Saturday, September 1, 2012

Status Of PPL Rate Requests

1) Distribution:

On February 28, 2012, PPL filed a Notice of Intent with the PUC to increase  “distribution rates and will allow the Company to begin to recover the costs incurred since 2010 for the improvement and expansion of its distribution system. The request also will reflect increases in operation and maintenance costs since 2010, including costs associated with major storm events, programs to enhance retail electric competition and customer education.”

PPL filed for a distribution  rate hike  of $104.6 million. PPL acknowledged the proposal “would produce an average increase in distribution rates of approximately 13%.” However, the actual rate increase for the average residential electric electric bill would be 16.5% or a $7.00 per month according to the Office of Consumer Advocate.

Reply briefs due:  September 14, 2012.
Effective: January 1, 2012.

2) Default Service Program and Procurement Plan for the Period June 1, 2013 through May 31, 2015

On May 1, 2012, PPL Electric filed a Petition requesting approval for the terms and conditions under which the Company will acquire supply and provide Default Service from June 1, 2013 through May 31, 2015 ("DSP”) including  a proposal for competitive procurement of Default Service supply and related Alternative Energy Credits ("ABCs"); an implementation plan; a proposed rate design, including a Time-of-Use ("TOU") rate for Default Service during the DSP II Program Period; an explanation of Regional Transmission Organization ("RTO") compliance and consistency; and a contingency plan for the DSP Program. The filing also contained several proposals designed to enhance retail competition in PPL Electric's service area.  (PPL Electric).

Two issues of note for County residents: 1) How customers are notified after their initial contract expires and whether the cost of paying for enhancing retail competition will fall on the shoulders of rate payers or suppliers.

Reply brief: October 19, 2012.
Effective date: June 1, 2013- May 31, 2015.


The DSIC is an automatic adjustment charge that enables companies to recover certain infrastructure improvement costs between base rate cases through a quarterly surcharge on customers’ bills.  The DSIC resets to zero when a company files a base rate case or if the utility is over-earning. The company also must notify customers of any change in the DSIC. An annual reconciliation audit is conducted by the PUC to ensure that no over-collections or under-collections have occurred.

The DSIC allows  companies to use a surcharge to fund more upgrades of aging infrastructure that would not otherwise be feasible at a reasonable rate for customers. (Pa PUC)

In 2004,  PPL's request for a distribution system improvement charge was not approved.

Filing date: November , 2012.
Effective date: TBD.

4) As needed costs: Pass through in transmission charges from the PJM Interconnection, the regional power pool.

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