Vol74-12 December 2024

Update on 2024 base rate case filing

On May 1, 2024, SMECO filed a request with the Maryland Public Service Commission (PSC) to increase its Distribution Service base rates. Following the PSC’s full review process, the Public Utility Law Judge overseeing the case released a proposed order, which, as of this Cooperative Review’s printing, is expected to become final as of November 27, 2024.

Filing a rate increase is never a preferred option, but rising costs caused by inflation, price escalation, and investments necessary to meet the State of Maryland policies and legal requirements have outstripped the amount of revenue recovered through SMECO’s Distribution Service base rates. This financial gap puts SMECO in jeopardy of not meeting its obligations to lenders and limiting our ability to make necessary upgrades to the infrastructure and ensure reliable service.

The initial rate case filing requested a $37.9 million increase in distribution revenue, as well as additional rate design changes.

The PSC’s proposed order allows a $22.8 million increase in distribution revenue. The approved rates mean that a residential customer using an average of 1,100 kilowatt-hours (kWh) per month would experience an overall increase of 4.7 percent in their total monthly electric bill, which amounts to $7.95 per month. The new rates are expected to become effective for bills rendered on and after December 1, 2024.

For an update on the distribution rate case filing and additional details, please visit smeco.coop/straighttalk.