Pepco proposes multi-year grid modernization initiative in Maryland
Maryland energy company Pepco filed a multi-year plan with the Maryland Public Service Commission (PSC) to invest in the grid.
Pepco’s multi-year plan includes hundreds of projects to modernize and reinforce the local energy grid between 2021 and 2023. These projects seek to improve system performance through the installation of more modern equipment. It also includes a proposal to transition to more efficient smart LED streetlight technology between 2022 and 2026. This will reduce greenhouse gas emissions and help Maryland meet its climate change goals. Pepco has plans to modernize more than 66,000 existing streetlights with centrally managed smart LED streetlights and smart nodes that will offer remote light management and more enhanced operational oversight.
Pepco is also building out its EVsmart program to facilitate the transition toward zero emissions vehicles and an electrified transportation system. EVsmart has already powered up several of the planned 250 new Level 2 electric vehicle (EV) charging stations in Maryland. The company also provides customers with rebates, tools, and information on how to go electric.
The multi-year structure enables Pepco to hold energy delivery rates flat for the first two years of the plan as the region recovers from the pandemic. But after those first two years, the company is requesting a 4.4 percent ($5.50) upward adjustment of typical monthly residential bills effective April 1, 2023, and a 4.2 percent ($5.50) upward adjustment of typical monthly residential bills effective on April 1, 2024, to reflect the investments being made.
Over the entire period, customers would experience an $11 monthly increase in the typical residential bill, or 1.29 percent annual average per year over the plan period since the last rate increase. Even with the increases, the typical Pepco residential customer’s bill will remain about 14 percent lower than in 2011.
The plan is being reviewed by the PSC, an independent state commission with a decision expected in May 2021.
“We understand the challenging impacts that the COVID-19 pandemic has brought upon our customers and communities. This plan allows us to provide customers stability in their energy rates while continuing to make investments that will help make the grid smarter, stronger and cleaner, and support in the recovery of the local economy when it is needed most,” Donna Cooper, Pepco region president, said. “We have worked thoughtfully and collectively to build a plan to help support the region’s recovery—offsetting rate adjustments by accelerating tax benefits to keep energy delivery rates flat for at least two years. We provided grants and donations to help support our communities with assistance to small businesses and emergency funds, community colleges, and impacted students, as well as relief organizations that support customers impacted by the pandemic.”
Pepco has provided more than $2 million to local nonprofits and relief funds to support families, individuals, and small businesses impacted by the COVID19 pandemic.
