The following information was sent to us by Neil H. Greenberger:
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Montgomery County Executive Isiah Leggett and County Council President Roger Berliner said today that the County supports the $1 million initial fine issued to Pepco by the Maryland Public Service Commission (PSC) and that Montgomery County will continue to advocate on behalf of ratepayers.
County Executive Leggett and Council President Berliner said in a joint statement that the PSC made critical findings that Pepco?s service has been unreliable, that larger fines or penalties would be justifiable and that customers should not bear the cost of the improvements that Pepco needs to make because of its imprudence.
They went on to say the following:
?Montgomery County was instrumental in prompting the Public Service Commission to initiate this investigation into Pepco?s reliability. The Commission appears to have clearly heard the outcry from Montgomery County?s elected officials and customers and ruled in our favor on virtually every key finding.
?This was the first time Montgomery County provided extensive intervention in a case before the Public Service Commission. The PSC?s ruling in this case was clearly influenced by Montgomery County retaining a Special Counsel, establishing a Work Group to prepare recommendations and having County staff testify at a hearing.
?In issuing a $1 million fine, the PSC rejected Pepco?s excuses and stated that a larger fine or other additional penalties may be justifiable. More importantly, the PSC stated that it will not allow Pepco to charge customers for Pepco?s ?imprudence? in future rate setting cases. The Commission also stated that additional penalties may be imposed if Pepco does not improve its reliability.?
Montgomery County?s Work Group submitted a comprehensive report and the PSC adopted most of the Work Group?s recommendations including:
?????????Require Pepco to execute a multi-year plan for inspecting its distribution system.
?????????Create an ombudsman within Pepco to create a more customer-oriented culture and improve its pure communication with customers.
?????????Impose penalties to send a message to Pepco.
?We are grateful for the work of the Maryland People?s Counsel,? County Executive Leggett and Council President Berliner went on to say, ?and we believe the direct input from Montgomery County in this case was critical given the gravity of the situation.
"Our County has been asking the Commission to hold Pepco accountable?financially and in terms of service quality. ?We believe that this order represents a major step in that direction and commend the Commission for doing so.?
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?The Commission has stated that it would not put the burden of Pepco's reliability expenses solely on the shoulders of ratepayers. ?That was a key request of the County, and we will expect the Commission to honor that pledge in Pepco's recently filed rate case.
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?On almost every key recommendation made by the County?on finding Pepco imprudent for allowing its system to deteriorate to this state; on holding that Pepco failed to perform vegetation management properly; and in ruling that Pepco's communications with customers was inadequate, the Commission ruled in favor of the County and against Pepco. ?
?While we expect Pepco will continue its efforts to improve service, we are gratified that the Commission has made it clear that further fines will be forthcoming if they fail to do so.??
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