March 24, 2023

Potomac Edison has made strong service reliability enhancements in recent years through system upgrades, vegetation management, equipment inspections and other maintenance activities with the goal of enhancing and modernizing our electric infrastructure. To help support and advance these efforts, we have requested a review of our base electric rates by the Maryland Public Service Commission (PSC).

“As the demand for electricity continues to increase with population growth in our Maryland service area, continued investments in a smart, modern energy grid will help us deliver on our commitment to providing dependable electricity to homes, businesses and communities,” said Linda Moss, president, Maryland Operations. “This rate proposal balances our need to invest while keeping electric bills affordable for our customers.”

Upon approval of the proposed $44 million rate adjustment, Potomac Edison customers would continue to pay the lowest electric rates among Maryland’s regulated electric distribution companies. The average residential customer using 1,000 kilowatt hours (kWh) per month would see a 9.7% overall rate increase – or $9.50 monthly. The review process will not affect Potomac Edison’s customers in West Virginia.

The rate review complies with a 2019 PSC order requiring Potomac Edison to file a new rate plan by 2023 at the end of its first Electric Distribution Investment Surcharge (EDIS). As part of this rate review, we are requesting a second phase of EDIS to build on the measurable success of investments made in phase one. For example, with the completion of several distribution automation projects – which allow personnel to automatically switch customers to an adjacent power line during an outage – we have prevented about 9,300 customer interruptions and avoided 1.3 million minutes of outages that would have happened prior to automation four years ago.

Other activities proposed through the rate review include the following:

• Completing the installation of reclosers at substations throughout our Maryland service territory to help minimize the number of customers interrupted by outages. Reclosers allow crews to isolate a problem on one portion of a power line while keeping electricity flowing through the remainder of the line.
• Continuing the replacement of underground electric lines with a more reliable type of cable.
• Launching two new initiatives to support customers who struggle with their electric bills, including an Energy Assistance Outreach Team to help increase awareness, education and participation in energy assistance programs available to low-income customers.
• Recovering costs associated with the EV Driven program, which supports a statewide goal of reaching 300,000 zero-emission vehicles on the road by 2025.

We expect that the new rates will be effective by Oct. 19, 2023, and will participate in public meetings and engage with key stakeholders to ensure an open and thorough review of our proposal.