Potomac Electric Power Company Seeks Reconsideration of Order No. 22416 Regarding Multi-Year Rate Plan

Strategic Insights -

The Public Service Commission of the District of Columbia recently received an application for reconsideration from Potomac Electric Power Company (Pepco) regarding the implementation of a multi-year rate plan for electric distribution service in the District of Columbia. In May 2025, the Commission issued Order No. 22416, which granted the Apartment and Office Building Association of Metropolitan Washington's (AOBA) motion to suspend the bill stabilization adjustment (BSA) working group and directed Pepco to file monthly BSA reports with additional information, including reclassifications of customers among rate classes. Pepco seeks reconsideration of this directive, arguing that it would impose an undue burden on the Company and require significant additional hours of labor and resources.

Key Takeaways:

  • Pepco has applied for reconsideration of Order No. 22416, which directed the Company to provide reclassifications of customers among rate classes in monthly BSA reports.
  • The Commission's directive would require Pepco to expend significant additional hours of labor and likely implement a new billing/IT process to reduce the labor burden, with estimated costs of up to $35,000 and a development and implementation period of eight months.
  • Pepco argues that the Commission's finding that providing monthly filings with reclassification information would not impose an undue burden on the Company is factually incorrect and not supported by evidence or argument.
  • The Company requests reconsideration and elimination of the requirement to provide information related to the reclassification of customers as part of the monthly informational filing.
  • Pepco proposes an alternative solution, providing a variance report with its monthly BSA reports, which would reduce the burden on the Company.

Statistics:

  • Estimated costs of implementing a new billing/IT process to reduce labor burden: up to $35,000
  • Development and implementation time for new billing/IT process: eight months
  • Number of years for multi-year rate plan: not specified
  • Percentage of customers affected by reclassification: not specified

Sources:

  • Public Service Commission of the District of Columbia. (2025). Pepco's Application for Reconsideration of Order No. 22416.
  • Pepco Holdings. (2025). Pepco's Application for Reconsideration of Order No. 22416.