Last week, in a filing to the Pennsylvania Public Utility Commission, PECO requested an increase in the rates they charge their customers. In the same filing is a proposed plan to provide annual tax savings to more than 1.6 million Southeastern Pennsylvania customers.
Based on the company’s request, energy delivery rates could increase about 2.2 percent over current rates starting on January 1, 2019. Specifically, the total monthly bill for a typical residential electric customer using about 700 kilowatt hours of electricity would increase by about $3.28, bills for typical small business customers would increase about $11.06 per month and bills for a typical large business customer would increase about $168.99.
According to a press release from PECO, the new electric delivery rate would provide funding for enhancements to the PECO electric distribution system and services, including infrastructure and technology upgrades that could help PECO maintain its safety and service reliability by strengthening the system against weather and other hazards; support innovative online and mobile tools that make it easier for customers to manage energy, use, pay bills, use customer-generated energy sources and more; and encourage economic development and environmental stewardship in our service territory.
The tax savings component is a result of federal income tax reductions under the 2017 Tax Cuts and Jobs Act. According to PECO, they are seeking PUC approval to pass the full benefit of the law onto customers, including an estimated $68 million, would could offset the proposed rate increase.
“Our commitment to reliability is fundamental to the work that we do,” said Mike Innocenzo, PECO senior vice President and COO. “That commitment requires that we invest in our electric delivery system to prevent outages, reduce the duration of outages and to prepare for the future energy needs of our customers.”