Maryland regulators have sharply scaled back a proposed electricity rate hike submitted by power company Pepco, significantly easing the financial burden on local households.
On August 29, the Maryland Public Service Commission (PSC) announced that following its review of Pepco’s rate increase application, it approved a residential average monthly bill increase limited to approximately $3.94, down from the initially requested $10.24. This rate decision took effect immediately on the day of the announcement.
Pepco had originally sought a $120 million revenue increase to ensure grid reliability and secure capital, but the PSC approved only $50.9 million—less than half of the requested amount.
In addition, accepting objections from the Maryland Office of People’s Counsel, the Maryland Energy Administration, and the Apartment and Office Building Association, the commission flatly rejected Pepco’s request to recover costs associated with its "White Flint" infrastructure project. Regulators determined that the expenditures on the project were imprudent and stated that this rejection prevented approximately $169.4 million in capital costs from being passed on to general consumers.
Maryland Governor Wes Moore welcomed the ruling, stating, "At a time when residents are struggling with high inflation, corporations should not be pursuing unwarranted profits."