Brace for Higher PEPCO Electricity Rates
Maryland and DC customers may be facing a PEPCO price hike very soon. The utility has proposed plans to raise Standard Offer Service (SOS) electricity rates within the next few months. While these rates may not affect most customers during upcoming shoulder months, summer prices aren’t that far away. And if PEPCO wants to raise MD electricity rates, then customers should know how they can do something about these proposals.
Learn About MD/DC PEPCO SOS Rates
The proposal in MD would increase the average monthly PEPCO rates by around $5.80 before 2023. This proposal details a multiyear plan that could go into effect next month and last through 2023. This is unusual since the Maryland Public Service Commission (PSC) rules have only recently allowed for multiyear price plans as of last year. In addition, this is the first time PEPCO has proposed a multiyear plan, even after these rules changes.
This may sound like a lot, especially given the difficult year customers have had. But, the PSC said that the first two years of the plan will pass tax savings to customers. It’s believed that this will help offset the costs of the price hike. It’s currently uncertain how these tax savings and rates may affect MD’s high energy bills.
DC customers also have new standard offer service (SOS) rates to deal with.
DC supply charges will have a minimum charge of $1.91 per month and 6.222 cents per kilowatt-hour (kWh) in excess of 30 kWh. This goes along with an admin charge of .0150 cents per kWh. This is about .0034 cents more than current rates, with a minimum charge that’s 11 cents more when compared to current winter rates. These rates begin on June 1, 2021.
Learn More About PEPCO Rates
PEPCO appears to be aware of how challenging the year has been for MD and DC customers. That’s why PEPCO has hosted a hearing on March 15 to discuss the proposal and its effects. A second hearing is set for Thursday, April 15 and both the PSC and PEPCO invite customers and other interested parties to comment inn advance. Last year, the PSC began a pilot program for multi-year rate periods and PEPCO’s proposal is the first it has ever made. In the past, the PSC has relied on making rates based on 12 month periods. Changing this process to cover several years in advance is hoped to allow customers to know with certainty the timing and scale of rate changes.
Save Money on Electricity Rates
While mdenergyratings.com will follow this story, that doesn’t mean that MD customers can’t act now. There are several MD energy companies that have great plans with low rates and also offer benefits that can help save you money. As always, keep an eye out so you can save more money on your electricity rates.
You can learn more about saving money and energy by comparing rates, plans, and provider reviews at www.mdenergyratings.com.