AOBA’s Efforts Result in Reduced Rate Increase for Maryland Members

The MD Public Service Commission’s (MD PSC) August 6, 2010 Order approved a $7.8 million Pepco rate increase plus nearly $7.5 million in cost recovery in rates (spread over 10 years) in response to the winter snow storms of 2010. Pepco had originally requested an increase of $40 million which was later reduced to $28 million. Read more

MD Regulators Approve Ratepayer Funding of Pepco’s Installation of Smart Meters

On August 13, 2010, the MD Public Service Commission (MD PSC) approved Pepco’s request to recover from ratepayers its costs (plus interest) to install smart meters and smart grid technology. These costs involve expenses not covered by Federal Stimulus funding received by Pepco. Read more

BG&E Receives Regulatory Approval to Install Smart Meters

In an August 13 order, the MD Public ServiceCommission (MD PSC) approved BG&E’s proposal to install smart meters. Like Pepco, BG&E will expense its costs on the Company’s books and seek recovery of those expenses plus interest in later rate cases. Read more

MD Regulators Question Pepco Officials Regarding Outages; Schedule Public Hearings on Aug. 30 and Sept. 2

In response to complaints from ratepayers and public officials - and as widely reported, Pepco executives appeared before the MD Public Service Commission on August 17th to answer questions from the Commissioners regarding the Company’s numerous outages, delays in service restoration, the lack of response to inquiries and questions from ratepayers, and Pepco’s plan to improve service quality and network reliability. Read more

MD Energy Administration Makes Available $2.2 Million for Energy Efficiency Loans

Energy conservation loans of $2.2 million for FY 2011 are available to various groups including businesses in Maryland under the Jane E. Lawton (JELLP) program administered by the MD Energy Administration (MEA). Applications are being accepted now. Requests for funding through JELLP should have a simple payback of 10 years or less. Read more

AOBA’s Efforts Result in Reduced Rate Increase for Maryland Members

The MD Public Service Commission’s (MD PSC) August 6, 2010 Order approved a $7.8 million Pepco rate increase plus nearly $7.5 million in cost recovery in rates (spread over 10 years) in response to the winter snow storms of 2010. Pepco had originally requested an increase of $40 million which was later reduced to $28 million. The rate increase became effective on July 29, 2010 and will increase Pepco’s distribution rates by 2.3% over the Company’s prior distribution rates. AOBA strongly opposed Pepco’s rate increase. The MD PSC decision to significantly reduce Pepco’s rate increase request by 75% is recognition of the successful arguments against the Company’s proposal by AOBA. AOBA’s efforts resulted in residential and small commercial (GSLV) rates being increased 3.074%, with large commercial (MGT-LV, MGT-3A, GT-LV, GT-3A, GT-3B) rates increased by only 1.146% on distribution.

MD Regulators Approve Ratepayer Funding of Pepco’s Installation of Smart Meters

On August 13, 2010, the MD Public Service Commission (MD PSC) approved Pepco’s request to recover from ratepayers its costs (plus interest) to install smart meters and smart grid technology. These costs involve expenses not covered by Federal Stimulus funding received by Pepco. According to Pepco, its project will permit ratepayers to (1) directly control their use of electricity, (2) select appropriate pricing plans based upon usage, and (3) lower costs to ratepayers and reduce energy consumption while improving energy efficiency. Over time, Pepco is authorized to seek recovery of the costs in future rate proceedings.

Background: In October 2009, the Department of Energy awarded Pepco $104,800,000 from ratepayers to fund the Company’s plan to install 570,000 smart meters, institute dynamic pricing programs, and deploy distribution automation and communication infrastructure technology to enhance the electric grid operations. At a minimum, Pepco can seek to recover $104,800,000 from ratepayers should it be determined by the MD PSC that those costs were “prudently incurred.” AOBA opposed Pepco’s request as too costly, because the Company’s failed to establish the reliability of the technology, and because of Pepco’s inability to demonstrate benefits to ratepayers in reduced energy costs and energy efficiency to be derived from this huge financial investment requested by Pepco.

BG&E Receives Regulatory Approval to Install Smart Meters

In an August 13 order, the MD Public ServiceCommission (MD PSC) approved BG&E’s proposal to install smart meters. Like Pepco, BG&E will expense its costs on the Company’s books and seek recovery of those expenses plus interest in later rate cases.

Background: BG&E received $200 million in Federal Stimulus dollars for the project. BG&E will allocate $136 million of the $200 million in federal funds to the current project cost projections of $835 million to deploy its smart meter system. BG&E’s Maryland ratepayers are being asked to pay, at a minimum, the difference between the two numbers --$699 million over time if the MD PSC determines that BG&E’s costs were “prudently incurred.”

MD Regulators Question Pepco Officials Regarding Outages; Schedule Public Hearings on Aug. 30 and Sept. 2

In response to complaints from ratepayers and public officials - and as widely reported, Pepco executives appeared before the MD Public Service Commission on August 17th to answer questions from the Commissioners regarding the Company’s numerous outages, delays in service restoration, the lack of response to inquiries and questions from ratepayers, and Pepco’s plan to improve service quality and network reliability.

Pepco acknowledged that its performance has been less than stellar, and that the Company ranks in the bottom quarter for service quality, service restoration and network reliability among its peers. Despite its best efforts, Pepco conceded that the Company’s current plans for maintenance, repair, and customer service in response to outages and in preventive efforts to ensure network reliability must be improved.

NOTE: On Aug. 30 and Sept. 2, the public will have the opportunity to comment on Pepco’s service quality during public hearings before the MD PSC. Participants are limited to 5 minutes for comments. Written comments may be submitted to the MD PSC no later than Aug. 31. Questions? Call the PSC at (410) 767-8000.

• Aug. 30th hearings at 6:00pm: Council Office Building, Third Floor Council Hearing Room, 100 Maryland Avenue, Rockville, MD
• Sept. 2nd hearings at 6:00pm: Hallam Theatre, Prince George's Community College, 301 Largo Road, Largo, MD

MD Energy Administration Makes Available $2.2 Million for Energy Efficiency Loans

Energy conservation loans of $2.2 million for FY 2011 are available to various groups including businesses in Maryland under the Jane E. Lawton (JELLP) program administered by the MD Energy Administration (MEA). Applications are being accepted now. Requests for funding through JELLP should have a simple payback of 10 years or less. All costs necessary for implementing an energy conservation project can be considered for funding, including the technical assessment, reasonable fees for special services, plans and specifications, and the actual costs of the conservation measures. The interest rate for all JELLP loans made during FY11 will be 2.5 percent

The minimum request for funding is $40,000; the maximum is $500,000. The MEA will consider larger loan requests on a case-by-case basis, based on energy savings.

Note the following MEA statement on program funding and application deadlines:
“Until Sept. 30, 33 percent of available loan funds will be reserved for non-profit organizations; applications from local governments and businesses will be considered together with energy savings as the key differentiator. From Oct. 1 until Oct. 29, all remaining funds will be pooled and loaned to eligible organizations on a first-come, first-served basis. Oct. 29 is the deadline for FY11 applications. MEA reserves the right to extend the deadline beyond November 1 if funding remains available.”

For more info and online applications visit the MEA web page at http://www.energy.state.md.us/incentives/state-local/janeelawton.asp. Please address questions to JELLP program manager Daniel Bresette at dbresette@energy.state.md.us or 1-800-72-ENERGY.