Leggett, Baker Respond to Citizen Outrage, Demand Power Companies Improve
Seven Maryland county executives, responding to pressure from residents, wrote a letter to the Public Service Commission about the performance of the state's power companies.
The county executives of Maryland’s seven largest counties, including Montgomery and Prince George's, issued a letter to demand changes from the area’s power companies after the June 29 storm that left some 443,000 residents without electricity in record heat.
In a letter to Douglas Nazarian, chairman of Maryland’s Public Service Commission, Montgomery County Executive Isiah Leggett and Prince George’s County Executive Rushern Baker, as well as four other county executives and the mayor of Baltimore City, told the PSC that it is time for power companies to evaluate changes.
“As elected leaders of Maryland’s largest jurisdictions, we stand ready to work together to make sure major metropolitan areas are not disabled by a single weather event, whether it involves snow, rain, ice or wind,” the executives wrote.
The letter also proposes discussion of underground wire placement, as well as examination of Pepco and BGE's staffing levels and quality of their above-ground equipment.
Due to the heat wave that followed the storm, many counties and jurisdictions attempted to assist residents still without power but were unable to do so because power companies refused to provide specific addresses with outages, the letter says.
The recent death of an elderly Prince George’s County man brought the storm death toll in Maryland up to 19 on Tuesday, the Baltimore Sun reported.
Officials say in the letter that street-level information, which utility companies would not disclose, would have provided critical help in their efforts to fulfill public safety responsibilities.
“Utility companies can and should provide detailed outage information to local governments,” they wrote.
Montgomery County Council President Roger Berliner recently said in a statement that Pepco’s performance following the storm was unacceptable, citing the lengths of the outages, the “appalling communications” and data discrepancies.
The morning of June 30, 210,000 of the 305,000 Montgomery County Pepco customers and nearly 200,000 residents of Prince George's County reportedly had no power.
Two days after the storm hit, 188,824 residents -- nearly 61 percent of the county – were without power and about 68,000 residents were still without electricity after four days, according to Pepco.
Pepco data showed that in Prince George’s County, 92,155 residents – about 42 percent – were without power by Sunday and 17,000 still had no power four days after the storm.
Recent reports of Pepco rate increases have also contributed to customers’ feeling of discontent with the company.
The Washington Post reported that Pepco has proposed a 4 percent rate hike that could see Maryland customers paying up to $5.50 more on their bill. The PSC has not yet made a decision regarding the increase.
Leggett said in a press conference that he thinks the PSC should consider storm response in their decision.
“I know that you must have clear evidence based on performance and that is judged on results in a crisis situation,” he said.
According to The Washington Post, Berliner said he thinks Pepco has requested that the PSC wait on the decision in attempt to put some distance between its decision and customers' anger.
“I think they feel the timing of this rate increase request is particularly unfortunate given the criticism of their work,” he told The Post.
In addition, 9 News Now reported that Pepco and BGE are able to charge more on their customers’ next bills due to the money they lost when they couldn’t charge customers during the storm.
“It’s the law,” Pepco spokesperson Bob Hainey told 9 News Now. “It’s called bill stabilization.”
Maryland People’s Chief Paula Carmody told 9 News Now that the utility companies can only collect compensation for the first 24 hours of the outage, which could amount to a charge of less than a dollar for the average customer.
Bob Hydorn
4:37 pm on Wednesday, July 11, 2012
In my opinion, PEPCO should be owned by the county government(s) and run like WSSC. It's not perfect but I'd bet we'd get better service and could start a project to get lines buried underground. If Montgomery County is going to become more urbanized, then we need to lay the infrastructure for it. Electricity, like water, is too important to daily life to be entrusted to a profit-making entity whose only obligation is to its shareholders. I recall all this deregulation started with Bob Erlich's administration. The deal was that through deregulation we'd get competition and lower prices, which would benefit customers. Didn't work that way. We get lousy service and a crazy law that let’s PEPCO bill for lost storm income. Let’s all work together to stop this insanity.
jnrentz1
9:23 pm on Wednesday, July 11, 2012
What would be the cost of getting power lies buried? Would there be a guarantee that buried power lines would not fail?
I think a partial solution would be to allow any Marylander the privilege, to generate his or her own electricity through solar, wind or water.
MS
8:14 am on Thursday, July 12, 2012
Pepco is a privately-owned corporation that owns and operates the local electricity distribution infrastructure in DC and suburban Maryland. Pepco is owned by an energy corporation, Potomac Holdings, Inc. (PHI), whose stock is publicly traded. You may see PHI's website at http://www.pepcoholdings.com .
Pepco is regulated by the Maryland and DC Public Service Commissions. (Think of it as a government contractor.) The MD and DC Public Service Commissions impose detailed regulations on Pepco and Pepco operates to, or attempts to operate to, those requirements and standards. If the Public Service Commissions require specific steps or performance standards, Pepco obliges. If you want Pepco to operate to higher standards, get the DC and Maryland Public Service Commissions to tighten their performance standards. If you want Pepco to "harden" it's infrastructure even more than it is now doing by burying more power lines underground, get your Public Service Commissions to require it (and be prepared to pay for it in higher distribution fees).
The ownership of Pepco is really not the issue and there is no necessity for the government to take over ownership. If you invest in mutual funds or have a pension program that invests in mutual funds, you may already indirectly own PHI stock and therefore be an owner of Pepco without you even realizing it!
Resident
11:30 am on Thursday, July 12, 2012
Who nominates members of the Commission? Who appoints them? And do they represent non-profit as well as for-profit entities?
They have, in the past, rolled over and played dead like Pepco's pet dog. Not sure they will this time, but maybe...
macadoodle
9:27 pm on Wednesday, July 11, 2012
In one neighborhood, although there were fallen wires and downed trees, the street was not marked by PEPCO yellow tape as other dangerous areas were, but by garbage cans placed there by the street's residents. To my knowledge, PEPCO also does not have priority lists to restore power to buildings which have elderly or disabled residents. Senior citizens above the 6th floor (out of 12 floors) in our building were virtually isolated when the elevators went out together with the power. In addition, PEPCO could and should institute a better communications hub when faced by a critical situation. Even during the crisis, its customer service office closed at 2pm. Where were the rapid response teams over the weekend? It was a definite emergency that was treated almost casually, according to some witnesses. Public utilities in a crisis cannot operate on a 9 to 2, five days a week basis. And to CHARGE the consumers on top the abysmally bad service is appalling. Factor in also the financial loss connected with all the spoiled food lost by County residents in their refrigerators and freezers. If the politicos let this one slide with this slap in the face from PEPCO executives (not the rank-and-file) to County residents, they should get a comeuppance come Election Day 2014. Stop writing letters, DO SOMETHING. Check the task force report of 2011 and IMPLEMENT it.
Joe
11:10 pm on Wednesday, July 11, 2012
PEPCO and the Public Service Commission add injury to insult with the company not only cutting down hundreds of trees, and mangling hundreds of others, but then charging YOU, the customer in the dark, tossing out the contents of your fridge, with a fee so they aren't hurt by the loss of payment for power they didn't provide.
macadoodle
11:36 pm on Wednesday, July 11, 2012
Why don't the politicos, ranging from Gov O'Malley to Ike Leggett to County Council members to the Delegate and State Senate legislators in Montgomery County read the following article about the true state of affairs in PEPCO? And please check how little PEPCO pays in taxes and how much its executives make annually while cutting rank and file. CEO is getting a salary of $8 million a year.
http://crooksandliars.com/susie-madrak/ibew-local-pepco-power-outages-due-ch
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