The Maryland Public Service Commission has approved a rate increase for Potomac Electric Power Company, but it’s not nearly the increase that the electric company had hoped for.
The PSC announced Wednesday that it approved a revenue increase of $8.75 million for Pepco, with a return on equity of 9.62 percent. But Potomac Electric had requested an increase of $37.4 million — more than four times what it was granted.
The new rates will cause the typical customer to pay 93 cents more on each monthly bill.
The rate increase request, filed Dec. 4, was Pepco’s third in three years. The company had initially asked for an increase of $43.3 million with a return on equity of 10.25 percent, but it revised that down.
Exelon Corp. announced in May that it planned to acquire Pepco Holdings Inc., the parent company to Potomac Electric.
Following the announcement, Pepco Holdings’ senior vice president and chief financial officer Frederick Boyle told investors on a conference call that the company was not planning to file any more rate cases after the one decided Wednesday. That contradicted Potomac Electric’s earlier statement that it would file another rate case following the one decided Wednesday.
In Potomac Electric’s last rate case, it was granted about half the increase it had asked for.