PA: PECO rate case raises eyebrows of PUC, DG customers


The Pennsylvania Public Utility Commission has voted to investigate PECO’s request to raise its annual distribution rates by $190 million (15.6%) under the utility’s current rate case, which commenced in March. In a joint statement, Chairman Robert Powelson and Commissioner Gladys Brown expressed interest in facilitating an on-the-record discussion regarding PECO’s proposal to replace its existing Auxiliary Service Rider with a new Capacity Reservation Rider. Under the proposed rider, customers with DG systems greater than 100 kW and less than 10 MW would be required to reserve distribution system capacity in an amount equal to the nameplate capacity of the DG system. The proposed rider also would eliminate certain aspects of PECO’s existing Auxiliary Service Rider that relate to standby service and back-up power. The commissioners have encouraged parties to address specific questions addressing these proposals and their potential impacts.

In its rate case, PECO proposed moderate increases in its basic distribution fixed charge for residential customers, and the removal of all volumetric distribution rate components for commercial and industrial customers, replacing those with higher demand charges. For standard residential service, PECO proposed raising its fixed monthly charge from $7.13 to $12.02.

PECO is also seeking authorization for a distribution service improvement charge (DSIC), which it refers to as its System 2020 plan. Under this plan, PECO anticipates making distribution service investments totaling $274.3 million from 2016 to 2020.