For Immediate Release
WASHINGTON, D.C. (August 8, 2018) – The Public Service Commission of the District of Columbia (PSC) has approved a settlement agreement regarding Pepco's electric delivery rate request resulting in a $24.1 million overall decrease to electric delivery rates for its District of Columbia customers. This settlement combines the company's original December 2017 rate change request of $66.3 million with the PSC and the impact of the federal Tax Cuts and Jobs Act tax reductions that became effective January 1, 2018.
"This settlement is good news for our customers, and we appreciate the hard work and cooperation of all involved," said Dave Velazquez, president and CEO of Pepco Holdings. "This important effort allows us to continue to invest in the local energy grid and provide our customers with the reliable service they expect and deserve from Pepco."
Specifically, electric delivery rates for Pepco residential customers in the District of Columbia will not change. As part of the settlement, residential customer rates will remain unchanged and the duration of the Customer Base Rate Credit, a benefit of the Exelon and Pepco Holdings merger provided to residential customers that is currently included in customer rates, will be extended until approximately March 2021. Electric delivery rates for commercial and industrial customers also will decrease.
Pepco filed its December 2017 rate request to recover costs spent to maintain and modernize the local energy grid and other costs, such as technology upgrades and operational improvements. Electric delivery rates cover the cost of the poles, wires and other equipment that deliver electricity to customers' homes and businesses, the cost of customer service, and the preparation and processing of customer bills. The money spent on these efforts allows the company to continue to meet customers' expectations and has improved efficiency, reliability, and safety. These efforts have resulted in the most reliable service in the company's history for customers, as well as some of the fastest restoration times ever. During the past five years, the number of electric outages has decreased by 37.5 percent in Pepco's District of Columbia service area.
The Tax Cuts and Jobs Act, signed into law late last year, reduced tax costs for energy-delivery companies and created an opportunity for Pepco to lower bills for its customers. Through this regulatory rate review, the company is passing along the full amount of the tax benefits. This agreement comes a few months after Pepco reached an agreement on the company's rate request and tax benefits plan for Maryland customers.
Pepco is constantly working to provide 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.
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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.