PPL Electric Utilities negotiated a settlement with advocates and interest groups who intervened in the Company’s rate case.
In March, PPL sought to increase the total bill for a residential customer using 1,000 kilowatt-hours per month by 6.9%, or $10.19 a month.
PPL had requested a $167.5 million rate increase. That amount was reduced to $121 million or a 5.1% rate hike, subject to state Public Utility Commission approval. The typical bill for a residential customer using 1,000 kWh per month will increase by $7.53.
The new rates will take effect January 1.
PPL’s previous rate boost was approved on December 5, 2012. The Public Utility Commission adopted an Order authorizing a $71.065 million rate increase for PPL Electric Utilities effective on January 1, 2013. The increase drove up the flat monthly customer charge 62% from $8.75 to $14.09 per month.
PPL increased distribution rates by 6% percent in 2005, and the Company increased distribution rates by 2.7% in 2008.
Distribution increases are non-bypassable, collected from all customers of electricity, and weighted by rate schedule. Unfortunately, most of the costs were shouldered by residential customers. However, there are a number of cost savings
for consumers as a results of the settlement.
PPL proposed to change the monthly customer charge to a daily charge which would have increased the residential customer charge from $14.09 to $20.00. This proposed increase was withdrawn as part of the settlement with the parties.
PPL Electric also proposed to increase the DSIC cap charge from 5% to 7.5% of billed revenues. This proposed increase was also withdrawn as part of the settlement with PPL.
PPL plans to spend more than $5 billion during the next five years to rebuild its electricity delivery network, invest in smart grid technology, and construct new power lines and substations. The Company’s plan will include more tree trimming, and stronger poles and wires should minimize outages and accelerate response times to downed power lines.
The settlement contains a number of enhanced consumer provisions. Eric Epstein pointed out, “PPL Electric will provide a $500,000 a year increase for a low-income usage reduction program.”
Parties to the case included the Office of the Consumer Advocate, the PUC Bureau of Investigation and Enforcement, Sustainable Energy Fund, the state Office of Small Business Advocate, Commission on Economic Opportunity, Eric Epstein, PPL IndustrialCustomer Alliance, The Alliance for Solar Choice, Coalition of Affordable Utility Service and Energy Efficiency, Keystone Energy Efficiency Alliance Energy Education Fund, Natural Resources Defense Council and Clean Air Council.