Potomac Edison Files Rate Review to Help Support Continued Service Reliability

Rhea-AI Summary

Potomac Edison, a subsidiary of FirstEnergy Corp. (NYSE: FE), has filed for a $44 million electric rate adjustment with the Maryland Public Service Commission. This adjustment is aimed at enhancing service reliability through grid upgrades and maintenance. If approved, the average residential customer using 1,000 kWh monthly would face a 9.7% increase, approximately $9.50 more per month.

The filing supports ongoing investments in infrastructure and customer assistance initiatives. Potomac Edison intends to maintain the lowest rates among Maryland’s regulated utilities, even as it serves an additional 20,000 customers since the last review.

Positive

• Proposed $44 million rate adjustment aimed at modernizing infrastructure.
• Continued commitment to service reliability with significant upgrades.
• Existing rates remain the lowest among Maryland's investor-owned utilities.
• Introduction of customer assistance programs for low-income households.

Negative

• Average residential customer's rate increase of 9.7% or $9.50 monthly.
• Challenges posed by an increase in electricity demand due to local population growth.

Residential Rates to Remain Lowest Among Maryland's Investor-Owned Regulated Electric Utilities

WILLIAMSPORT, Md., March 23, 2023 /PRNewswire/ -- Potomac Edison, a subsidiary of FirstEnergy Corp. (NYSE: FE), has requested a review of its base electric rates by the Maryland Public Service Commission (PSC). The proposed $44 million rate adjustment builds upon the strong service reliability enhancements made in recent years by adding additional energy grid equipment upgrades and providing ongoing tree trimming, inspections of lines, poles and substations and maintenance for newly installed equipment that enhances and modernizes the electric system.

Upon approval of the base rate adjustment, Potomac Edison customers would continue to pay the lowest electric rates among Maryland's investor-owned regulated electric distribution companies. The average Potomac Edison residential customer using 1,000 kilowatt hours per month would see a 9.7 percent overall rate increase – or $9.50 monthly.

"As the demand for electricity continues to increase with population growth in Potomac Edison's Maryland service area, continued investments in a smart, modern energy grid will help us deliver on our commitment to providing dependable electricity to homes, businesses and communities," said Linda Moss, president of Maryland operations. "This rate proposal balances our need to invest while keeping electric bills affordable for our customers."

Potomac Edison has grown significantly in the last five years, now serving approximately 20,000 more customers than it did during its last base rate review. The company currently provides power to about 285,000 customers in all or parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington counties. Potomac Edison also serves about 151,000 customers in the Eastern Panhandle of West Virginia who would be unaffected by the rate review.

The rate review complies with a 2019 PSC order requiring Potomac Edison to file a new rate plan by 2023 at the end of its first Electric Distribution Investment Surcharge (EDIS). As part of this rate review, Potomac Edison is requesting a second phase of EDIS to build on the measurable success of investments made in phase one. For example, with the completion of several distribution automation projects which allow personnel to automatically switch customers to an adjacent power line during an outage, Potomac Edison has prevented about 9,300 customer interruptions and avoided 1.3 million minutes of outages that would have happened prior to automation four years ago.

The rate review proposes completion of Potomac Edison's plan to install 68 reclosers at substations throughout the service territory to help minimize the number of customers interrupted by outages. By the end of 2023, the company will have installed 50 reclosers that allow crews to isolate a problem on one portion of a power line while keeping electricity flowing through the remainder of the line. The remaining 18 recloser installations are proposed for completion in 2025 and 2026.

In addition, the rate review supports continued proactive replacement of aging underground cable with a more reliable type of cable. Building on the 206 miles of cable replaced in the last four years, the company would replace 50 miles of cable annually until the remaining 972 miles of cable is completed.

To support customers who struggle with their electric bills, the rate review also proposes the launch of two new customer assistance initiatives. One program will provide a 50% monthly discount on distribution charges to eligible low-income residential customers during the five-month winter heating period between November and March. In addition, an Energy Assistance Outreach Team will be created to increase awareness and participation in energy assistance programs available to low-income customers.

Finally, the rate review seeks to recover costs associated with Potomac Edison's PSC-approved EV Driven program. EV Driven supports a state-wide goal of reaching 300,000 zero-emission vehicles on the road by 2025. To make electric vehicle adoption more accessible and convenient in Maryland, Potomac Edison has installed 35 public charging stations. Twelve more public charging sites are in the construction phase, and 12 are in the design or pre-design stages.

Potomac Edison continues efforts to keep costs manageable for customers. To help customers manage their bills, Potomac Edison offers an average payment plan, special payment plans and access to energy assistance programs. For more information, please visit www.firstenergycorp.com/billassist. To learn more about energy efficiency products and programs to help save money, visit www.energysavemd.com.

The public is invited to comment on the filing through the Maryland PSC's public comment process, and Potomac Edison will participate in public meetings about the plan and engage key stakeholders to ensure an open and thorough review of the proposal. The company expects that the new rates will be effective by October 19, 2023.

Investor Note: For additional information on the filing, visit the new IR - Regulatory Corner in the "Investor Materials" section of the FirstEnergy website at http://investors.firstenergycorp.com.

Follow Potomac Edison at www.potomacedison.com, on Twitter @PotomacEdison, and on Facebook at www.facebook.com/PotomacEdison.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its 10 electric distribution companies form one of the nation's largest investor-owned electric systems, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at www.firstenergycorp.com and on Twitter @FirstEnergyCorp.

View original content to download multimedia:https://www.prnewswire.com/news-releases/potomac-edison-files-rate-review-to-help-support-continued-service-reliability-301779802.html

SOURCE FirstEnergy Corp.

FAQ

What is the proposed rate adjustment amount for Potomac Edison?

Potomac Edison has proposed a $44 million rate adjustment.

How much will residential customers' bills increase?

Residential customers can expect an average increase of 9.7%, equivalent to $9.50 monthly.

When will the new rates take effect?

The new rates are expected to be effective by October 19, 2023.

What customer assistance programs are being launched?

New programs include a 50% discount on distribution charges for eligible low-income customers during winter.

How has Potomac Edison’s customer base changed?

Potomac Edison now serves approximately 20,000 more customers than during its last rate review.