Pepco Proposes Increase In Stages

Commission Meets On Plan Today

Pepco, the principal supplier of electricity to Montgomery and Prince George's counties, said last night that it has agreed on a plan to phase in the major rate increase planned for June.

The agreement appeared to offer relief to hundreds of thousands of residents of the counties, who have been facing a 38.5 percent increase, estimated at $468 a year.

Under the phase-in plan, customers would eventually have to pay the full deferred amount, said Mary-Beth Hutchinson, a spokeswoman for the utility. But, she said, they would not have to pay interest on it.

She said the plan was the same as the one the state legislature had been considering before its adjournment.

The state Public Service Commission must still approve the agreement, Hutchinson said.

However, she said, it was significant that the commission's staff endorsed the agreement.

Since the staff works with the parties involved on behalf of the commission, "we are hopeful that this will be approved," Hutchinson said.

The PSC is to meet today. Members could not be reached for comment last night.

Also agreeing was the Office of People's Counsel.

Under the agreement, Hutchinson said, customers who chose to join the plan would pay an increase of 15 percent starting June 1, followed by increases of 15.7 percent on March 1 of next year and the rest starting June 1 of 2007.

Customers would be allowed 18 months, starting June 1, 2007, to pay the amount that had been deferred.

Hutchinson said the agreement also involves Delmarva Power, which serves the Eastern Shore, but not Baltimore Gas and Electric.

The proposed increases have become a major political issue in state elections this year.