Maryland PSC approved new rate plan for Potomac Edison
Maryland Public Service Commission (PSC) has approved new base distribution rates for Maryland customers of Potomac Edison.
The updated rates, which went into effect last week, will result in a 3.5 percent overall increase – or $4.62 monthly – for the average Potomac Edison residential customer using 1,000 kilowatt hours per month. The new approved rates will be partially offset at the beginning of 2024 by a decrease in the Electric Distribution Investment Surcharge (EDIS).
The $28 million rate adjustment will build upon service reliability enhancements made in recent years. These enhancements include ongoing tree trimming to help prevent tree-related equipment damage; inspections of lines, poles, and substations, including the use of helicopters and technology to identify issues that cannot be seen from the ground or by eye; and critical maintenance of newly installed equipment that helps prevent or minimize the impact of power outages, particularly during severe weather. Further, by the end of 2023, the company will have installed dozens of reclosers that allow crews to isolate a problem on one portion of a power line while keeping electricity flowing through the rest of the line.
“As the population has grown across our Maryland service area, so has the demand for electricity, especially as customers adopt electrification tactics in their homes and businesses. Our company’s continued investments in the energy distribution system will help us deliver on our commitment to providing dependable and affordable electricity to homes, businesses and communities,” Don McGettigan, acting president of FirstEnergy’s Maryland operations, said.
Potomac Edison has grown significantly in the last five years, serving about 20,000 more Maryland customers than it did during its last base distribution rate review in 2018. Prior to that rate update, the company did not increase its base rate for nearly 25 years. Even with this increase, Potomac Edison customers will continue to pay the lowest electric rates among Maryland’s investor-owned regulated electric distribution companies.
The company, a subsidiary of FirstEnergy, provides power to about 285,000 customers in all or parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington counties. Customers in the Eastern Panhandle of West Virginia are unaffected by the rate review.
