The Commission voted 5-0 to approve each of the three LTIIPs, which are authorized under Act 11 of 2012 (Act 11) which enables electric, natural gas and water/wastewater companies under the PUC’s jurisdiction to use a Distribution System Improvement Charge (DSIC) to increase the pace of infrastructure improvements.
DSICs reduce the frequency and the associated costs of base rate cases while maintaining a high level of customer protections, but do require a utility to file a LTIIP – which serves as a “roadmap” for infrastructure improvements.
Since 2013, the Commission has approved 25 utility LTIIPs, resulting in a $2.3 billion investment in infrastructure improvement projects through year-end 2016.
The LTIIPs actual and projected investments total nearly $8 billion in needed infrastructure improvements by 2023, further enhancing public health and safety while ensuring reliability and effective service for millions of customers across Pennsylvania.
The Commission thoroughly reviews all filed LTIIPs as well as the required Annual Asset Optimization Plans of the utilities. Additionally, the Commission conducts a periodic review of LTIIPs, as required by law. The Commission’s review through these processes determines if the LTIIP:
-- Specifies the way it accelerates or maintains an accelerated rate of infrastructure repair, improvement or replacement.
-- Is adhered to by the utility.
-- Is sufficient to ensure and maintain adequate, efficient, safe, reliable and reasonable service.
-- Contains measures to ensure that projected annual expenditures are cost-effective.
-- Meets all state regulations.
For more information on this utility infrastructure program, visit the PUC’s Distribution System Improvement Charge webpage.
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