Potomac Edison Proposes Rate Adjustment to Support Electric System Reliability

Potomac Edison (FirstEnergy, FE) has proposed a $52.8 million Maryland rate adjustment to fund continued investment in its electric system and reliability upgrades.

Rhea-AI Summary

Potomac Edison (FirstEnergy, FE) has proposed a $52.8 million Maryland rate adjustment to fund continued investment in its electric system and reliability upgrades. The plan would raise the average residential customer’s monthly bill by about 5.3%.

The company states that, even with this increase, its residential rates would remain the lowest among Maryland investor-owned utilities, and as of June 1 were 25% below the in‑state peer average. Funds would support grid modernization, targeted pole and line upgrades, smart grid and SCADA technology, substation equipment replacements, additional automation, and expanded tree-clearing near lines. The proposal requires review and approval by the Maryland Public Service Commission before taking effect, including opportunities for public input.

Positive

• Proposed $52.8 million rate adjustment to fund grid and reliability investments in Maryland
• Average residential bill impact limited to about 5.3% while rates would remain lowest among Maryland investor-owned utilities
• As of June 1, Potomac Edison’s residential electric rates were 25% below the average of its in-state peers
• Program targets system upgrades including smart grid, SCADA, reconductoring and underground cable replacement to improve reliability

Negative

• Average residential customer bill would rise by approximately 5.3% if the proposed rate adjustment is approved
• The rate adjustment is not yet effective and must be reviewed and approved by the Maryland Public Service Commission

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Residential electric rates would remain the lowest among Maryland investor-owned utilities

WILLIAMSPORT, Md., Sept. 4, 2026 /PRNewswire/ -- Potomac Edison, a subsidiary of FirstEnergy Corp. (NYSE: FE), is proposing a Maryland rate adjustment to support continued investment in the electric system, including upgrades to aging infrastructure, grid modernization and projects designed to strengthen reliability.

The proposed $52.8 million rate adjustment would increase the monthly bill for the average residential customer by approximately 5.3%. Even with the proposed adjustment, Potomac Edison's residential rates would remain the lowest among Maryland's investor-owned electric utilities. As of June 1, Potomac Edison's electric rates were 25% below the average rate of its in-state peers.

The proposal includes a reliability improvement program focused on upgrading electric system infrastructure and technology. The program would build on investments Potomac Edison has made in recent years to improve reliability, strengthen the system and support faster restoration when outages occur.

Chris Beam, FirstEnergy's President of West Virginia and Maryland: "We recognize that any increase in a customer's bill matters, and we take that responsibility seriously. This proposal is focused on investments we believe are necessary to strengthen the electric system, improve reliability and better prepare our customers for severe weather. We will continue to look for ways to manage costs responsibly while making investments that benefit customers over the long term."

Recent Potomac Edison investments include:

• Replacing and upgrading poles, power lines and other equipment to strengthen the electric system and improve its ability to withstand severe weather.
• Installing smart grid technology that can automatically reroute power when outages occur, helping keep more customers in service and reducing restoration times. 

The proposed reliability improvement program would build on these efforts through targeted upgrades to power lines, underground equipment and grid technology. Projects would include:

• Installing Supervisory Control and Data Acquisition (SCADA) technology to provide greater visibility into the electric system and help crews respond to problems more quickly.
• Replacing substation reclosers and adding circuit ties and automation to improve system flexibility and restoration capabilities.
• Upgrading overhead power lines through reconductoring and replacing aging underground cables.
• Removing more high-risk trees near power lines before they can cause outages, with a particular focus on preparing for severe weather.

Potomac Edison is committed to managing costs responsibly while making investments needed to maintain and improve the electric system. The proposed rate adjustment must be reviewed and approved by the Maryland Public Service Commission before it can take effect. The PSC's review process provides an opportunity for public input and for the commission to evaluate the proposal and its impact on customers.

Potomac Edison serves about 295,000 customers in all or parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington counties in Maryland. Follow Potomac Edison at potomacedison.com, on X @PotomacEdison, and on Facebook at facebook.com/PotomacEdison.

FirstEnergy is dedicated to integrity, safety, reliability and operational excellence. Its electric distribution companies form one of the nation's largest investor-owned electric systems, serving more than six million customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company's transmission subsidiaries operate approximately 24,000 miles of transmission lines that connect the Midwest and Mid-Atlantic regions. Follow FirstEnergy online at firstenergycorp.com and on X @FirstEnergyCorp.

View original content to download multimedia:https://www.prnewswire.com/news-releases/potomac-edison-proposes-rate-adjustment-to-support-electric-system-reliability-302870450.html

SOURCE FirstEnergy Corp.

FAQ

What rate adjustment did Potomac Edison propose in Maryland for FirstEnergy (FE)?

Potomac Edison proposed a $52.8 million Maryland rate adjustment to support continued investment in its electric system. The company says the funds would help upgrade aging infrastructure, modernize the grid and finance projects designed to strengthen reliability for its customers.

How much would Potomac Edison’s proposed rate increase affect the average residential bill?

The proposed Potomac Edison rate adjustment would raise the monthly bill for the average residential customer by approximately 5.3%. The company indicates that, despite this increase, its residential electric rates would still remain the lowest among Maryland investor-owned utilities.

Would Potomac Edison’s residential rates still be competitive after the proposed increase?

Yes. Potomac Edison states that even with the proposed rate adjustment, its residential rates would remain the lowest among Maryland’s investor-owned electric utilities. As of June 1, its rates were 25% below the average rate of in‑state peers, providing a cushion relative to competitors.

What reliability and grid projects would Potomac Edison fund with the proposed Maryland rate increase?

The proposed rate increase would support a reliability improvement program that includes upgrading power lines and underground equipment, installing SCADA technology, replacing substation reclosers, adding circuit ties and automation, reconductoring overhead lines, replacing aging underground cables, and removing more high‑risk trees near power lines.

Why does Potomac Edison say the Maryland rate adjustment is needed?

Potomac Edison says the rate adjustment is focused on investments it believes are necessary to strengthen the electric system, improve reliability and better prepare customers for severe weather. The company also highlights prior investments in smart grid technology and infrastructure upgrades aimed at faster restoration during outages.

Does Potomac Edison’s proposed Maryland rate change require regulatory approval?

Yes. The proposed rate adjustment must be reviewed and approved by the Maryland Public Service Commission before it can take effect. The review process allows for public input and enables the commission to evaluate the proposal and its impact on customers.

How many Maryland customers would be affected by Potomac Edison’s proposed rate adjustment?

Potomac Edison serves about 295,000 customers in all or parts of Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington counties in Maryland. Those customers are the ones who would be affected if the Maryland Public Service Commission approves the proposed rate adjustment.