State OKs rate hike for FirstEnergy utilities

But PUC adds caveat of improving service, reliability

The Pennsylvania Public Utility Commission approved rate increases on Thursday for FirstEnergy’s four Pennsylvania electric utilities — but not without a reminder that the state is closely watching for significant improvements to customer service and reliability.

Customers of West Penn Power Co., which services about 720,000 customers in 23 counties surrounding Pittsburgh, will see their bills increase 13.1 percent. The approved rates, which will take effect by May 19, take a typical monthly bill from $92.47 to $104.62.

FirstEnergy, based in Akron, originally asked for a 14.7 percent increase for West Penn when it filed for a rate change last August, but consumer groups stepped in and settled with the company last month.

Even with the increases approved by the PUC, West Penn’s bills will remain the lowest compared to FirstEnergy’s other utilities — Pennsylvania Electric Co., Penn Power Co. and Metropolitan Edison Co. — and will bring in an additional $60 million, or 4.4 percent, in total distribution revenue for the utility.

But the state’s approval came on the heels of a scathing audit that took aim at the utilities’ management flaws and suggested more than two dozen fixes.

In particular, West Penn’s customer service was criticized.

From 2008 to 2013, West Penn Power’s rate of abandoned calls was almost twice the average, and rate of calls answered in 30 seconds lagged far behind the other FirstEnergy utilities.

In 2013, West Penn representatives answered 69 percent of calls within 30 seconds, while the average was 80 percent.

Commissioner James Cawley issued a statement Thursday reminding FirstEnergy that approval of the rate settlement does not weaken the PUC’s scrutiny.

The commission wants more information on how the energy giant will address the audit’s recommendations by the end of April.

In a second statement, Mr. Cawley said the commission was concerned about West Penn’s estimated charges for municipalities to convert their streetlights to more efficient bulbs.

PennFuture, an environmental advocacy group that pushes for policy changes, had claimed the utility overestimated its costs of providing light-emitting diode, or LED, bulbs.