OPC Announces Settlement Agreement to Reduce Pepco Distribution Rates
-Information provided by the DC Office of the People's Counsel:
Today, People's Counsel Sandra Mattavous-Frye announced that the Office of the People's Counsel, Pepco, D.C. Government, the Apartment & Office Building Association, and other key stakeholders filed a settlement agreement with the District of Columbia Public Service Commission that lowers Pepco's distribution rates by $24.1 million.
"This end result of the settlement, which combines the Tax Cuts and Jobs Act reductions and Pepco's request for a $66.2 Million rate increase, shields and protects consumers from increases in their utility bills. The settlement will also extend the Residential Customer Base Rate Credit acquired in the Pepco/Exelon merger" stated the People's Counsel.
Unlike other rate cases, Pepco's proposed rate case was impacted by the Tax Cuts and Jobs Act of 2017, approved by Congress in December, which mandated a reduction in the corporate tax rate from 35% to 21%.
Combining the result of this settlement with the benefit of the Residential Rate Credit OPC pushed for in the Pepco/Exelon merger, residential consumers have not paid for an increase in the distribution rate for four years. "OPC's aggressive advocacy resulted in a tangible benefit for District consumers. We fought hard to ensure that consumers received maximum financial benefits," stated People's Counsel, Sandra Mattavous-Frye.
Now that the settlement has been filed, the Commission will hold a public interest hearing and will issue a final order affirming or denying the settlement.
OPC continues to review the impact of the Tax Cuts and Jobs Act on each of the utilities operating in the District to ensure all reductions resulting from the Tax Act are returned to ratepayers.