Potomac Edison rates increase for November

September 27, 1994|By From Staff Reports

The average Potomac Edison customer will see a $3.71 rate increase on the November utility bill, rather than the $8.63 requested in April, company officials said yesterday.

Potomac Edison, which serves about 9,400 customers in Carroll County, has said a residential customer who uses 1,000 kilowatts of energy a month will now pay $74.46 each month rather than $70.75.

Company officials won the increase -- the fifth requested this year -- by arguing that it was necessary to help pay for a scrubber system on its coal-burning power stations in West Virginia. The scrubbers were required by the federal Clean Air Act.

Also, officials said residential customers should pay the largest part of the increase -- 15.86 percent compared with 8 percent to 12 percent for business customers -- because they weren't paying what it costs to serve them.

But when residential customers and the Maryland People's Counsel complained at public hearings last month, Potomac Edison submitted a settlement requesting a lower increase.

The People's Counsel is an agency that represents the interests of residential customers in rate cases.

Potomac Edison will now receive a net increase of $14.6 million, rather than the $30 million it had requested. The approved increase incorporates a 98-cent Clean Air Act Amendment surcharge customers have been paying since March for the scrubbers.

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