Duquesne Light files for review of its distribution rates

Published on March 22, 2024 by Dave Kovaleski

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Duquesne Light Company (DLC) is asking the Pennsylvania Public Utility Commission (PUC) to review its distribution base rates.

DLC is requesting an overall rate increase of $101 million to enhance grid capabilities and reliability. The proposal aims to strengthen the grid with more durable equipment and advanced technologies to stand up to extreme weather. The investment would improve service to more than 600,000 customers in Allegheny and Beaver counties.

Residential customers using 600 kilowatt-hours (kWh) per month could see their bill increase about 6.5 percent, on average, from $130.67 to $139.19 per month. Commercial customers using 10,000 kWh per month could expect to see an increase from $1,207.43 to $1,283.46 per month, or 6.30 percent. Also, industrial customers using 200,000 kWh per month could see an increase from $19,421.64 to $20,610.56 per month, or 6.12 percent.

The proposed rate changes – the first increases in DLC’s distribution base rates in three years — would take effect on or before Jan. 1, 2025. DLC is also seeking to transfer $32 million in surcharges, currently paid by customers for equipment upgrades, to base rates.

“Our customers have greater expectations of the grid than ever before. Continuing to provide safe, reliable and resilient electric service in the face of changing climate dynamics is a critical responsibility that we take very seriously,” Kevin Walker, president and CEO of DLC, said. “Beyond these basics, we must also invest to ensure that the grid is nimble, intelligent and responsive enough to support the evolving expectations placed upon it as we progress through our region’s clean energy transition. Doing this well will give our customers, friends and neighbors a competitive advantage and contribute to a bright, equitable future for all.”

Among the investments included in DLC’s proposal, the company is looking to construct a new substation in Pittsburgh’s Uptown neighborhood; add customer-facing tools such as a new outage map, proactive notifications and an upgraded automated phone system; install modern streetlights that have advanced capabilities; support vegetation management; and
Build more EV charging infrastructure.