The PSC initiated a proceeding to investigate the reliability of Pepco's electric distribution system and the quality of the electric distribution service that Pepco is providing to its customers. County Executive Leggett formed the Pepco Work Group to study the causes of and solutions for the utility's frequent outages and their duration. The Work Group Report was submitted as testimony in Case 9240, staff to the Work Group (which included OCP) testified at the hearing, and Montgomery County submitted briefs in the proceeding.
The PSC found Pepco guilty of managerial imprudence and ordered a $1 million penalty.
In the next rate case, if Pepco intends to seek reimbursement for reliability expenditures, including Enhanced Integrated Vegetation Management (EIVM) costs, equipment upgrades, or other parts of its Reliability Enhancement Plan (REP) expenses, made in 2011 or 2012, the Commission will take testimony addressing the amount of expenditures that is larger due to Pepco's imprudence and will disallow recovery of that increment.
In response to criticisms and concerns raised by the public on the reliability of electric utilities, the PSC initiated a Rule Making No. 43 (RM 43), to create or modify reliability and service quality standards for utilities. OCP participated in the Work Group the PSC created to consider these regulations, submitted comments and testified at the hearings to consider the proposed regulations. They went into effect on May 28, 2012 .