The Pennsylvania Public Utility Commission (PUC) approved joint settlements Thursday for lower rate increases than originally requested by FirstEnergy Corp. (FirstEnergy) for its four Pennsylvania subsidiaries: Metropolitan Edison Company (Met-Ed), Pennsylvania Electric Company (Penelec), Pennsylvania Power Company (Penn Power), and West Penn Power Company (West Penn Power).
The rate increases impact the cost to deliver electric service to homes and businesses, which makes up about one-third of a customer’s bill.
On June 9, 2016, the Commission voted to suspend and investigate each rate increase request to determine what, if any, of the requested increases were justified. The Commission held 12 public input hearings across the Commonwealth beforehand to gather public comment about the rate increase requests.
The Commission voted 5-0 to approve the Joint Petitions for Partial Settlement, which were agreed to by all formal parties in the case, including FirstEnergy; the Commission’s independent Bureau of Investigation and Enforcement; Pennsylvania’s Office of the Consumer Advocate; the Commonwealth’s Small Business Advocate; CAUSE-PA, representing low-income customers; and advocates for large electricity users.
According to the settlements, annual base rate distribution revenues will increase by $90.5 million (6.52-percent) for Met-Ed; $94.6 million (7.22-percent) for Penelec; $27.5 million (6.54-percent) for Penn Power; and $60.6 million (3.83-percent) for West Penn Power.
The rate increases will become effective on or before Jan. 27.
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 www.puc.pa.gov.
