AARP Appeals Pepco Surcharge

By Patch Editor Whitney Teal

Pepco is facing an increasing number of challenges to its rate hikes. AARP announced Wednesday that it had filed an appeal in Baltimore City Circuit Court objecting to a surcharge increase recently approved by Maryland regulators.

Maryland’s Public Service Commission recently granted Pepco $27.9 million of a $60.8 million rate increase request. Customers in Montgomery and Prince George’s counties would see a slightly higher monthly bill due to the increase and a 6-cent surcharge that would help Pepco pay for fixing the worst power lines in the region.

Pepco is the first utility in the state to be allowed to charge for grid improvements before the work is done, The Gazette reported.

"This move by the PSC overturns over a century of precedent," AARP Maryland State Director Hank Greenberg said in a statement. "As recently as one year ago, the PSC found that adding such surcharges to customer’s bills [was] unwarranted and unwise. What has changed?"

Montgomery County Executive Isiah Leggett announced last week that the county attorney will file a similar appeal in Montgomery County Circuit Court in protest of the surcharge.

"The Public Service Commission’s decision to allow Pepco, for the first time, to charge customers a 'Grid Resiliency Charge' every month is troubling. Even if limited to certain costs just now, it is a terrible precedent," Leggett (D) said in the statement.

"Just last week, two other utility companies announced that they will now ask for an additional monthly surcharge to be imposed against their customers, including companies that are reaping exorbitant profits," Greenberg said. "Consumers are bearing the financial brunt without seeing improvements in service."