The state Public Utility Commission on Thursday approved a “significantly reduced” rate increase for residents using FirstEnergy electricity, including Penelec customers.
The five-member commission voted unanimously to approve a settlement limiting the overall change in base rates to about $225 million annually, more than 55 percent less than the utility’s $502 million per year request. Penelec customers will see a 4.1 percent rate increase.
The settlement requires the utility to enhance its customer assistance programs and to return $13.6 million to customers for improper lobbying expenses, payable as a one-time bill credit. It forbids it from seeking another rate increase for two years, and gives the company one-year to assess opportunities to use underground lines rather than poles as part of its Long-Term Infrastructure Improvement Plan.
The new rates take effect on January 1st.
While the changes approved by the PUC are to FirstEnergy companies’ base rates, Penelec has announced that its “rate to compare” will remain the same for the next six months. The rate is charged to cover the cost of generating electricity and is not subject to PUC approval. The 10.474 cents per kilowatt hour rate will remain in effect through May 31st, 2025.
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