of customers. We look forward to providing more detail on customer benefits once a full analysis of the legislation is completed.

Pepco customers with questions regarding billing or this rate request can call the Pepco Customer Care Center at 202-833-7500. For additional information about energy efficiency and energy assistance programs, customers can visit the Efficiency Rebates, Incentives and Programs section of our website.

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