Press Release

PUC Approves Lower Rate Increases than Requested by Penn Power, West Penn Power, Met-Ed and Penelec

Published on 1/19/2017

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved joint settlements for lower rate increases than originally requested by FirstEnergy Corp. (FirstEnergy) for its four Pennsylvania subsidiaries:  Metropolitan Edison Company (Met-Ed), Pennsylvania Electric Company (Penelec), Pennsylvania Power Company (Penn Power), and West Penn Power Company (West Penn Power).  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 Petitions for Partial Settlement, which were agreed to by all formal parties in the case, including:  FirstEnergy; the Commission’s independent Bureau of Investigation and Enforcement; Pennsylvania’s Office of the Consumer Advocate; the Commonwealth’s Small Business Advocate; CAUSE-PA, representing low-income customers; and advocates for large electricity users.

According to the settlements, annual base rate distribution revenues will increase by $90.5 million (6.52 percent) for Met-Ed; $94.6 million (7.22 percent) for Penelec; $27.5 million (6.54 percent) for Penn Power; and $60.6 million (3.83 percent) for West Penn Power.  The rate increases will become effective on or before Jan. 27, 2017.

Under the Met-Ed settlement, a typical monthly bill for a Met-Ed residential customer using 1,000 kilowatt hours (kWh) per month will increase from $139.91 to $153.82, or 9.94 percent.  Under Met-Ed’s original proposal, the average total monthly bill for a residential customer would have increased from $139.91 to $157.43, or 13.5 percent.  The company provides service to approximately 560,000 customers in eastern and south central Pennsylvania.

Under the Penelec settlement, a typical monthly bill for a Penelec residential customer using 1,000 kWhs per month will increase from $145.86 to $163.49, or 12.08 percent.  Under Penelec’s original proposal, the average total monthly bill for a residential customer would have increased from $145.86 to $169.47, or 17.1 percent.  The company provides service to approximately 590,000 customers in western, northern and south central Pennsylvania.

Under the Penn Power settlement, a typical monthly bill for a Penn Power residential customer using 1,000 kWhs per month will increase from $141.24 to $154.75, or 9.56 percent.  Under Penn Power’s original proposal, the average total monthly bill for a residential customer would have increased from $141.24 to $159.69, or 14.18 percent.  The company provides service to approximately 163,000 western Pennsylvania customers.

Under the West Penn Power settlement, a typical monthly bill for a West Penn Power residential customer using 1,000 kWhs per month will increase from $113.27 to $121.36, or 7.14 percent.  Under the company’s original proposal, the average total monthly bill for a residential customer would have increased from $113.27 to $124.16, or 9.6 percent.  The company provides service to approximately 721,000 customers in central and southwestern Pennsylvania.

On June 9, 2016, the Commission voted to suspend and investigate each rate increase request to determine what, if any, of the requested increases were justified.  The Commission held 12 public input hearings across the Commonwealth to gather public comment about the rate increase requests.

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” Pennsylvania Public Utility Commission on Facebook for easy access to information on utility issues.

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 Docket Nos.: R-2016-2537349

                        R-2016-2537352

                        R-2016-2537355

                        R-2016-2537359

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov