Customers of West Penn Power Co. will be hit with a rate hike beginning next year and Columbia Gas of Pennsylvania customers will see their natural gas bills rise starting Dec. 14.
The price hikes, though, will be less than the region’s two utilities initially requested, according to the state Public Utility Commission’s approvals on Thursday.
West Penn’s residential customers will see an average 6.2% rate hike starting Jan. 1, which will boost a customer’s electric bill by $9.70 to $166 a month, according to the PUC. The increase in residential customers’ bills is based on a usage of 1,000 kilowatt-hours per month, the PUC said.
The PUC board unanimously approved the $225 million settlement that the commission staff reached in September with FirstEnergy Pennsylvania Electric Co. for its four Pennsylvania subsidiaries — Greensburg-based West Penn Power, Penn Power, Penelec and Metropolitan Edison. The revenue-generating rate hike was less than the $502 million rate hike FirstEnergy sought for its 2.1 million customers in Pennsylvania, the PUC said.
Had the PUC agreed to FirstEnergy’s request for a $503 million rate hike on distribution costs that the utility made in April for its four Pennsylvania utilities, the average West Penn Power residential customers using 1,000 kilowatts would have seen their monthly bill rise by 10.6%, from $156 to a month to almost $173, according to the recommended decision that PUC law judges filed on Oct. 10. It’s initial rate hike request would have generated $169.7 million from West Penn’s 746,000 customers, according to the filing.
The FirstEnergy rate hike was opposed by the state Office of Consumer Advocate and a group of FirstEnergy industrial users, according to the PUC filings.
FirstEnergy said in September that the rate hike settlement it reached with the PUC was in line with the statewide average for typical customers served by the three other major electric companies in the state. The company said it will be able to invest in its electric grid through a long-term infrastructure plan.
West Penn spokesman Todd Myers said the rate increase will enable the company to expand its assistance to low-income customers. FirstEnergy said it will be able to increase its allocation for its Hardship Fund grants by $2 million above current levels, for a three-year period starting next year. Eligible customers would see the maximum Hardship Fund grant increase to $600 to assist those whose electric service has been or is at risk of termination.
Columbia Gas
In a partial settlement with the PUC, the typical Columbia Gas residential customer will see their monthly bill jump from $118 to $128, a 9.0% increase beginning Dec. 14.
Columbia Gas accepted a rate hike that would generate $74 million annually, instead of the company’s initial request to receive $124.1 million for the rate hike, a 40% reduction, the PUC said. The gas company wanted to raise the average residential customer’s monthly bill to $137, the PUC said.
Columbia Gas said in a statement that the rate case settlement approved by the PUC on Thursday supports the natural gas company’s continued and significant improvements to its gas distribution system. The company serves 445,000 customers across 26 counties in Western and South-central Pennsylvania.
The PUC said it rejected Columbia Gas’ proposed municipal levelization charge, which would have given Columbia Gas the right to charge or credit a customer’s bill based on permitting and restoration fees charged by the municipality where the customer lives.
The settlement includes measures to improve Columbia Gas’ affordability programs, such as increasing its budget for its low-income usage reduction program by $800,000. Low-income customers with delinquent bills are eligible for a customer assistance program’s bill forgiveness program.
Even with this rate hike, Columbia Gas said the average total bill for a residential customer will be 28% less than 20 years ago, when adjusted for inflation.