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Public Service Commission approves Pepco/Delmarva 'no‑check' tariff language despite OPC objections

Public Service Commission · July 9, 2026
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Summary

The Maryland Public Service Commission voted July 8 to accept revised tariff pages from Pepco and Delmarva Power that allow companies to place customers with repeated returned payments on a 'no‑check' (including e‑check) status for a rolling 12‑month period; the Office of People's Counsel urged denial citing burdens on low‑income and elderly customers.

The Maryland Public Service Commission on July 8 voted to accept revised tariff pages from Pepco and Delmarva Power that add a "no‑check accepted" status for customers who have two returned payments within a rolling 12‑month period. Chair Kumar Barve presided over the hearing and put the tariff for filing with an effective date of Aug. 3, 2026.

The filing, presented by staff member Alessandra Lee, describes the change as a corporate‑practice update tied to prior case work and recommends the commission accept the proposed tariff revisions. The utility group PHI — appearing through counsel Matthew Segers — told the commission the companies have added notice language and a convenience‑fee clarification at OPC's prior suggestion and that the first returned‑check fee is waived by the tariff.

"OPC opposes the no check status language because it will impose meaningful burdens on certain customers particularly low income and elderly customers," Morgan Le with the Office of People's Counsel told the commission, urging a show‑cause proceeding or formal investigation into whether companies previously implemented the restriction without prior commission review. PHI's counsel responded that the companies had provided data showing large dollar amounts associated with returned checks and that customers have alternatives such as kiosks, money orders and payment plans; Segers cited return‑check dollar totals in the millions as part of that explanation.

Commissioners asked staff and company representatives detailed operational questions: whether bank returned‑check charges are separate from company fees; whether the first returned‑check fee is automatically waived; whether template notices will make clear that placement on no‑check status lasts 12 months from the first returned check; and how the 12‑month period is measured. PHI confirmed that the tariff language and template letters will be updated to state the 12‑month limitation and that the companies' practice is to waive the first fee without customer request. Pepco's manager of credit and collections, Danielle Wright, explained the 12‑month clock starts with the first returned check and that kiosks, money orders and cashier's checks are available payment options.

After discussion, the commission voted to accept the tariff revisions. The record shows one commissioner recorded an abstention; the chair announced the motion carried. The commission and PHI staff also discussed adding a requirement that customers be told when they exit no‑check status.

The commission's order will set the effective filing date and include the record of the discussion; the docket will reflect staff and OPC filings and the utilities' template notices. The commission did not adopt a separate show‑cause or enforcement action at the hearing.