State to probe new electric rate increase request

PCP&L gas rate increase also to be investigated HARRISBURG — State regulators are asking questions about new local rate increases for electric and gas service. The Pennsylvania Public Utility Commission (PUC) on Sept. 11 voted to investigate Pike County Light & Power’s request to increase its electric distribution rates by about $1.2 million. The Commission voted 5-0 to investigate the request, which represents about a 9.6 percent increase in rates. Under the company’s proposal, the monthly bill for an average residential customer using 660 kwh would increase about $15.90 from $109.47 to $125.37 (14.5 percent). The company also is proposing an alternative three-year rate phase-in plan for its electric operations, which, if adopted, would establish rates for the three-year period ending March 2012. Under the company’s three-year levelized rate proposal, the levelized annual distribution rate increase would amount to $614,400 per year. While the percentage and dollar impacts for the company’s three-year proposal are not currently available, the monthly bill impacts for customers would certainly be much lower under a three-year rate plan than a one-year rate plan. By operation of law, the proposed increase will be suspended for up to seven months from its proposed effective date. The Commission voted to open an investigation and assign it to the PUC Office of Administrative Law Judge for a recommended decision or settlement. PUC Commissioners will then make a final decision by April 16, 2009, at a public meeting in Harrisburg. More information on the ratemaking process is available on the Commission’s Web site. The increase would affect about 4,600 residential, commercial and industrial customers in Pike County. According to the company’s filing, the increase is needed to provide sufficient operating revenues to meet operating expenses, taxes and fixed charges, and to provide a reasonable rate of return on the company’s investment in electric property. The commission also voted last Thursday to investigate a proposed base rate increase of $424,900 for 1,200 customers of Pike County Light & Power Company’s Gas Division. The Commission voted unanimously to investigate the proposal that would increase the monthly bill for an average residential customer using 10 Mcf per month from $143.23 a month to $176.31 a month (23.1 percent).