Press Release

PUC Advances Infrastructure Improvement Plans for Three More Utilities; Highlights $8 Billion in Accelerated Infrastructure Investments

Published on 12/21/2017

Filed under: Electric Gas Water and Wastewater

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the second Long-Term Infrastructure Improvement Plans (LTIIPs) for PPL Electric Utilities Corp. (PPL) and Aqua Pennsylvania Wastewater, Inc. (Aqua PA), and the first LTIIP for UGI Utilities, Inc. – Electric Division (UGI), further accelerating the replacement of aging utility infrastructure across the state.

The Commission voted 5-0 to approve each of the three LTIIPs, which are authorized under Act 11 of 2012 (Act 11).  The Act enables electric, natural gas and water/wastewater companies under the PUC’s jurisdiction to use a Distribution System Improvement Charge (DSIC) to increase the pace of infrastructure improvements. DSICs reduce the frequency and the associated costs of base rate cases while maintaining a high level of customer protections, but do require a utility to file a LTIIP – which serves as a “roadmap” for infrastructure improvements.

Since 2013, the Commission has approved 25 utility LTIIPs, resulting in a $2.3 billion investment in infrastructure improvement projects through year-end 2016.  The LTIIPs actual and projected investments total nearly $8 billion in needed infrastructure improvements by 2023, further enhancing public health and safety while ensuring reliability and effective service for millions of customers across Pennsylvania.

The Commission thoroughly reviews all filed LTIIPs as well as the required Annual Asset Optimization Plans of the utilities. Additionally, the Commission conducts a periodic review of LTIIPs, as required by law. The Commission’s review through these processes determines if the LTIIP:

• Specifies the way it accelerates or maintains an accelerated rate of infrastructure repair, improvement or replacement.
• Is adhered to by the utility.
• Is sufficient to ensure and maintain adequate, efficient, safe, reliable and reasonable service.
• Contains measures to ensure that projected annual expenditures are cost-effective.
• Meets all state regulations.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at www.puc.pa.gov for recent news releases and video of select proceedings.  You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube.  Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket Nos.: P-2017-2622393
                  P-2017-2619834
                  P-2017-2622818

Contact:

• David Hixson
  Deputy Press Secretary
  717-772-2766
  dhixson@pa.gov