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Hagerstown withdraws make‑whole electric rate filing after PSC spreadsheet error; staff to pursue full cost‑of‑service study
Summary
Utility staff told the council that a November make‑whole filing was reduced during PSC review and settlement negotiations; a PSC spreadsheet error further reduced the figure and led the city to withdraw the application. Staff plans a new cost‑of‑service review and will seek roughly $100,000 in consulting funds for that study.
City utility staff provided an update on the electric retail operating rate case at the April 7 work session. The city’s November make‑whole filing sought roughly $735,000; PSC technical staff’s review reduced adjustments to a $646,000 figure and settlement discussions produced a $477,000 number. A PSC spreadsheet error discovered just before a hearing recalculated the numbers to about $235,000, prompting the city to withdraw the application.
The presenter identified as "Mr. N." told councilmembers the PSC judge questioned the basis for a so‑called ‘‘blackbox’’ settlement that offered a single number without publicly documented calculations. Because of those concerns, the city withdrew the filing and intends to commission a full cost‑of‑service study using the latest audited financials.
Staff said the administration will come back seeking approval to contract GDS & Associates (and related consultant funds of about $100,000) to complete the study; once the cost‑of‑service work is complete staff will return with a recommended filing. No vote occurred at the work session.
Ending: Council members were informed of next steps: staff will seek authorization for consultant services and report back with cost‑of‑service results before a future filing.
