It’s also promising Philadelphia customers a refund from lower 2018 taxes.
On Thursday, March 30, PECO filed for an electricity rate increase with the Pennsylvania Public Utilities Commission. The Philadelphia area utility’s request will increase electricity delivery charges by 2.2% starting on January 1, 2019.
If approved by the PA PUC, electric rates for Philadelphia residential customers using 700 kWh per month could see an estimated increase in their monthly bill’s distribution charge by $3.28. The increase would affect to ALL PECO customers no matter what electric supplier they have.
PECO intends to use the estimated $82 million in additional income to cover the rising price of electric distribution improvements, notably from major storms and managing load . Other expenses include supporting online and mobile tools to make it easier for customers to manage and shop for electricity as well as pay bills and use customer-generated energy sources.
PECO taketh away; PECO doth refundeth.
PECO plans on refunding approximately $68 million to its customers. The refund comes from PECO’s reduced tax expenses for 2018 that result from the federal Tax Cuts and Jobs Act (TCJA). Customers shouldn’t expect checks in the mail because their refund in their electric rates will show up on their bills as a “reconcilable surcharge” credit. PECO says that because the refund will offset increased rates that their proposal is just and reasonable.
Just how much electric rates will be offset is unknown. Depending when and if the PUC approves the rate change, consumers who will shop for Philadelphia electric suppliers this coming spring and summer will need to keep an eye out for the refund amount when it is announced.
PECO’s last rate increase was in 2015.