Non-Unanimous Settlement Reached on Adder to Default Service Rate

Several parties have informed the Maryland PSC that they have reached a non-unanimous settlement concerning the level of the bypassable administrative charge included in SOS rates at Pepco and Delmarva in Maryland.

Specifically, Pepco, Delmarva, PSC Staff, and the Retail Energy Supply Association informed the PSC that they have agreed on a settlement of all the issues in the proceeding.

The Office of People's Counsel has indicated that it will oppose the settlement.

Details of the settlement were not immediately filed.

As currently structured, the SOS administrative charge, which is bypassable, includes a return component, an incremental cost component, an administrative adjustment, and an uncollectible component. Funds collected from the administrative adjustment on a bypassable basis are also credited to all distribution customers through an administrative credit on a nonbypassable basis.

At the time the case was opened, the admin charge was 4 mills/kWh at Pepco and Delmarva. Pepco and Delmarva were actually seeking an increase in the charges to reflect higher cash working capital costs.

A proposed order issued in 2011 would have eliminated the the SOS administrative charge and return component, and would have ordered that SOS costs and revenues should be considered as part of the utilities' standard operations in their next distribution rate case.

This summer, the PSC reversed this finding from the hearing examiner, as the Commission concluded some form of SOS Admin. Charge is appropriate, but remanded the case to further develop the evidentiary record on the level of the charge.

In light of the contested settlement, Pepco and Delmarva asked for a suspension of the case's procedural schedule and for a judge to hold a status conference.

Cases 9226 & 9232