PECO proposes rate case settlement
Proposal includes lower rate increase, $30 credit for federal tax savings
PECO filed a settlement petition seeking approval for changes in electric delivery rates.
PHILADELPHIA » PECO filed a settlement petition with the Pennsylvania Public Utility Commission Tuesday seeking approval for changes in electric delivery rates beginning Jan. 1, 2019.
The settlement petition also calls for refunds to customers of federal tax savings from the 2017 Tax Cuts and Jobs Act.
The petition settlement, if accepted by the Pennsylvania Public Utility Commission, would result in an increase of approximately 1 percent beginning Jan. 1 — about one-third of PECO’s original March 2018 rate request.
For a typical residential customer using about 700 kilowatt hours of electricity, the proposed increase would translate to a $1.27 increase on the total monthly bill. The rate increase request in PECO’s original filing asked for an increase of 3.2 percent.
In addition, a typical PECO residential customer will receive a one-time bill credit of approximately $30 in Jan. 2019 relating
The petition settlement, if accepted by the Pennsylvania Public Utility Commission, would result in an increase of approximately 1 percent beginning Jan. 1 — about onethird of PECO’s original March 2018 rate request.
to benefits of the 2017 tax act.
For a typical small business customer using about 10,000 kilowatt hours of electricity per month, the proposed increase would translate to an increase of $2.96 per month. Those customers will receive a one-time bill credit of approximately $126 in Jan. 2019.
“We are pleased to have arrived at this settlement, allowing PECO to continue our commitment to delivering safe and reliable service for our customers and
the communities we serve,” Mike Innocenzo, PECO president and CEO said in a press release. “We are particularly pleased that we were able to work with our stakeholders to quickly provide the tax savings to customers that will more than offset the rate increase for the first year.”
The process of reaching a settlement agreement, “includes extensive engagement with stakeholders, discovery, testimony and settlement discussions,” according to PECO spokeswoman Afia Ohene-Frempong.
According to a spokesman for the Public Utility Commission, the settlement petition now becomes part
of PECO’s rate case, which is currently in the hands of the Office of the Administrative Law Judge.
“They will consider this along with everything else that is part of the case,” said Nils Hagen-Frederiksen, spokesman for the Public Utility Commission, adding that the Office of the Administrative Law Judge will issue a recommended decision on the case, which will be provided to the members of the Public Utility Commission. That recommended decision is expected this fall.
A final decision by the Public Utility Commission must be made by Dec. 28.
According to Hagen Frederikson, the Public
Utility Commission does recommend settlements in rate cases, but they must be fully reviewed.
“The commission still needs to make sure it is something that will insure safe and reliable service at just and reasonable rates,” he said.
“PECO has a good history of working with the PUC. As is customary, we will await the PUC settlement decision,” Ohene-Frempong added.
The new rate structure proposed in the filing will provide for enhancements to PECO’s electric distribution system and services, including infrastructure and technology upgrades and help PECO customers better manage their bills and
energy usage, according to the company.
“PECO also looks to encourage economic development and environmental stewardship through this settlement, assisting in development of publicly available electric vehicle fast charging stations and encouraging the use of energy efficient smart street lighting,” the press release stated.
As part of the settlement, PECO has committed to working closer with various community-based organizations to help customers establish eligibility for assistance programs. The company will also increase its budget for its Low-Income Usage Reduction Program (LIURP) by an additional
$1 million per year, according to the release.
Customers wishing to review PECO’s filing with the Public Utility Commission can visit peco.com/rates or call 1-800-494-4000.
More information about the Public Utility Commission’s ratemaking process is available on the commission’s website.
Headquartered in Philadelphia, PECO delivers energy to more than 1.6 million electric customers and more than 516,000 natural gas customers in southeastern Pennsylvania.