Pepco contemplates rate increase

The Sentinel

March 11, 2010

Pepco’s electricity rates will increase, despite opposition from consumers and consumer-representation groups.

The D.C. Public Service Commission approved a $19.8 million increase in distribution rates — less than half of the $44.5 million Pepco initially requested. According to the commission, the distribution rates will be offset by a recent decrease in supply rates for 97 percent of Standard Offer Service (SOS) customers who will see an average increase rate of $1.30 to $2.30 per month.

Customers not served by SOS can expect an increase on an average monthly bill of $2.50 to $3.50 based on consumer usage. Residential Aid Discount (RAD) and RAD-All Electric customers will see an average monthly increase of $2.31.

The Commission advised that in order to offset the hike, which it characterized as a “moderate” rate increase, it would be beneficial if consumers turned to energy-efficient measures, such as switching incandescent lights with compact fluorescent lights.

While Pepco may be satisfied with the approved $19.8 million, many are not.

“No rate hike is acceptable, not even so-called moderate ones,” Justice First Executive Director Crystal Kim said.

Justice First, a grassroots organization, is a “Power for the People” campaign whose aim is to change the way utilities are distributed to the residents of the D.C. so that no household is at a risk of having its electricity or gas shut off because the residents can’t pay. By providing the necessary support to families who have had to make sacrifices and cut costs, Justice First will be “using every avenue possible” in the form of demonstrations, rallies and press conferences, to help those in need.

“Our utility rates have doubled in the last five years,” Kim said. “Since the 2005 Bush Administration, there has been a 30 percent increase in the electricity rates. This is double in the D.C. area, where the average bill is 100 percent more than it was five years ago.”

One Pepco customer on the receiving end of Pepco’s rate increase was 52-year-old Edward Durham, of D.C., who suffers from diabetes and needs his electricity to keep his insulin refrigerated. Unable to pay his electric bill, Pepco threatened to cut off his electricity. Intervening on his behalf, Justice First organized a demonstration and press conference demanding Pepco keep Durham’s lights on, in addition to reducing the amount owed and setting up a payment plan. While Durham avoided a shutoff, it wasn’t long before Pepco threatened to cut off his services once again.

According to Justice First, Pepco demanded what he owed and suggested he purchase an icebox for his insulin.

“There are several payment options available that customers can utilize. Time payment arrangements allow customers to mutually agree with our customer-care service on how much they can pay each month,” said Pepco spokesman Andre Francis, who also listed other payment options.

Established in 1913 by Congress, the Public Service Commission regulates electric, natural gas and telecommunications companies in D.C., in addition to representing the public. But although more than 2,000 letters were sent to the D.C. Public Service Commission opposing Pepco’s proposal, some feel customers’ voices have gone unheard.

“The Public Service Commission does not represent the public. It represents Pepco’s millionaire executives,” Kim said.

“Like any parent, I have dreams of my daughter going to college. Her dream is to go to college,” said Mia Johnson, a single working mother. “But the reality is that this may not be possible if I am expected to hand over all my income and savings to Pepco.”Unless the decision is appealed, the higher rates will take effect on or about March 23.

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