Press Release

PUC Seeks Comments on Implementation of Act 11 of 2012

Published on 5/10/2012

Filed under: Electric Gas Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today issued for comment a Tentative Order that begins the implementation of Act 11 of 2012, which among other things, provides for a distribution system improvement charge (DSIC) for electric, natural gas, water and wastewater utilities.

The Commission voted 5-0 to receive comments on the Tentative Order that addresses the Act 11 initiatives that allow electric, natural gas, water and wastewater utilities to petition for the use of a DSIC to fund infrastructure upgrades.

The Tentative Order contains information on:

• Establishing procedures for implementation of a voluntary DSIC for utilities;
• Filing long-term infrastructure improvement plans;
• Revising the  method used to fix the value of and return on the property for ratemaking  purposes;
• Establishing procedures for the use of a fully-projected test year in base rate proceedings;
• Allowing utilities to combine for ratemaking purposes different types of utility service;
• Establishing customer protections and notifications;

On Feb. 14, 2012, Governor Corbett signed Act 11 of 2012, which allows jurisdictional water and wastewater utilities, natural gas distribution companies, city natural gas distribution operations, and electric distribution companies to petition the Commission for approval to implement a DSIC. Under the law, the DSIC must be designed to provide for "the timely recovery of the reasonable and prudent costs incurred to repair, improve or replace eligible property in order to ensure and maintain adequate, efficient, safe, reliable and reasonable services.

Interested parties have 20 days from the entry of the Tentative Order to comment on these proposed changes. Specific instructions on how to submit comments may be found in the Order.  The Tentative Order will be finalized based on these comments

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 website at www.puc.state.pa.us.

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Docket No. M-2012-2293611

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• Press Secretary
  717-787-5722