HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved settlements for lower rate increases than originally requested by FirstEnergy Corp. for its four Pennsylvania subsidiaries: Pennsylvania Power Company (Penn Power), West Penn Power Company (West Penn Power), Metropolitan Edison Company (Met-Ed) and Pennsylvania Electric Company (Penelec). The rate increases impact the cost to deliver electric service to homes and businesses, which makes up about one-third of a customer’s bill.
The Commission voted 5-0 to approve the joint settlements, which were agreed to by all the formal parties in the case. Commissioner James H. Cawley issued a statement related to the companies' recent Focused Management and Operations Audits, as well as a statement requesting clarifications to the joint settlements.
According to the settlements, annual base rate distribution revenues will increase by $17 million (5.2 percent) for Penn Power, by $59.9 million (4.4 percent) for West Penn Power, by $91.3 million (6.6 percent) for Penelec and by $90 million (6.8 percent) for Met-Ed. The rate increases will become effective on or before May 19, 2015.
Under the Penn Power settlement, the monthly electric bill for an average residential customer using 1,000 kilowatt-hours (KWH) per month will increase by $7.80, from $104.76 to $112.56 (7.4 percent). Penn Power serves about 335,000 customers in seven counties. This is the company’s first base distribution rate increase request in 26 years.
Under the West Penn Power settlement, the monthly electric bill for an average residential customer using 1,000 KWH per month will increase by $12.15, from $92.47 to $104.62 (13.1 percent). West Penn Power serves about 1.48 million customers in 23 counties. This is the company’s first base distribution rate increase request in 20 years.
Under the Met-Ed settlement, the monthly electric bill for an average residential customer using 1,000 KWH per month will increase by $12.70, from $116.56 to $129.26 (10.9 percent). Met-Ed serves about 1.25 million customers in 14 counties. This is the company’s first base distribution rate increase request in 23 years.
Under the Penelec settlement, the monthly electric bill for an average residential customer using 1,000 KWH per month will increase by $15.76, from $120.46 to $136.22 (13.1 percent). Penelec serves about 1.2 million customers in 32 counties. This is the company’s first base distribution rate increase request in 29 years.
On Oct. 2, 2014, the Commission voted to suspend and investigate each rate increase request to determine what, if any, of the requested increases were justified.
In November 2014, 12 public input hearings were conducted by Commission Administrative Law Judges in seven locations around the state, in Warren, New Castle, Erie, Washington, Uniontown, Reading and East Stroudsburg. More information on the ratemaking process is available on the Commission’s website.
The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.
For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility. “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.
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Docket Nos.: R-2014-2428742; R-2014-2428743; R-2014-2428744; R-2014-2428745; M-2013-2341991; M-2013-2341994; M-2013-2341993; M-2013-2341990