Commission grants Pepco limited rate increase

The Public Service Commission considers the cost of infrastructure improvements, such as this work along Wisconsin Avenue NW in Friendship Heights and Tenleytown, in determining electricity rates. (Brian Kapur/The Current/March 2016)

Pepco received permission Monday to raise its electricity rates, though the D.C. Public Service Commission authorized only half of the requested increase.

The utility company had requested a $77.5 million increase, but the commission — which oversees Pepco’s power distribution to ensure fair rates and quality service — concluded that the company would be sufficiently profitable with a $36.9 million increase.

The increase would add $2.09 to the typical residential customer’s monthly bill, though the commission will use funds previously provided by Pepco through its merger with Exelon to delay residential rate increases for up to two years. Low-income ratepayers are unaffected, and the commission is also exploring possible relief for seniors and people with disabilities, according to a release.