Utility Regulatory News
The utility reporter specializing in weekly coverage of state PUC rulings.
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News Excerpts From a Recent Utility Regulatory News
LETTER # 3983 -- August 20, 2010
MARYLAND ELECTRIC RATES
Reliability Concerns Prompt Rate Increase
Although not disputing an electric utility’s need for system improvements so as to enhance service reliability, the Maryland Public Service Commission nevertheless has granted the utility but a fraction of the amount by which it had sought to raise rates. The utility, Potomac Electric Power Company (Pepco), had filed in December 2009 for additional revenues of $40 million, based on a test year ending June 30, 2009. According to the utility, it was presently earning a rate of return on common equity (ROE) of only 5.65%, far below the 10% ROE it was authorized in its last rate case. The utility submitted that even a 10% ROE was inadequate in today’s economic climate, and it sought a 10.75% ROE instead. Two months after Pepco’s filing, the commission directed the utility to update its rate application to reflect test-year data for the full 12 months ending December 31, 2009. In compliance therewith, Pepco adjusted downward its rate request to just $32.2 million. At hearing, Pepco also reduced its ROE request to 10.6%. The commission, however,
determined that a number of the company’s expense, rate base, and ROE claims had been overstated, such that it allowed the utility a rate increase of only $7.77 million and a return on equity of just 9.83%....
ADVANCED METERING INFRASTRUCTURE
Vt. Endorses CVPS “SmartPower” Proposal
Deeming it likely that the benefits of an electric utility’s planned deployment of smart metering equipment will be greater than the costs associated with such rollout, the Vermont Public Service Board has approved the company’s proposal. As presented by the utility, Central Vermont Public Service Corporation (CVPS), its “SmartPower Plan” would strive to install advanced metering infrastructure (AMI) throughout its service territory. The utility said it envisions introducing an array of new meter and metering options, including two-way communications systems that will allow direct interaction between the utility and its consumers. ...
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