PECO to hike rates for first time in decade, invest $69M in infrastructure
PECO, the Philadelphia Electric Co., is seeking approval from the Pennsylvania Public Utility Commission (PUC) to increase rates due in large part to a $69 million investment in the natural gas system.
This would be PECO’s first natural gas rate increase in 10 years. The changes are expected to take effect on July 1, 2021.
With the proposed rate increase, the average residential customer would see a monthly bill increase of 9 percent, or about $7. The average small business customer would see a similar monthly bill increase of about 9 percent, or about $31. Even with these hikes, the rates would be 11 percent lower than 10 years ago due to lower natural gas supply costs and energy efficiency.
The $69 million investment would go to targeted, critical infrastructure to modernize and enhance the natural gas system. Further, it will be used to launch customer programs that expand the natural gas system, which include $3.5 million in energy efficiency rebates for high-efficiency furnaces, boilers, and water heater systems that meet ENERGY STAR® requirements. It will also reward efficiency and assist low-income customers with a total of $1 million in support. It will also include a $500,000 small business grant program providing a natural gas bill credit of $500 to qualifying small businesses demonstrating financial hardship.
“This filing is an integral step in our mission to deliver safe and reliable natural gas service for our customers across southeastern Pennsylvania,” PECO President and CEO Mike Innocenzo said. “We recognize that the effects from the COVID-19 pandemic are far from over. However, these necessary and strategic investments will enhance the safety and reliability of our natural gas infrastructure and will help our customers save energy and money in the long run.”
