PUC approves settlement for smaller rate changes for FirstEnergy
Electric rates for FirstEnergy customers may increase by up to 6.2% at the start of the new year, but a settlement approved Thursday, Nov. 21, by the Pennsylvania Public Utility Commission will decrease how significantly the rates will climb.
A 5-0 vote by the commission approved the settlement that limits the overall change in base rates to about $225 million annually. The utility company had requested a change of up to $502 million annually.
The settlement “significantly” reduces FirstEnergy’s proposed rate changes while also securing commitments for infrastructure upgrades and customer assistance program enhancements, according to a Thursday news release from the commission.
The agreement indicates the average residential customer using 1,000 kWh per month will see bill changes ranging from 1.9% to 6.2%.
West Penn Power rate district customers will see their rates raised the most significantly at the 6.2%. The other rate increases are 1.9% for Met-Ed rate district customers, 4.1% for Penelec rate district customers, and 4.5% for Penn Power rate district customers.
The new rates will be effective on or after Jan. 1, 2025, and no further changes in distribution rates for any of FirstEnergy’s Pennsylvania rate districts will be allowed for at least two years.
As part of the settlement, FirstEnergy will issue a one-time bill credit to customers within 30-days as a way to refund $13.6 million, plus interest, that was improperly allocated lobbying expenses.
Further, the company has agreed to improve customer assistance in a way that includes increased hardship fund support and additional funding for the Low Income Usage Reduction Program.
The utility company will also implement initiatives to improve system reliability and customer service, which includes commitments to reduce the average frequency and duration of service outages; completion of an assessment to place certain facilities underground in areas where it would most improve reliability; and annual reviews of call center operations, billing, meter reading, and response to customer complaints.
The settlement was supported by stakeholders, including the Pennsylvania Office of Consumer Advocate, the Office of Small Business Advocate, the utility commission’s independent Bureau of Investigation & Enforcement, the Coalition for Affordable Utility Services and Energy Efficiency in Pennsylvania and others.
