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Customer bills stayed flat in 2021 due to tax offsets; rate changes were partially offset by certain tax benefits in 2022; 2023 rate changes to take effect on April 1, 2023

WASHINGTON, DC (Feb. 9, 2022) — Pepco's Maryland multi-year plan, approved by the Maryland Public Service Commission (PSC) in June 2021, continues to provide the ability for Pepco to improve the local energy grid and build a smarter, stronger, cleaner energy future for our 591,000 electric customers in Montgomery and Prince George's counties, while assisting the region in the long-term recovery from the pandemic.

As authorized by the PSC, Pepco MD customers' bills stayed flat in 2021 through the use of certain tax benefits and adjustments to offset approved rate increases. Delivery service rates increased beginning in April 2022 and will be partially offset by certain tax benefits through March 2023.

After the April 2023 rate adjustment, the average Maryland residential electric bill for a customer using 811 kilowatt-hours per month will increase by $2.51 per month. Individual customer bill increases may differ slightly from these amounts, depending on household energy use.

Pepco's multi-year plan includes hundreds of projects to modernize and reinforce the local energy grid between June 2021 and March 2024. This includes:

• Efforts to improve system performance through new, more modern equipment;
• Work to expand capacity and meet the growing energy needs of customers;
• Efforts to help prevent those power outages that can be prevented; and
• Corrective maintenance work focused on replacing infrastructure that is approaching end of life.
  

Making the grid smarter, stronger and cleaner will also help the company withstand increasingly severe weather events, which are becoming more frequent due to climate change. Pepco's Maryland customers are benefitting from this ongoing infrastructure work and experiencing fewer outages. Pepco customers in Maryland experienced the third best year in history for frequency of electric outages. The best ever frequency for outages in Maryland was established in 2021, with the best three years on record occurring in 2020, 2021 and 2022. Even when service was interrupted, crews were able to safely restore service in just 82 minutes, on average. Over the past ten years, ongoing investments in the local energy grid have driven a 57 percent decrease in the frequency of electric outages Pepco customers have experienced.

Pepco recognizes that many customers may have difficulties facing increased utility bills. As a reminder, Pepco offers bill payment assistance and payment arrangements. The company will work with every customer to help identify the support necessary to continue energy service. Customers can call 202-833-7500 or visit pepco.com/EnergyAssistance for additional information. In 2022 alone, Pepco helped 31,684 customers secure more than $48 million in energy assistance, funding that helps pay customer energy bills and money that customers do not need to pay back.

More information on Pepco's multi-year plan is available at pepco.com/MYPMD.