Bates Area Civic Association

Today, DC People’s Counsel Sandra Mattavous-Frye called upon the PSC to reject $33.4 Million of Pepco’s request for an additional $42.5 Million in rates. “This case is about rates,” stated the People’s Counsel, “but it also challenges four principles crucial to consumers: Consumer Empowerment, Affordability, Reliability and Energy Efficiency and Sustainability.”

“Eleven months after the filing of this rate case, boxes and boxes of testimony and seven days of formal hearings, I am as convinced as ever that Pepco has failed to demonstrate that its request should be granted,” said Ms. Mattavous-Frye. “The reliability of Pepco’s system has not met customer or regulatory expectations and this disconnect should be reflected in the Commission’s decision,” she said.

 The record reflects that approximately 5,700 consumers filed written comments, by post card or e-mails in opposition to this rate proposal, while others testified at community hearings, attended evidentiary hearings and participated in an AARP “Telephone-Town Hall.”

Adding further insult to injury, the People’s Counsel pointed out, “If Pepco’s request in this rate case is granted in full, District consumers’ rates will have increased by $90.2 million in a four and a half year period. In its Case-in-Chief, OPC asked the Public Service Commission to sharply limit any increase and to penalize the Company for continued poor reliability.”

 Pepco’s case presents two new issues, as the Company wants to recover costs from consumers for investments in Advanced Metering Infrastructure (“AMI” or “Smart Grid”) and seeks to implement a Reliability Investment Recovery Mechanism (“RIM”) that would change how costs related to reliability improvements are recovered from consumers; “In short, Pepco seeks to recover reliability improvement costs through yet another surcharge on customer bills!” stated the People’s Counsel.

With regard to investments in AMI or Smart Grid technology, many of the benefits have yet to materialize. OPC contends there must be a linkage between cost and the actual delivery of promised benefits to consumers.

 OPC is requesting the Commission reject the RIM proposal in its entirety because it unfairly shifts economic risks from Pepco to consumers and it would substantially reduce the ability of the PSC to effectively regulate the Company. The bottom line is once again Pepco has fallen woefully short in meeting its obligation to provide DC consumers with reliable, affordable energy services. Ms. Mattavous-Frye urges the Commission to not give Pepco a pass, but to hold them accountable.

 “Both OPC and the PSC have a statutory duty to consider the economy of the District when carrying out each agency’s duties. In light of the local economy, the PSC should not ignore the impact of a rate increase on our most vulnerable citizens,” stated the People’s Counsel.

 About the Office of the People’s Counsel