Press Release

PUC OKs PPL Distribution System Improvement Charge for Infrastructure Upgrades

Published on 5/23/2013

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved the petition of PPL Electric Utilities Corp. to implement a distribution system improvement charge (DSIC).

The Commission voted 5-0 to approve in part the company’s petition, which was filed pursuant to Act 11 of 2012. The company’s DSIC may not become effective before July 1, 2013. The company also must notify customers of quarterly changes in the DSIC through bill messages, in addition to PPL Electric’s Connect newsletter. The Commission also referred several issues in the petition related to tariff riders and tax calculations to the PUC Office of Administrative Law Judge for hearings.

Act 11 requires and provides for, among other things, utilities to file the plans 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.  The Commission had approved PPL’s long-term infrastructure improvement plan, which is required before enacting a DSIC, on Jan. 10, 2013. PPL plans to accelerate infrastructure replacement over a period of five years. 

As of Jan. 1, 2013, public utilities could petition the Commission for approval to establish a DSIC. The petition must contain the following elements: 1) initial tariff; 2) testimony and exhibits to demonstrate that the DSIC will ensure the provision of adequate, efficient, safe, reliable and reasonable service; 3) 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.

PPL provides electricity service to approximately 1.4 million customers in 29 counties in eastern and central 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. M-2013-2362961

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