The Pennsylvania Public Utility Commission voted to suspend and investigate proposed rate changes at the Pennsylvania Water and Sewer Authority and Duquesne Light, the PUC announced Thursday.
The PWSA proposed multi-year rate increases for water and storm water service and multi-year rate decreases for wastewater service.
Duquesne Light proposed rate increases that would increase the monthly bill for residential customers using 600 kWh per month from $100.12 to $107.85, or 7.72 percent.
PUC press secretary Nils Hagen-Frederiksen says an investigation is the standard practice when a utility company wants to change its rates.
He called it the PUC's most serious responsibility.
"[Utility companies] bear the burden of demonstrating to the PUC in the course of this investigation that these changes are necessary for them to ensure safe and reliable service and are also fair and reasonable," he said.
The PUC has to reach a decision by Jan. 12. In the meantime, they'll hear from the companies, experts and the public.
"That, for an individual consumer, is probably your best opportunity to step forward and talk about how you believe this request is going to impact you," Hagen-Frederiksen said.
The PUC expects to release more details in the coming weeks about public comment opportunities.
In a statement to News Radio KDKA, Duquesne Light said they were "looking forward to working with [the PUC] through this process."
Duquesne Light Company (DLC) is lighting the way toward a sustainable future for its 600,000-plus customers in Allegheny and Beaver counties. On April 16, DLC requested a regulatory review of its distribution rates with the Pennsylvania Public Utility Commission (PUC) so it can continue making the critical infrastructure investments needed to deliver safe and reliable power and meet the demands of the future. Additionally, the company is proposing expanded relief for its customers experiencing the harsh financial impact of the COVID-19 pandemic and economic recovery initiatives to stimulate the local economy.
On May 20, the PUC began a formal review of DLC’s request so they can fully assess the proposal before making a final decision. The PUC routinely investigates all general rate increase requests to balance the interests of customers and utilities. DLC looks forward to working with them through this process.
In response to COVID-19, DLC has led a number of efforts to support its customers, including a suspension on service terminations for more than a year, temporarily waiving late fees, offering flexible payment arrangements, launching its Here to Help and Business Center resources, expanding income eligibility for payment assistance and providing an extra $750,000 to its hardship fund, as well as contributing $500,000 to The Pittsburgh Foundation’s Emergency Action Fund for COVID-19 relief efforts.
DLC has requested $85.8 million in incremental annual distribution revenue to upgrade existing equipment, install new distribution infrastructure across its service territory, expand financial relief offerings, engage in economic recovery efforts and support the region’s transition to electric mobility. These investments will allow DLC to maintain one of the highest levels of electric service reliability in the state while providing customers with the necessary assistance to maintain affordable electric service.
If the current requested rate is approved:
· Residential customers using 600 kilowatt-hours (kWh) per month could see their bill increase by about $7.73 (or 7.72 percent) per month.
· Commercial customers using 10,000 kWh per month could expect to see an increase of $54.85 (or 6.36 percent) per month.
· Industrial customers using 200,000 kWh per month could see an increase of $700.26 (or 4.23 percent) per month.
If approved in full, the proposed increase would become effective on Jan. 15, 2022, and would be the first increase in distribution base rates since December 2018.
Anyone interested in learning more about DLC’s request can visit DuquesneLight.com/LightingTheWay or call Customer Service at 1-888-664-6579.
The PWSA did not respond to a request for comment.