Despite Pepco’s Questionable Spending, the PSC Refused to Reconsider Their Approval of the Latest Rate Increase

Early last December, the PSC approved $123 million in rate hikes over the next two years for Pepco.

On Monday (Jan 28), the Public Service Commission refused to reconsider Pepco’s rate increase. Opponents of the rate increase* argued that the PSC had violated due process by failing to hold an evidentiary hearing, failing to establish an evidentiary record, and denying the opportunity to cross-examine Pepco’s witnesses. Specifically, this refers to Pepco's stated cost and revenue.

Stakeholders and experts could not tell how (or the truthfulness of) Pepco reported its spending. They could not tell if Pepco was taking in more cash than they were legally allowed. More importantly, they could not tell if Pepco’s spending even warranted this recent rate hike.

Agreeing with Pepco’s math without evidence appears like an “unstated and arguably inappropriate deference to Pepco,” per the one dissenting commissioner, Commissioner Beverley.

Nonetheless, the other commissioners— Chairman Thompson and Commissioner Trabue—sided with Pepco, the for-profit utility.

*Apartment and Office Building Association and Office of the People’s Council