Press Release

PUC Approves Settlement for Lower Rate Increases than Requested by PECO Electric, Gas

Published on 12/16/2010

Filed under: Electric Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to approve settlements for lower rate increases than requested by PECO Energy Co. for its electric and natural gas customers.

The Commission voted 5-0 to approve a motion by Chairman James H. Cawley to approve the settlement, which was agreed to by the formal parties in the case including the company, the Office of Consumer Advocate, the Office of Small Business Advocate and the PUC’s Office of Trial Staff. Commissioner Wayne E. Gardner issued a statement.

According to the PECO electric settlement, the company will increase electric rates by $225 million (4.9 percent). The company’s original proposal asked for a $316.4 million (7 percent) increase.

The total monthly electric bill for a residential customer using 500 kWh would increase by about $5.06 from $81.58 to $86.64 (6.2 percent). Under the company’s original proposal, the monthly bill for the same customer would have increased to $89.80. The new distribution rates go into effect Jan. 1, 2011.

This increase will affect the distribution portion of customers’ bills and is not related to the expiration of rate caps on the generation portion of the bills. The expiration of the generation portion of the bill was determined during the 1997 restructuring of the electric industry. Additional information on the changes in generation rates and information on how to shop for electricity can be found at www.papowerswitch.com.

PECO provides electricity to approximately 1.6 million customers in Bucks, Chester, Delaware, Montgomery, Philadelphia and York counties.

In separate action, the Commission voted 5-0 to approve a motion by Chairman James H. Cawley to approve the settlement, which was agreed to by the formal parties in the case including the company, the Office of Consumer Advocate, the Office of Small Business Advocate and the PUC’s Office of Trial Staff. Commissioner Wayne E. Gardner issued a statement.

According to the PECO natural gas settlement, the company will increase rates by $19.6 million (2 percent). The company originally requested to increase its natural gas rate by $43.8 million (5.28 percent).

According to the settlement, the monthly bill for an average residential customer using 800 cubic feet (Ccf) would increase by about $4.41 from $90 to $94.41 (4.9 percent). Under the company’s original proposal, the monthly bill for the same customer would have increased from $105.43 to $113.49 (7.6 percent).  The new rates go into effect Jan. 1, 2011.

PECO provides natural gas service to approximately 480,000 customers in Bucks, Chester, Delaware and Montgomery counties. 

More information on the ratemaking process is available on the Commission’s website.

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 Nos. R-2010-2161575 (electric); R-2010-2161592 (gas)

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