Pepco Plan May Ease Bite, For Now

The plan is virtually identical to one the state legislature had been considering before it adjourned April 10 without an agreement -- though this time, Pepco included a provision that allows the company to back out if the Maryland General Assembly passes legislation that the company believes could impact its rates.

Del. Dereck E. Davis (D-Prince George's), a lead negotiator of a relief package that passed the House of Delegates, said the Pepco plan is "a good plan for consumers who really need relief now."

"But I would also caution ratepayers: Only enter into this mitigation plan if you really have to," Davis added, "because you're still going to pay for it on the back end. We're all going to feel the pinch."

The plan has one clear benefit for the governor: It defers much of the pain of utility bill increases until after November, when he will be up for reelection. And one of his potential opponents, Montgomery County Executive Douglas M. Duncan (D), was quick to question the deal.

Duncan said it "falls way short and still leaves consumers left holding the bag."

Ehrlich said he expects the Public Service Commission to approve the agreement, possibly as soon as next week. If the plan is approved, Dobkin said the company will reach out to customers to let them know the option is available to them, either on Pepco's Web site, by letter, or both.

Tom Hucker, executive director of Progressive Maryland, a consumer advocacy group, said he is concerned that the opt-in provision could wind up hurting some of those who could most benefit from what amounts to a no-interest loan from Pepco.

"Opt-in provisions are always the hardest on low-income families, on those without Internet access, on non-English speakers, the elderly, the disabled, because they are more likely to be left out of a public information campaign," Hucker said.

Meanwhile, Ehrlich said talks with the state's other large power company, Baltimore Gas and Electric, were continuing "almost around the clock." The governor has pledged to reduce a planned 72 percent increase facing the company's 1 million residential customers in Maryland.

"We're continuing to make a lot of progress," Ehrlich said.

Rob Gould, a spokesman for BGE's parent company, said Pepco's agreement puts no additional pressure on those talks.

"We've been committed to get an agreement and have the same desire today," Gould said. "This doesn't change that."

The electricity rate surges have become lively fodder on the campaign trail for governor.

This week, Duncan called for new rate caps, saying a 1999 law intended to foster competition in the industry had proved a failure. His opponent in the Democratic primary, Baltimore Mayor Martin O'Malley, is slated to announce what aides describe as a comprehensive energy package tomorrow.

The mayor has urged the Public Service Commission to review the legality of rate increases already being absorbed by BGE "budget-billing customers."

Some of those customers, whose monthly bills are adjusted to avoid spikes during periods of high consumption, have already had higher rates, even though other customers are not slated to pay them until July.