Press Release

PUC Approves $206,800 Settlement with PECO over Terminations, Directs Money to Approximately 2,000 Customers

Published on 6/24/2008

Filed under: Electric

HARRISBURG –   The Pennsylvania Public Utility Commission (PUC) today approved a settlement agreement that ends an informal investigation into allegations that PECO Energy Company violated portions of Chapter 14 of the Public Utility Code.

The Commission voted 4-0 to approve the Settlement that orders PECO to pay approximately $206,800 in civil penalties and refund payments.  Under the settlement, and in addition to the refunds PECO has already provided to customers who were charged a reconnection fee, ranging between $70 and $250, PECO will provide the following refund payments:

●    Each of the 1,239 customers whose service was terminated, but reinstated by May 5, 2007, a $60 credit toward their PECO utility bill;

●    Each of the 567 customers whose service was terminated, but reinstated by May 18, 2007, a $100 credit toward their PECO utility bill; and

●    Each of the 23 customers whose service was terminated, but reinstated after May 18, 2007, a $120 credit toward their PECO utility bill.

During the last week of March and the month of April 2007, while PECO was converting to a new information and management system, the company’s outside vendor did not properly code about 20,000 residential customer accounts.  The improper coding caused PECO to commit termination of certain customer accounts.  PECO identified the problem on April 27, 2007, and responded immediately to correct the error.  As a result, 17,613 accounts were not terminated.  In the following weeks, the remaining affected accounts were reinstated following termination, and these are the accounts entitled to a refund under the settlement.

On June 20, 2007, the Commission’s Law Bureau Prosecutory Staff initiated an informal investigation alleging that PECO failed to provide the required 72-hour advanced notice of termination to approximately 2,000 accounts and failed to restore service within 24 hours to accounts that had been terminated in error.  In an Order entered Feb. 20, 2008, the Commission issued the Settlement Agreement to the public for comment.  No comments were received.

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.

###

Docket No. M-00072051

Contact:

• Denise McCracken
  Senior Communications Specialist
  717-787-5722
  demccracken@pa.gov