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Smackdown! Round Three - The Bankruptcy Court vs. FERC

The jurisdictional battle over authorizing rejection of wholesale power contracts continues.

Fortnightly Magazine - April 2006

that the local regulatory agencies have no practical choice but to allow Pepco to recover any lost revenues through higher rates. As explained above, the potential effects on retail rates and Pepco’s financial condition have not been substantiated as to relative significance. More significantly, while protestors have argued that the local regulatory agencies would be likely to approve rate increases, such a decision is not a certainty. The chairman of the Maryland commission indicated that while the Maryland commission would strongly consider any request by Pepco to recover unpaid purchased power costs from its customers, it would have to hold a formal proceeding to address many factors before acting on Pepco’s request, if one is made.

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