Based on a settlement filed by PECO with the Pennsylvania Public Utility Commission (PUC), overall customer bills are expected to increase approximately 1 percent starting January 1.
PECO said in a press release that the increase translates to a $1.27 jump on the total monthly bill for a typical residential electric customer using about 700-kilowatt hours of electricity.
Advertisements
PECO filed the settlement petition seeking approval for the changes in electric delivery rates, as well as refunds to customers of federal tax savings from the 2017 Tax Cuts and Jobs Act. As part of the August 28 settlement, the typical PECO residential customer will receive a one-time bill credit of approximately $30 in January relating to benefits of the 2017 tax act, according to the utility company.
“We are pleased to have arrived at this settlement, allowing PECO to continue our commitment to delivering safe and reliable service for our customers and the communities we serve,” said Mike Innocenzo, PECO president, and CEO. “We are particularly pleased that we were able to work with our stakeholders to quickly provide the tax savings to customers that will more than offset the rate increase for the first year.”
According to the PECO filing, the new rates will help pay for improvements to the electric distribution system and services, including infrastructure and technology upgrades that will help PECO maintain safety and service reliability, and help customers better manage their bills and energy usage. PECO is also seeking to encourage economic development and environmental stewardship through this settlement, assisting in the development of publicly available electric vehicle fast-charging stations and encouraging the use of energy efficient smart street lighting.
Advertisements
In addition, PECO has agreed to work closely with various community-based organizations to help PECO customers establish eligibility for assistance programs. PECO will also increase its budget for its Low-Income Usage Reduction Program (LIURP) by an additional $1 million per year.
For PECO’s commercial customers, the rate case settlement translates to an increase of $2.96 per month for typical small business customers. As a result of the 2017 Tax Cuts and Jobs Act, the average small business customer will receive a one-time bill credit of $126 in January 2019.
Advertisements
The settlement and rate request must be approved by the PUC before any rate changes or tax refunds take effect.
