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Press Release

PUC Approves Settlement for Substantially Smaller Rate Increase for PECO Energy Company – Gas Division

Published on 10/27/2022

Filed under: Gas

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) voted today to approve a joint settlement for a substantially smaller natural gas service rate increase for customers served by PECO Energy Company – Gas Division (PECO).  PECO provides natural gas distribution service to approximately 543,000 customers in southeastern Pennsylvania (located outside the City of Philadelphia). 

The Commission voted 5-0 today to approve the joint settlement, which provides for an increase in base rate revenues of $54.8 million (6%).  This is a nearly 33% reduction from PECO’s initial request of $81.2 million (9.1%).

The settlement was supported by the Pennsylvania Office of Consumer Advocate, the Office of Small Business Advocate, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA), the Philadelphia Area Industrial Energy Users Group, the PUC’s independent Bureau of Investigation and Enforcement, and PECO Energy Company – Gas Division.

Joint Settlement

Under the joint settlement approved today, the bill for a typical PECO residential natural gas customer using 80 hundred cubic feet (CcF’s) per month will increase by $8.57 (or 9.0%), from $95.31 to $103.88 per month – as compared to PECO’s initial request, which would have increase that same average residential bill to $107.70 (13%). 

Additional funding and support for various customer assistance initiatives is also included in this settlement, including an added $650,000 per year for PECO’s Low Income Usage Reduction Program (LIURP) – increasing the annual LIURP budget to $3.15 million – and contribute $300,000 per year of shareholder funds to PECO’s Matching Energy Assistance program.  Also included in the settlement is the continuation of a simplified application process to help recipients of the federally funded Low Income Home Energy Assistance Program enroll in PECO’s customer assistance program.

Several safety issues are also addressed in this settlement, including the acceleration of PECO’s gas mapping program and a collaborative discussion with the PUC’s Safety Division to enhance PECO’s distribution integrity management plan.

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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Docket No.: R-2022-3031113




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