More News

Pepco customers in Maryland would see a 2.5 percent increase in the rate they are charged for electricity distribution, under a request the utility filed last week with the state's Public Service Commission.

For example, residential customers who get standard offer service and use 1,000 kilowatt-hours per month would see an average $3.76 increase that would raise their monthly bill from $151.78 to $155.54, according to Pepco.

Customers who purchase their electricity from alternative suppliers, although it is delivered by Pepco, also would be charged the higher distribution rate.

If granted, the rate increase would take effect in July.

Pepco has about 523,900 customers in Montgomery and Prince George's counties, according to the utility.

The rate hike request, which was filed Dec. 30, is expected to raise about $40 million, said Pepco spokesman Bob Hainey. About 99 percent of that would go toward regular maintenance and operation, he said.

About $400,000 would go toward building advanced metering systems, which are planned to allow monitoring and control of use during peak demand when prices would be higher, Hainey said.

The proposed distribution rate hike may be offset by a drop in electric supply costs, expected to be roughly 2 percent, when Pepco announces those rates in June, he said.

Supply rates, based on the cost of generating electricity, account for about 75 percent of a  customer's bill.

Pepco last raised distribution rates in July 2007. That 0.56 percent increase raised about $10.6 million for the utility, Hainey said.