Press Release

PUC Approves Agreement for Lower Rate than Requested by Duquesne Light

Published on 11/30/2006

Filed under: Electric

HARRISBURG – The Public Utility Commission (PUC) today approved an agreement for a lower rate increase than requested by Duquesne Light Co.

The Commission voted 4-0 to approve the settlement, under which the company will raise distribution rates by about $117 million. Commission Chairman Wendell F. Holland issued a statement. Vice Chairman James Cawley also issued a statement.

The bill for an average residential customer using 600 kWh of electricity will increase from $63.87 a month to $74.23 a month (16.2 percent), according to the settlement. The company’s original proposal called for a distribution rate increase of about $143.7 million with average residential bills increasing to about $75.86 a month (18.8 percent).

The settlement does not include Duquesne Light’s filing for a $19.2 million increase in transmission rates, which is being considered by the Federal Energy Regulatory Commission.

Under the settlement, the company also will:

• Increase the number of customers who can participate in Customer Assistance Programs from about 23,000 to 27,000.
• Expand the size of its Low Income Usage Reduction Program by $350,000 to about $1.5 million per year, increasing the number of consumers served from 1,750 to 2,250.
• Direct a $20 million annual payment to its pension plans.
• Contribute $1.5 million a year through 2010 to be administered by the Pennsylvania Energy Development Authority to fund renewable energy projects.  

The rates will be effective Jan. 6, 2007. The settlement was reached between the company and the formal complainants in the case. The 18 formal complainants included the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate, Citizens for Pennsylvania’s Future, Duquesne Industrial Intervenors, the Community Action Association of Pennsylvania, the International Brotherhood of Electric Workers Local 29, the Pennsylvania Large Energy Users Coalition and the Commission’s Office of Trial Staff.

Duquesne Light serves more than 580,000 customers in Allegheny and Beaver counties.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our Web site at www.puc.state.pa.us.

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Docket Nos. R-00061346; R-00061346C0001, C0002, C0005, C0007, C0008

Contact:

• Press Secretary
  717-787-5722