Distribution System Improvement Charges Approved For FirstEnergy Electric Utilities

The Public Utility Commission Thursday approved the petitions of Pennsylvania Power Company (Penn Power), Pennsylvania Electric Company (Penelec), Metropolitan Edison Company (Met-Ed) and West Penn Power Company (West Penn Power), collectively referred to as the FirstEnergy Pennsylvania Companies, to implement distribution system improvement charges (DSICs).

The Commission voted 4-0 to approve the FirstEnergy Pennsylvania Companies’ petitions, which were filed pursuant to Act 11 of 2012 (Act 11).

Act 11 requires and provides for utilities to file long term infrastructure improvement plans (LTIIPs) as part of any action to establish a DSIC to recover reasonable and prudent costs incurred to repair, improve or replace certain eligible distribution property that is part of a utility’s distribution system.

The Commission approved the companies’ LTIIPs, which are required before enacting a DSIC, on Feb. 11, 2016. The companies plan to accelerate infrastructure replacement over a period of five years.

-- Penn Power: On Feb. 16, 2016, Penn Power filed a petition to establish and implement a DSIC rider with an effective date of July 1, 2016. Penn Power estimates an initial DSIC charge of 0.30 percent of customer distribution charges.

-- Penelec: On Feb. 16, 2016, Penn Power filed a petition to establish and implement a DSIC rider with an effective date of July 1, 2016. Penelec estimates an initial DSIC charge of 0.04 percent of customer distribution charges.

-- Met-Ed: On Feb. 16, 2016, Met-Ed filed a petition to establish and implement a DSIC rider with an effective date of July 1, 2016. Met-Ed estimates an initial DSIC charge of 0.03 percent of customer distribution charges.

-- West Penn Power: On Feb. 16, 2016, West Penn Power filed a petition to establish and implement a DSIC rider with an effective date of July 1, 2016. West Penn Power estimates an initial DSIC charge of 0.06 percent of customer distribution charges.

For more information on DSIC, visit the PUC’s Distribution System Improvement Charges webpage.