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Pepco Customers Tell PSC Tales of Feeling Powerless After June Derecho

Days without power, air conditioning or answers had customers at a hearing on Tuesday calling for changes to the utility—and to the panel that regulates it.

 

 

Bearing photos, frustration and rage, wry humor, harrowing tales of surviving record heat and even poetry, Montgomery County residents railed against Pepco for more than four hours Tuesday night during a hearing before members of the state’s Public Service Commission.

The hearing in Rockville was the first of eight that state utility regulators have scheduled around the state to hear from the public about power companies’ performance after the June 29 derecho.

The storm left 483,639 Pepco customers without power, including 252,018 in Montgomery County and 158,210 in Prince George’s, the utility reported last month. About 150 of those customers attended Tuesday's hearing.

Among those who testified was a multiple sclerosis sufferer who said he and his wife ran up four days of hotel and meal expenses as they sought relief from triple-digit temperatures, which exacerbated his condition.

Other testimony came from Stacy Small-Lorenz who said she lost a three-day supply of breast milk for her 6-month-old baby and was forced to travel to Ohio to stay with family after being without power for six days.

Also among the speakers were several past and present elected officials who offered recommendations for overhauling Pepco.

“The derecho is only the latest in a string of outages, from ongoing blue sky outages to the more catastrophic hurricanes, ice storms and snowpocalypses of the last 10 years,” former Rockville Mayor Susan Hoffmann testified. “These outages have continued to chip away at any possible reservoir of goodwill that we, as consumers, might have had for our electric companies.” 

Hoffmann called for the Public Service Commission to “step up” and to consider adding three additional members, including two “lay people” to represent customers and a representative from one of the state’s smaller electric companies.

PSC Chairman Douglas R. M. Nazarian and commissioners Lawrence Brenner and W. Kevin Hughes attended Tuesday’s hearing. Commissioners Harold D. Williams and Kelly Speakes-Backman were absent.

“While each of you has a fine resume, some of you even come from the world of public utilities, perhaps you are too close to the issue, know too much, in fact, and may have unwittingly become apologists for the very utilities you regulate,” Hoffmann said. “Whatever the reason, Maryland needs a more responsive Public Service Commission.”

Robert Hydorn, president of the Montgomery Village Foundation Board of Directors, testified that even with underground power lines, Montgomery Village had neighborhoods of more than 1,000 homes that were without power from the night of the storm on Friday, June 29, until the following Friday afternoon.

“Pepco has had to over the years—instead of paying whatever salaries they’re paying and bonuses they’re paying—invest in the infrastructure,” Hydorn said.

Pepco must stop extending the power grid, “whether it be Clarksburg, or over off [Route] 29 or new developments and high-rises on Rockville Pike,” Hydorn said. “That is all drawing off an antiquated infrastructure of grids.”

Marnie Shaul read a letter from the council of the Town of Somerset in Chevy Chase, of which she is vice president. The council made several recommendations, including reviewing Pepco’s communications technology, requiring that problematic power lines be buried and using fines against Pepco to establish a “surge reserve” corps of additionally trained service crews to respond to outages—a plan proposed by Senators Brian E. Frosh (D-Dist. 16) of Bethesda and James C. Rosapepe (D-Dist. 21) of College Park.

Lynn Board, the Gaithersburg city attorney, spoke on behalf of the Gaithersburg mayor and City Council, which were attending National Night Out festivities.

Board said the city was concerned about communication, including the lack of accurate information, which made it difficult for the city to identify residents still without power amid unhealthy hot temperatures. Adding to the frustration, Board said, were residents who were told by Pepco that power had been restored to their neighborhood when it had not.

Testimony from residents included photos and poetry.

Judith Koenick of Chevy Chase presented photos of trees that were left with odd shapes after pruning by Pepco.

“I don’t think you can find any arborist who is worth his or her grain of salt that can tell you that this is how you trim a tree,” she said, holding up three photos of trimmed trees that left audience members with a view chuckling. 

C. Ellis of Potomac called himself “Ellis in Wonderland” and read a poem about being without power.

“Montgomery County is a nice place to be/Unless you like electricity,” he recited.

Ellis prefaced his testimony by saying that he grew up in England after World War II. “We had bomb craters, but we had power,” he said. “My wife grew up in the former Soviet Union. They had communism, but they had power." 

Customers expressed frustration about poor customer service during the outages and bafflement at how Pepco was recently granted a rate increase. 

In July, the PSC approved $18 million of a $68 million rate increase requested by Pepco. The increase will mean a $2.02 increase (1.69 percent) to the typical residential monthly bill.

Ed Levine of Bethesda was one of several speakers to question why Pepco received any rate increase.

He also criticized a “bill stabilization” adjustment that allows utilities to collect billings for the first 24 hours after a power outage, effectively charging customers for power when they have none.

“How do you charge me for the six-and-a-half days that I didn’t have power?” Levine said.

Pepco revenue was down 17 percent in the second quarter of 2012, down 17 percent from a year ago, Washington Business Journal reported. That’s even before factoring in the June 29 storm, which won’t hit the utility’s bottom line until the third quarter, the Business Journal reported.

The utility’s revenue was $1.2 billion for the quarter, with $62 million net income, down from $94 million a year ago, the Business Journal reported. Pepco cited higher expenses for the losses.

The problem of restoration is that as Pepco’s system has grown, its workforce of line crews has not, said James Griffin, president of the International Brotherhood of Electrical Workers Local 1900, which represents 1,150 Pepco employees.

Griffin said he is the fourth consecutive IBEW Local 1900 president to report concerns about understaffing of line mechanics. He cited an October 1999 report to the PSC in which he said Pepco reported deploying 312 crews after a June 1996 storm and 318 after Hurricane Floyd in 1999.

“These were Pepco crews, not contractors,” Griffin said. Since then, Pepco has tried to supplement its own crews with out-of-state contractors who come and go, don’t know the system and sometimes take several days to arrive.

In April, Pepco had 123 line mechanics and 21 trainees, Griffin said.

“Very simply, had there been an adequate number of Pepco line mechanics available today, compared to years past, Pepco would’ve been able to start repairing more of this storm’s damage sooner,” he said.

Andrew Kavounis, an 87-year-old World War II veteran, said the answer is not “beating to death” Pepco.

“What we should be concerned about is what’s wrong, not who’s wrong,” Kavounis said.

The biggest problem is the trees, he said, adding that only dwarf trees should be planted near power lines. Most people haven’t focused on such problems, he said.

“We haven’t established what’s wrong,” he said. “We’ve only said how much we’ve hurt.”

Related Topics: Montgomery County, PEPCO, Power Outages, Public Service Commission, and derecho

Theresa Defino

8:32 am on Wednesday, August 8, 2012

Great story, Sean. This is the kind of work I have hoped for from Patch! You had a good selection of speakers and laid out many of the issues. I agree with Mayor Hoffmann.

I thank you also for not just quoting folks upper income individuals...this storm most hurt those who don't have the money for a hotel, don't have generators, don't have other resources to cope with events like this and don't have the energy (or desire) to make this into a general rant and post it on youtube.

There's a dangerous under-current of Tea Party rhetoric in a lot of the discussions I've been hearing. That should be ignored.

Specific proposals based on facts and research, with changes imposed after careful consideration, is the appropriate way to go when dealing with an essential service like the delivery of electricity.

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Sean R. Sedam

1:15 pm on Wednesday, August 8, 2012

Thanks for the kind words, Theresa.

Don O'Neill

9:05 am on Wednesday, August 8, 2012

Why was there no mention of the Smart Grid Initiative by officials or residents?

Smart Grid refers to a combination of technologies that can be utilized in energy transmission, distribution and end use, that enables a more reliable and efficient delivery of electricity. The U.S. Department of Energy’s Office of Electricity Delivery and Energy Reliability sponsors the stewardship of the Software Engineering Institute’s Smart Grid Maturity Model (SGMM). The audience for the SGMM is the worldwide electric utilities industry intent on modernizing and improving the operations and practices associated with delivery of electricity and focusing on transmission and distribution.

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Sean R. Sedam

1:36 pm on Wednesday, August 8, 2012

Thanks for outlining what the Smart Grid is all about, Mr. O'Neill. I'll have a shorter post later today in which a Pepco vice president mentions the utility's technology upgrades, which include the much-debated Smart Meters. In the meantime, for those looking for more background, there's this: http://rockville.patch.com/search?keywords=Smart+Meters

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Stacy Small-Lorenz

11:27 am on Friday, October 19, 2012

At least 2 residents did mention Smart Grid technologies in their testimonies, including myself.

John

5:11 pm on Wednesday, August 8, 2012

We were without power, today, when just a little thunderstorm hit. It seems almost every time there is a thunderstorm, we lose power, which even momentarily, is dangerous, when you have HD TV's, even if they are connected to surge protectors. Also, if you are away, when power is lost, your FIOS TV service does not automatically come back on. You have to re-set it. So, if you are away, say on vacation, you can miss programs, which you like, which you have scheduled to be recorded. This is a minor inconvenience, I'll agree, but continually losing power is very inconvenient, and if it last long, it is causes more serious problems. PEPCO, to me, is awfu. I can't believe the Maryland Public Service Commission allows PEPCO to operate the way it does. Also, Governor O'Malley seems to go along with the Public Service Commission; he doesn't appoint members to the Public Service Commission who will get tough on PEPCO. I am fed up with everything about PEPCO, the Public Service Commission, and the Governor's inaction toward PEPCO.

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Bruce Bernstein

6:32 pm on Wednesday, August 8, 2012

Good summary article.........
However, the contents focus essentially completely on the complaints/anger,and there is no mention of the specific new (technical) suggetions/approaches toward a solution (Stan Klein/smart meters, and Bruce Bernstein (outside expert analysis of the entire system)

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Sean R. Sedam

6:40 pm on Wednesday, August 8, 2012

Mr. Bernstein: Thanks for your comment. Unfortunately the speakers you mention were late in the hearing and deadline constraints prevented their inclusion here. (Please see my response to Mr. O'Neill above.)
Could you provide for readers a summary of what you presented?

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Bruce Bernstein

4:13 pm on Tuesday, August 14, 2012

Not sure my earlier response was received..I did not pick up you note until 8/14.
I provided my comments to the recorder.They are also on my hard drive. I can forward them to an appropriate e-mail address..(OK?)
Also,not to speak for others, but Mr,Klein did talk about the Smart Grid.
What I am wondering about now is whether the entire procediings will be availabe in writing or on TV??

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Sean R. Sedam

4:43 pm on Tuesday, August 14, 2012

Mr. Bernstein: You can cut-and-paste your comments here. (It might take several comment windows.) Or feel free to email them to me at sean.sedam@patch.com.
Also, I believe Mr. Nazarian said transcripts of the hearings would be available. I have an email into the PSC asking how to get copies and/or if video of the hearings will be available. I'll let you know when I hear something. Thanks for the comment and questions.

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Sean R. Sedam

5:53 pm on Tuesday, August 14, 2012

You can find video of the hearing here: http://www6.montgomerycountymd.gov/csltmpl.asp?url=/content/council/ondemand/index.asp
The hearing on Pepco on Sept. 13-14 at PSC headquarters in Baltimore will be streamed live here: http://webapp.psc.state.md.us/Intranet/pscnews/video_new.cfm
Regina Davis, a PSC spokeswoman, tells me that the commission does not archive hearings held in their hearing room. But transcripts, including of the hearing in Rockville, are available here:
CRC Salomon
9515 Deereco Road, Ste. 200
Timonium, MD 21093
410-821-4888
Toll free: 888-821-4888
fax 410-821-4889
Note Case No: 9298, and the date(s) of proceedings for which transcript(s) are requested.

Don O'Neill

11:37 am on Thursday, August 9, 2012

More than smart meters, the Smart Grid Maturity Model (SGMM) is designed to stimulate compliant adoption and rollout of industry best practices. The SGMM is short on systems engineering and innovation but long on management and planning.

The SGMM levels include:

L1 Initiating and Exploring

L2 Enabling Functional Investing
L3 Integrating Cross Functional

L4 Optimizing Enterprise-Wide
L5 Pioneering Innovative Next-Wave Improvement 
 


The SGMM levels are matched against a set of domains. Its eight domains include:

D1 Strategy Management and Regulatory 

D2 Organization and Structure

D3 Technology 

D4 Societal and Environmental

D5 Grid Operations

D6 Work and Asset Management

D7 Customer Management and Experience 

D8 Value Chain Integration

The question here is where does Pepco stack up against the SGMM criteria?

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Demosthenese

9:38 am on Saturday, August 11, 2012

PEPCO is like all Utilities, a predator that preys upon a captive supply of victims. It's the PSC's hi. To protect is and restrain it. The PSC has failed completely for decades to see thru PEPCO's BS and restrain is profits unless it invests in infrastructure and improved service. Either the PSC is incompetent or it is corrupted. In either case it is folly to think for one moment that the same group can bring PEPCO to heel. The Governor must fire the lot of them and replace them with people with NO TIES to public utilities. Otherwise nothing will change.
I suggest also that legislationbe enacted to install power killing switches to the private residences of all PSC Members and PEPCO Execs, and to deny them permits to install any form of backup power. These switches should kill their power anytime more than 5% of PEPCO customers are without power. When their families are sweating I the dark you can bet they will get the point.
As for "Smart" meters,they are nothing more than a way for PEPCO to increase revenue while decreasing service. None of them should be installed anywhere!

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SARAH ISSA

10:57 pm on Tuesday, August 14, 2012

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