Press Release

PUC Conducts Nonbinding Poll on Issues Related to Met-Ed, Penelec Rate Transition Plan

Published on 12/21/2006

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today conducted a nonbinding poll on the issues related to the petition for approval of a Rate Transition Plan by Metropolitan Edison Co. and Pennsylvania Electric Co. A final vote on the issues surrounding the requests will take place at the Jan. 11, 2007, public meeting.

The nonbinding poll provides Commission staff with guidance on how to prepare an opinion and order for Commission consideration. Commission Vice Chairman James Cawley issued a statement.  The Commission’s conclusions on the issues raised in this investigation will be determined by the Commission at the Jan. 11, 2007, public meeting.

The poll is designed to provide a mechanism for the Commission to discuss the contested issues of the case in a public forum. Commissioners base their findings on the record developed in the proceeding, the recommended decision from the presiding Administrative Law Judges and the briefs and exceptions presented by the parties in the case.

On March 10, 2006, Met-Ed and Penelec (FirstEnergy companies) filed a Rate Transition Plan that included rate increases. According to the filing, the proposed increases would allow Met-Ed and Penelec to begin to recover the costs of distribution, transmission and generation services, which have increased during the last several years.

According to the companies, the Rate Transition Plan attempts to restore the balance intended by the 1998 restructuring plan in a gradual, measured way that preserves the companies’ financial integrity while avoiding rate shock to consumers. The filing also addresses shortfalls in non-utility generation stranded cost recovery, the companies also said.

By operation of law, the rate request was suspended for up to seven months. On May 4, 2006, the PUC voted to investigate the proposal and assigned it to PUC Office of Administrative Law Judge for a recommended decision, which was issued Oct. 21, 2006. The suspension period ends Jan. 12, 2007.

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 No. R-00061366

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