Pennsylvania Public Utility Commission approves three utility infrastructure improvement plans

In a unanimous vote, the Pennsylvania Public Utility Commission (PUC) voted through a set of three long-term infrastructure improvement plans (LTIIPs) to press forward the replacement of an aging utility framework.

The approvals went to PPL Electric Utilities Corp. (PPL), Aqua Pennsylvania Wastewater, Inc. (Aqua PA) and UGI Utilities, Inc – Electric Division (UGI). For approval, the companies’ plans had to establish the way they would accelerate or maintain an accelerated rate of infrastructure repair, improvement or replacement, whether they are sufficient to guarantee adequate and safe service, meet state regulations and contain measures to ensure cost-effectiveness of their projected annual expenditures. The PUC checks to guarantee such plans are adhered to by their utilities.

In all, with these LTIIPs added to existing actual and projected investments, spending should reach nearly $8 billion by 2023. Already 25 utility LTIIPs have been approved in the past four years.

All such measures are authorized under Act 11 of 2012, which allows electric, natural gas and waste/wastewater companies under the PUC’s jurisdiction to use what is called a Distribution System Improvement Charge (DSIC) as a means of fueling infrastructure investments. The LTIIPs are a requirement of such moves.