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Posted at 8:07 PM ET, 02/ 7/2011

Pepco faces criticism from Montgomery County Council

By Michael Laris
Montgomery County

Pepco executives were sharply criticized by the Montgomery County Council on Monday during a far-reaching post-thundersnow scolding that at times took on the demeanor of a prosecution.

Council members accused Pepco of lavishing its shareholders with dividends while spending too little on maintenance.

Pepco's widespread outages after the recent storm show how the basic agreement between the firm and the public has crumbled, said council member Roger Berliner, himself an energy lawyer.

"While Pepco has its monopoly and its shareholders have earned what I believe to be an inappropriate return, our residents have not gotten their end of the bargain - reliable service and effective regulatory oversight," Berliner said.

"Instead, we have a public utility that allowed its system to degrade over many years to the point where the service, on sunny days, is the worst in the state, worst in the region, and has been in the lowest quartile in the nation for years," he said.

Company representatives, lined up at a table before the council dais, repeatedly said they are making progress on a multi-year plan to improve the utility's reliability.

Pepco officials said company dividend figures cited by council staff -- more than $1 billion over five years, according to council research -- were too expansive, because they included other parts of Pepco's broader holding company. Moreover, they said, paying dividends helps attract the investors who help fund needed improvements.

The company executives will face the Prince George's County Council on Tuesday.

By Michael Laris  | February 7, 2011; 8:07 PM ET
Categories:  Michael Laris, Montgomery County  
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why ouncil even have these meetings? It's a complaining session that has absolutely no effect other than maybe make the councilmembers feel they are not totally useless on this issue. If the council could actually do something about improving Pepco's performance then why haven't they done it? According to Leventhal, only the state can do anything about this. So please council, use the council time on issues where you could actually do something. Your bashing on Pepco does not help anyone here.

Posted by: gromero1 | February 7, 2011 6:46 PM | Report abuse

This is just political theater. On the other hand, if the council really wanted to do somethings that might make it easier for us consumers, they could: ease the rules and make it easier for PEPCO to trim or cut down trees, ease the rules to make it easier for homeowners and businesses to install their own solar, wind, or geothermal systems.

Posted by: VikingRider | February 8, 2011 1:43 PM | Report abuse

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