Maryland approves additional funding for Pepco, Delmarva customers
The Maryland Public Service Commission (PSC) recently allocated an additional $48 million in financial benefits to Maryland ratepayers, as part of the conditions of the Commission’s approval in May 2015 of the merger between Exelon Corporation and Pepco Holdings, Inc.
The merger originally led to over $127 million in financial customer benefits, with the recent addition bringing the total to $175 million. A condition of the merger provided that if subsequent analysis found that benefits in other states exceeded those provided in Maryland, the benefits for Maryland ratepayers would be increased. Exelon and other interested parties found that benefits in the District of Columbia exceeded those in Maryland and, in November 2016, recommended allocating additional funds.
The PSC’s order directs the company to use nearly $22 million of the additional funding on energy efficiency programs in Montgomery and Prince George’s counties in Pepco’s service territory), while $8 million is to be used for energy efficiency programs in Exelon subsidiary Delmarva Power & Light’s service territory. The commission directed $6.7 million to go to support programs that help low-and-moderate income customers of both Pepco and Delmarva pay their utility bills.
Of the remaining amount, $9 million will go to Maryland Energy Administration energy efficiency programs that benefit commercial and industrial customers in the Pepco and Delmarva service territories. The PSC will use $2 million of the funds to support its efforts in Public Conference 44, a review of Maryland’s electric grid aimed at finding ways to provide a more affordable, reliable and sustainable electric distribution system.
