Rate increase - to explain the last one

HARRISBURG — Pike County Power & Light Company on July 17 received tentative Public Utility Commission approval for an additional rate increase termed as a “price increase mitigation.” This smaller one, than the sought prior to one announced last Friday, would recover some $35,000 the utility has spent on the consumer education - cost mitigation plan, which was directed by the commission after the lifting of rate caps in 2006 resulted in sharp rate increases. Denise McCracken, acting press secretary at the commission said that the objectives included in the Company’s Consumer-Education Plan were largely directed by a settlement between and more than 50 complainants, to improve customer relations, infrastructure and vegetation management. Costs to be recovered included establishing a citizens advisory council, informing all customers of the new pricing, participating in local chambers of commerce events, the new Milford office, increased United Way donations, a bi-monthly newsletter and advertising in various local media. McCracken said, for the first year (2008), small industrial, small commercial and residential customers would pay between $4-5 a year for the cost of the plan. For 2009-2012, those costs decrease to approximately $3-4 a year. In addition to the 30-day comment period for parties to file comments on the tentative plan, once the Company files a tariff related to the Education costs, there will be a 60-day comment period during which interested parties can file protests. More on the settlement can be found at http://www.puc.state.pa.us/General/press_releases/Press_Releases.aspx?ShowPR=1925