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Press Release

PUC Approves Lower Than Requested Rate Increase for PECO Energy

Published on 11/18/2021

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today adopted a Joint Petition for Settlement involving PECO Energy Company – Electric Division (PECO) and various other parties which reduces the rate increase requested earlier this year by the utility.

The Commission voted 3-0 to approve a net revenue increase of $132 million for PECO, compared to a $246 million increase in the utility’s initial filing with the PUC – a reduction of approximately 46% in the rate increase that was sought. Additionally, the settlement provides for PECO’s Distribution System Improvement Charge (DSIC) revenue of $35.7 million to be rolled into new base rates, which become effective on Jan. 1, 2022.

Under the settlement approved today, the bill for a typical residential customer using 700 kWh per month will increase by $6.66 per month, from $100.29 to $106.95 (6.6%). By comparison, in the company’s initial filing, the bill for a typical residential customer using 700 kWh per month would have increased by $9.68 per month, from $100.29 to $109.97 (9.65%).

The settlement agreement also includes the following commitments from PECO, including but not limited to:

  • Implementation of several measures to benefit customers enrolled in Customer Assistance Programs (CAPs), including a detailed plan addressing how it intends to expand CAP outreach efforts for customers at 0-50% of the Federal Poverty Level.

  • Additional steps to support PECO customers who are victims of domestic violence.

  • Additional steps to support Low English Proficiency (LEP) customers.

  • An increase in PECO’s annual LIURP budget (from $5.6 million to $6.6 million, beginning Jan. 1, 2023) and annual Health & Safety budget (from $1 million to $1.5 million).

  • A continuation of the De Facto Heating Pilot (with a $500,000 annual budget) through December 31, 2023, and the company’s commitment to share Pilot usage analysis.

  • Specific changes to PECO’s proposed Electric Vehicle (EV) Charging Pilot – including a collaborative working group meeting to discuss opportunities to support the equitable expansion of transportation electrification within PECO’s service territory. At today’s meeting, Chairman Gladys Brown Dutrieuille offered a statement in support of this ongoing initiative.

PECO provides electric services to nearly 1.7 million customers within Bucks, Chester, Delaware, Montgomery, Philadelphia and York counties.

The joint petition for settlement in this rate case was filed by PECO, the PUC’s Bureau of Investigation and Enforcement, the Office of Consumer Advocate, the Office of Small Business Advocate, ChargePoint Inc., the Clean Energy Advocates, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania, the National Railroad Passenger Corporation, the Philadelphia Area Industrial Energy Users Group, the Retail Energy Supply Association and NRG Energy Inc., the Tenant Union Representative Network and Walmart Inc.

About the PUC

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.

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