Pepco Withdraws Rate Increase Request After Maryland Utility RELIEF Act Passage

TL;DR: Pepco retracted its proposed forecast-based rate increase following the Maryland General Assembly's passage of the Utility RELIEF Act. This legislation and related program adjustments are projected to provide significant savings for utility customers.

Claim 1: Pepco will abandon its proposed forecast-based rate increase after the Maryland General Assembly passed key energy legislation.

Pepco confirmed it withdrew its proposed forecast-based rate increase request. This action directly responds to the Maryland General Assembly's passage of the Utility RELIEF Act. The act temporarily prohibits utility companies from basing rate increases on forecasted costs, a method also known as a fully forecasted test year. Pepco informed the state's Public Service Commission of this withdrawal.

Verdict: True

Analysis: Pepco's official notification to the Public Service Commission confirms its withdrawal of the rate increase proposal. This decision directly aligns with the legislative mandate to suspend forecast-based rate adjustments.

Claim 2: If Gov. Wes Moore signs the legislation, utility customers are expected to save at least $150 per year due to cuts to the EmPOWER program.

Utility customers could save a minimum of $150 annually if Governor Wes Moore signs the legislation into law. These projected savings stem from reductions to the EmPOWER program. The EmPOWER program requires utility companies to offer incentives, such as discounted energy audits, weatherization projects, and efficient appliances, aimed at helping consumers save energy and money. Fees for the EmPOWER program appear as a distinct line-item on residents' utility bills.

Verdict: Mostly True

Analysis: The legislation directly projects at least $150 in annual savings for customers due to EmPOWER program cuts. This outcome remains contingent on the Governor's signature, and actual savings may vary.

Claim 3: The Office of the People’s Council estimates that a one-year pause on forecast-based rate increases could save residential utility customers $4.5 million.

The Office of the People’s Counsel, a state body dedicated to protecting utility customers, estimates a one-year pause on forecast-based rate increases could save residential customers $4.5 million. This specific estimate appeared in a news release from the office. The Utility RELIEF Act temporarily prohibits the Public Service Commission from approving rate increases based on a forecasted test year until at least April 1, 2027.

Verdict: Mostly True

Analysis: This $4.5 million estimate for residential utility customer savings comes directly from the Office of the People's Counsel. The 'mostly true' assessment reflects that this figure is an estimate and depends on the temporary prohibition's duration and actual impact.

Moving forward, the Maryland Public Service Commission will conduct proceedings to determine the best future methods for approving utility rate increases. Governor Moore's signature on the Utility RELIEF Act is anticipated in the coming weeks.