A struggle is underway for ownership of the utility business. Not a fight between companies, but a struggle within each company for the future of the utility.
The battle pits two...
Potomac Electric Power Co. says merger delays are costing it money and it's asking the Maryland Public Service Commission to approve a rate increase.
PEPCO says savings achieved from its proposed merger with Baltimore Gas and Electric Co. would have absorbed the increased costs. The merger would form Constellation Energy.
The rate increase would be only for the utility's Maryland customers.
"Due to the delay of our pending merger, we remain a 'standalone' company, faced with certain cost increases that have not been offset by savings that the merger would produce," said Dennis Wrasse, PEPCO senior vice president and CFO.
PEPCO has asked to increase revenues by $64 million (7 percent), but also has filed for an immediate $43 million (18 percent) decrease in its fuel charge, to offset the proposed increase. It asked that part of the $64 million hike, $31 million, be added to rates immediately through a temporary surcharge. The surcharge would recover the costs it has paid since January for a 230-megawatt power purchase contract approved by the PSC. (em LAB
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