Politics & Government
Legislation Calls for Refunds From Underperforming Utilities
With the legislation, utility companies that underperform would have to give payment back to the ratepayers.
State legislation introduced Thursday would institute reliability standards for Maryland utilities—a move made in the wake of more than 100,000 customers in Pepco customers losing power during last week’s snow storm.
The legislation, which is sponsored by Del. Brian Feldman (D-Dist. 15) of Potomac and Sen. Thomas Middleton (D-Dist. 28) of Waldorf, would allow the Maryland Public Service Commission to fine utility companies for poor performance and funnel payments back to affected ratepayers.
“Hundreds of thousands of Marylanders have lost confidence in the ability of their utilities to provide reliable electric service,” Feldman said in a statement. “They are looking to their elected officials to step up and take action.”
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The legislation would require the Public Service Commission to determine the reliability standards by July 1, 2012. The standards would address concerns such as service interruption, downed wire repair and service quality.
The legislation would also require utility companies to report if they met the standards. If companies fall short of the standards, they could face fines for noncompliance. That money would be returned to ratepayers.
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“The best way to ensure our utilities keep their promise to provide reliable and timely service is through tough reliability standards with serious penalties for nonperformance,” Middleton said in a statement.
The Public Service Commission reported earlier this week that Pepco had been charging customers since 2007 for service it never provided during power outages.
County Councilman Roger Berliner (D-Dist. 1) of Potomac, who helped draft the legislation, on Wednesday to form a restitution fund.
“Other states have standards – if you don't turn the power on in a certain number of hours, we are going to penalize you,” Berliner said on Wednesday. “[The proposed law] will set standards of responsibility and hold them financially accountable. If you don't hold them financially accountable, forget it, they're not going to do it.”
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