More PEPCO Commentary - WTOP

I write a lot about PEPCO's failings as a provider of a basic necessity in modern life, electricity. This is the fourth state I've lived in and in the almost 20 years living in Maryland, I've never experienced such pitiful service for soooo much money. PEPCO is arrogant, smug, and only cares about keeping its billions of dollars in profit. If people don't stand up and complain and keep complaining, they will go their merry way.

Here is a good summary from WTOP's Chris Core (email: ccore@aol.com). Highlight is mine.

PEPCO’S PROFITS

Posted on: July 30th, 2012 by Chris Core

It was recently pointed out to me that my electric company, PEPCO, made nearly a billion dollars in profits from 2008-2010. Amazingly, for those three years, PEPCO paid no state or federal income taxes. In fact, it received over $800 million in tax refunds. Just like General Electric, PEPCO took advantage of various write-offs and loopholes to shield its income from Uncle Sam (and Cousin Peter Franchot).

What PEPCO did was perfectly legal and probably would not have come to public attention except for the fact that the vast majority of its customers are, shall we say, a tad dissatisfied with the service PEPCO provides.

PEPCO is a monopoly, a public utility that has its rates set by the state. Recently it was granted a rate increase, though not one as large as it had wanted. PEPCO has been grumbling about this snub ever since.

Here is what I don’t understand. Since PEPCO is such an enormously profitable enterprise despite its horrible track record, isn’t it ripe for a take-over? Doesn’t it seem logical that another electric provider like Virginia’s Dominion Power (which seems to provide vastly superior service to its customers) would be licking its chops to get its hands on PEPCO’s customers?

A friend of mine suggested that the state of Maryland should buy the company’s infrastructure and turn it into a public utility like the WSSC. He pointed out that the WSSC is seldom in the news for massive water outages. He calculated that the income generated by selling electricity could offset the need for some state taxes.

It’s an interesting idea, but I prefer the market-place approach. So, let me post this notice in The Examiner:

HELP WANTED: An electricity-supplying enterprise to provide service to Washington D.C. and its Maryland suburbs. Great compensation and benefits package. Applicant must have exceptional track record of performance. Please send resume to “Disgruntled PEPCO Customers”, Washington D.C.

(Note to the Examiner executives: Can you make sure a copy of this notice is sent to a Mr. W. Buffett in Omaha, Nebraska? I’ve heard he knows a good deal when he sees it.)

Power to the people is a Core Value.

Source:
http://central.washingtonexaminer.com/chris-core/2012/07/30/pepcos-profits/