Pennsylvania Public Utility Commission

11/07/2024 | Press release | Distributed by Public on 11/07/2024 10:43

PUC Approves Settlement for Substantially Smaller Rate Changes by Duquesne Light Company

PUC Approves Settlement for Substantially Smaller Rate Changes by Duquesne Light Company

Published on 11/7/2024

Filed under: Electric

Settlement Looks to Increase Accessibility in the Company's Customer Assistance Programs and Incentivize EV Mobility in the Pittsburgh Region

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today approved a joint settlement that includes substantially smaller changes in electric distribution rates for customers of Duquesne Light Company (Duquesne Light), and also enhances the utility's customer assistance programs and provides new incentives and rate structures further promoting electric vehicle (EV) mobility throughout in the Pittsburgh region.

The Commission voted 5-0 to adopt the Recommended Decision of PUC Deputy Chief Administrative Law Judge Mark A. Hoyer and approve the joint settlement - which is broadly supported by the Pennsylvania Office of Consumer Advocate, the Office of Small Business Advocate, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania (CAUSE-PA), the Pennsylvania Weatherization Providers Task Force, Inc., Walmart Inc., the PUC's independent Bureau of Investigation and Enforcement, and Duquesne Light.

The rate changes included in the settlement are intended to produce increased distribution operating revenues of $85.1 million - which includes $32.1 million of revenues currently recovered under surcharges. The result is a net increase to customers over current charges of $53 million - which is a nearly a 50% reduction from Duquesne Light's initial request of $101 million, exclusive of the revenues currently recovered under the surcharges, filed on March 20, 2024.

Under the joint settlement, the total monthly bill for an average residential customer using 600 kilowatt-hours (kWhs) will increase from $130.67 to $135.88 (3.99%). Under the company's proposal, the total monthly bill for an average residential customer using 600 kWhs would have increased from $130.67 to $139.19 (6.52%). As part of the settlement Duquesne Light agrees to not file a proposed general increase in distribution rates prior to March 20, 2026.

Additionally, with this settlement Duquesne Light agrees to a series of enhancements to its consumer assistance programs (CAPs) to increase accessibility, coordination and communication with the company's most economically vulnerable customers. The company also will permit auto-recertification of customers in CAP based on LIHEAP data from the Pennsylvania Department of Human Services (DHS) - an initiative on which the PUC has collaborated with DHS.

Other key terms and conditions of the joint settlement include:

  • Duquesne Light's contribution of $350,000 per year in shareholder funding to its Hardship Fund for 2025, 2026 and 2027.
  • The company increasing its existing Smart Comfort Low Income Usage Reduction Program (LIURP) budget by $300,000 per year, resulting in a total annual budget of $3.753 million.
  • Enhancements to Duquesne Light's Transportation Electrification (TE) Portfolio to include approval of the company's Community, Fleet and Transit pilot as well as annual reporting on progress in serving low-income customers and Electric Mobility Priority Areas.
  • Adoption of Duquesne Light's whole home Electric Vehicle (EV) Time-of-Use rate structure that will be applied to the kWh distribution rates for the residential classes.

Over the next six months Duquesne Light is directed to work with stakeholders to develop and implement a plan for low-income engagement in TE initiatives as well as explore the development of a new EV distribution rate specifically for public-facing EV chargers.

Duquesne Light serves more than 600,000 customers in parts of Allegheny and Beaver counties.

About the PUC

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Docket No.: R-2024-3046523

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