For Immediate Release
WASHINGTON, D.C. (April 20, 2018) – Eleven parties, including the Office of the People's Counsel, the District of Columbia Government, the Apartment and Office Building Association of Metropolitan Washington, and Pepco have reached a settlement agreement regarding Pepco's electric delivery rate request and the company's plan to pass along federal tax benefits to customers in the District of Columbia. The settlement has been filed with the District of Columbia Public Service Commission (PSC) for approval.
As part of the settlement, Pepco has agreed to extend the Customer Base Rate Credit Fund, provided as part of the Pepco Holdings and Exelon merger. Because of this extension, energy delivery rates for residential electric customers will remain unchanged.
"We appreciate the hard work and cooperation of all involved to arrive at a good outcome for customers," said Dave Velazquez, president and CEO of Pepco Holdings. "Working together, we completed the first rate request settlement in 19 years for Pepco. As a result, our customers will continue to see affordable energy delivery rates along with the reliable service they have come to expect from their energy provider."
"I believe the settlement delivers to consumers the rate reduction they are due rather than a rate hike," said People's Counsel Sandra Mattavous-Frye. "The timing of the federal tax cut and the impact of the rate credit that OPC has consistently fought for have resulted in a win for ratepayers."
"This is a significant win for District residents, and I'm proud that the Office of the Attorney General played a key role in helping reach this agreement," said Karl Racine, attorney general for the District of Columbia. "With this settlement, residents will see a reduction in their electric bill instead of the increase that Pepco originally requested. The groups we joined with in this negotiation represent a broad range of interests, but we were united in the idea that it is only fair that if a public utility receives a tax cut, the benefits of that cut be shared with the public."
"This a good deal for all ratepayers," says Frann Francis, AOBA's senior vice president and general counsel, "and will help to stabilize rates for the commercial buildings and master-metered apartments that AOBA represents."
The settlement combines the impacts of federal tax reductions from the Tax Cut and Job Act on the company's rate request filed last December. The settlement provides customers the benefits of the federal tax reduction as quickly as possible and efficiently resolves the pending requests.
Pepco filed its December 2017 rate request to help recover capital costs, including those costs necessary to build a smarter energy infrastructure. Pepco is constantly working to provide its customers with valuable information about how to save money and energy, as well as information about programs and arrangements for customers who may be struggling with their energy costs. More information about these programs and initiatives is available at www.pepco.com.
About Pepco: Pepco, a public utility owned by Exelon Corporation (NYSE: EXC), provides safe and reliable energy to more than 842,000 electric delivery customers in Maryland and the District of Columbia.
About OPC: The Office of the People's Counsel is an independent agency of the District of Columbia government. By law, OPC is the public advocate for consumers of electric, natural gas and telecommunications services in the District.
About AOBA: Representing the interests of the commercial and multifamily industry in the Washington, DC region, AOBA is the local affiliate of BOMA International and the National Apartment Association. For more info, please visit www.aoba-metro.org. AOBA's subsidiary, AOBA Alliance, Inc., facilitates low-cost energy procurement for the commercial building industry, including multifamily apartment buildings. A licensed broker and marketer of energy services in the District of Columbia, Maryland, Pennsylvania, and Virginia, the AOBA Alliance has been a leader in commercial energy contracting since the opening of competitive energy markets. For more info, please visit www.aobaalliance.com