Press Release

PUC OKs Lower Rate Increase than Requested by PECO’s Natural Gas Division

Published on 10/23/2008

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a lower rate than requested by PECO Energy Co. – Gas Division.

The Commission voted 5-0 to approve the settlement, which increases rates by about $76.5 million (8.7 percent) a year. The company’s original request was to increase rates by about $98.3 million (11.2 percent). The settlement was reached between the company and the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate, the PUC’s Office of Trial Staff and consumers who had filed formal complaints against the proposed increase.

Under the new base rates, the monthly bill for an average residential customer using 8,000 cubic feet (Mcf) of natural gas a month will increase from $135.10 to $145.16 (7 percent). According to the settlement, the company may not file for a rate increase until Jan. 1, 2010.

The settlement also requires PECO to: 

• Increase its annual funding for Low Income Usage Reduction Programs (LIURP) from $1.75 million to $2.25 million; 
• Implement  a four-tier Customer Assistance Program (CAP) that is subject to re-evaluation, which occurs every three years; and
• Monitor new CAP participant’s consumption to determine whether CAP customers are maintaining annual usage at or below 125 percent of historical average usage, adjusted for weather.

PECO Energy provides gas services to approximately 439,924 residential and 41,314 commercial and industrial customers in portions of Bucks, Chester, Delaware, Lancaster and Montgomery 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-2008-2028394

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