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Potomac Edison, a subsidiary of FirstEnergy Corp., has submitted a proposal to the Maryland Public Service Commission requesting a rate adjustment totaling $52.8 million. This adjustment is intended to fund necessary investments in the company’s electric system, including infrastructure upgrades, grid modernization efforts, and projects aimed at enhancing overall reliability for its customers. If approved, the proposed changes would result in an approximate 5.3% increase to the average residential customer’s monthly bill.
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Despite the proposed increase, Potomac Edison asserts that its residential electric rates would continue to be the lowest among investor-owned utilities operating within Maryland. As of June 1, the company’s electric rates were reportedly 25% lower than the average rates of its in-state competitors. The proposed rate adjustment is specifically designed to support a reliability improvement program that focuses on upgrading electric system infrastructure and technology. This program is intended to build upon previous investments made by Potomac Edison in recent years, which aimed to enhance the robustness of the system and expedite power restoration in the event of outages.
The reliability improvement program would involve several key initiatives, including the installation of Supervisory Control and Data Acquisition (SCADA) technology to provide enhanced visibility into the electric system and facilitate quicker responses to issues by maintenance crews. Additionally, the proposal outlines the replacement of substation reclosers and the addition of circuit ties and automation to improve system flexibility and restoration capabilities. Efforts would also be made to upgrade overhead power lines through reconductoring and to replace aging underground cables. A significant component of the plan includes proactively removing more high-risk trees located near power lines, with a particular focus on preparedness for severe weather events. Potomac Edison serves approximately 295,000 customers across various parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery, and Washington counties in Maryland. The proposal’s implementation is contingent upon review and approval by the Maryland Public Service Commission, which includes opportunities for public input.
Article by Mel Anara, based upon information from FirstEnergy Corp.
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