Lower rate settlements approved for PCL&P

On Aug. 28, the Pennsylvania Public Utility Commission (PUC) approved smaller than requested rate changes for electric and natural gas distribution services provided by Pike County Light & Power Company (PCL&P).

According to a PUC press release, the Commission voted 5-0 to approve both settlements without modification as detailed in the Recommended Decisions of PUC Administrative Law Judges Marta Guhl and Alphonso Arnold III for electric and natural gas. PCL&P last adjusted general base rates for electric and natural gas customers on July 28, 2021.

PCL&P provides electric distribution service to approximately 5,350 residential, commercial, and industrial customers in Pike County – and natural gas distribution services to approximately 1,400 residential, commercial, and industrial customers in Westfall Township and Matamoras Borough, Pike County.

Under terms of the electrical division part of settlement, PCL&P may increase annual operating revenues for electric distribution services by $1.59M, representing an increase of 21.6% over revenues at present rates. PCL&P’s original proposal requested an increase in annual operating revenues of $1,874,600. PCL&P also initially proposed to roll into distribution rates its Distribution System Improvement Charge (DSIC) balance of $269,300. Therefore, PCLP’s actual originally proposed annual increase in electric distribution revenues was $2,143,900, or an increase of approximately 29.1% over revenues at present rates.

As a result of the settlement, the total monthly bill for a residential electric customer using 674 kilowatt hours (kWhs) per month will increase by $8.28, from $146.31 to $154.59 (5.7%). Under PCL&P’s original proposal, the average bill for a residential customer using 674 kWhs per month would have increased from $146.31 to $161.83 per month (10.6%).

The settlement also includes a $0.75 adjustment to the monthly residential customer charge, as opposed to the $2 increase proposed by the company.

Under terms of the natural gas division part of the settlement, PCL&P may increase its annual gas distribution operating revenues by $825,000 (33.3% over revenues at present rates) instead of by approximately $905,900 (35.8% over revenues at present rates), as originally requested by PCL&P.

Adjustments to the company’s annual operating revenues will be implemented in two phases:

In Phase 1, the total monthly bill for a residential heating customer using 80 Ccf per month will increase from $127 to $152.91 (20.4%) – and in Phase 2 from $152.91 to $172.35 (12.7%). Under the company’s proposal, the average bill for a residential heating customer using 80 Ccf per month would have increased from $127 to $196.08 per month (44.4%) under a single phase.

The settlement also includes a $0.75 adjustment to the monthly residential customer charge, as opposed to the $1.50 increase proposed by PCL&P, and rejects a proposed weather-related adjustment clause in the company’s initial filing.