Photo by Joseph Zlomek

On Feb. 1 Southern Maryland Electric Corporation hiked its charges for hooking up new electric lines for the first time in eleven years – and the raises are considerable.

An average of 222 new single family homes were connected by SMECO each month last year. For such a home, the increase is likely to be over 50%. The reason for the steep hike, according to representatives Ann Knott and Terri Ressler, is that for the last three years SMECO hasn’t been recouping the costs of installation.

However, many homes – in St. Mary’s County in particular – are set further back from the main lines and the increased costs of connecting them are proving to be huge. Chris Chaffee, of C & H Builders, is one builder who was astounded by the new charges. Under the new rates the cost to connect electric to homes further back from the main supply will be $11.49 per foot. “The cost went up 2,000% in my case, and I wasn’t notified in advance,” he said.

Chris Chaffee called to arrange for two new houses he was building to be connected on Feb. 3. A week later, on Feb. 10 he was informed the rates had changed and he wasn’t eligible for the old prices because the changes went into effect two days before he called. For Chaffee’s two constructions the cost of connection was increased by $16,000 in one case, and $6,800 in the other. Chaffee complains that he would have put through his applications in January had he known of the intended rate hikes. “SMECO said they published these rates that no-one knows about,” complained Chaffee. The official letter of notification about the charges was released on, and dated, Feb. 16. Chaffee is currently asking SMECO to waive the fees for the two lots he applied for on Feb. 3.

“We tried to give all our consumers, including builders, as much notice as we could,” Knott and Ressler, SMECO representatives, told The Bay Net. “Unfortunately the new rates are in effect,” they said when asked about applications prior to the official announcement.

“The Public Service Commission gave SMECO the OK to change the rates,” said Chaffee, “but did they know the extent of the increases or their effects?” For an agricultural lot, the type Chaffee has several of, he estimates an additional twenty to thirty thousand dollars may be needed to get electric supplies.

“They’re ripping me off $24,000 in a day, is how I felt,” Chaffee told The Bay Net. He says he understands that SMECO may have been losing money in residential areas such as Lexington Park, “But,” he says, “on larger lots it’s going to kill you.”

“It’s going to kill the two people I sold houses to who got their loans already,” said Chaffee. “They don’t even know about it!” He says he is waiting to tell his two clients until he receives a definite “no” to an appeal.

“Over the years SMECO’s given me a hard time,” said Chaffee. “You basically have to deal with these guys, and you feel helpless. It’s a monopoly.”

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