Press Release

PUC Approves PECO’s Long-Term Infrastructure Improvement Plan

Published on 5/9/2013

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the petition of PECO Energy Co. to begin implementation of its long-term infrastructure improvement plan (LTIIP) following the approval of a distribution system improvement charge (DSIC) tariff to fund the infrastructure improvements.

The Commission voted 5-0 to approve PECO’s LTIIP, which was filed in compliance with Act 11 of 2012.  Under PECO’s LTIIP, the company’s 10-year plan will increase its projected capital investment for replacing aging natural gas service lines from about $14 million a year to $34 million per year.  PECO’s increased level of investment will enable it to replace all of its oldest, high-risk cast iron and all of its bare steel services in about 10 years and replace all of the cast iron and bare steel mains in its system in about 34 years. 

Act 11 requires among other things that utilities to file LTIIPs as part of any action to establish a DSIC to recover reasonable and prudent costs incurred to repair, improve or replace certain eligible distribution property that is part of a utility’s distribution system.

As of Jan. 1, 2013, public utilities may petition the Commission for approval to establish a DSIC. The petition must contain the following elements: 1) an initial tariff; 2) testimony and exhibits to demonstrate that the DSIC will ensure the provision of adequate, efficient, safe, reliable and reasonable service; 3) a long-term infrastructure plan; 4) certification that a base rate case has been filed within the past five years; and 5) any other information required by the Commission.  The petition must demonstrate that granting the petition and allowing the DSIC to be charged will accelerate the replacement of infrastructure.

PECO provides electric delivery service to about 1.6 million customers and natural gas delivery service to about 495,000 customers in Pennsylvania. 

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 service.”

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.

For recent news releases and video of select Commission proceedings or more information about the PUC, visit our website at www.puc.pa.gov. Follow the PUC on Twitter – @PA_PUC for all things utility.  “Like” PAPowerSwitch on Facebook for easy access to information on electric shopping.

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Docket No. P-2013-2347340

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