PA: FirstEnergy utilities propose major rate changes


FirstEnergy subsidiaries Pennsylvania Power, West Penn Power, Metropolitan Edison and Pennsylvania Electric filed comprehensive distribution rate plans with the Pennsylvania Public Utility Commission on August 4, 2014. The four filings were made separately, but the four companies have requested that the PUC formally consolidate the four proceedings. Each filing includes proposed revisions to distribution base rates, and generally attempts to move toward a standard rate design (including the consolidation of tariffs) and a standard set of rules and regulations for all four companies. According to FirstEnergy, the principal factors driving the four companies’ needs to increase their distribution base rates include growth in the companies’ distribution rate bases, depreciation expenses, and deferred storm damage expenses.

This is Penn Power’s first base rate case (Docket R-2014-2428744) filed in 26 years. Penn Power’s proposed new rates, proposed to take effect October 3, 2014, would yield an annual increase of $28.5 million (8.7%) over current rates. Here is a brief selection of the specific changes proposed by Penn Power:

  • For Rate RS (Residential Service), raising the monthly customer charge from $8.89 to $12.71, imposing a demand charge of $2/kW for customers with a demand exceeding 25 kW, and raising the kWh charge from $0.02213 to $0.03523.
  • For Rate GS-Small, raising the monthly customer charge from $14.44 to $19.24, reducing demand charges (where they currently exist) to $0, and applying a kWh charge of $0.01290.
  • For Rate GP (General Service Primary), raising the monthly customer charge from $0 to $123.71, and replacing a demand charge of $1.670/kVA with a demand charge of $3.69/kW and a Reactive Billing Demand charge of $0.20/rkVA.