Peco, citing the need for “significant” upgrades to the local electric grid and for pandemic-related customer relief, on Tuesday filed a request seeking a $246 million electric rate increase that would boost a typical monthly residential bill by about $9.68, or 9.65%.
As part of its proposal, Peco is seeking $1.5 million of incentives for electric vehicle charging infrastructure to support commercial, industrial, and public transit customers, “with a focus on reducing emissions in disadvantaged communities,” according to a company statement. The Peco proposal would provide $2.7 million in bill relief for low-income customers and $1 million in bill credits to qualifying small businesses in low-income communities impacted by the pandemic.
At the end of February, 146,000 Peco electric and gas customers were at risk of shutoffs. They owed $218.5 million, up 88% from a year ago. The rate increase would affect only Peco’s distribution charges, which make up more than half of a typical residential bill. The increase would not affect energy charges, which some customers buy from third-party suppliers. Peco adds no markup on energy it buys for default service customers that it supplies.
I find it interesting that PECO is openly acknowledging the poor timing of their proposed rate increase, as thousands of their customers are still behind on their bills due to COVID-19. Although PECO's proposal includes funding for low-income customer bill relief, it's clear that current assistance programs offered through PECO and otherwise are not doing enough to make energy consistently affordable for customers, and that this proposed relief program will not be sufficient to relieve currently energy vulnerable customers of their energy burdens and customers who will likely become energy vulnerable if their PECO bill increases.
Andrew Maykuth, "Peco seeks electric rate hike that would boost bills by 9.65%, citing grid costs and COVID-19", contributed by Morgan Sarao, The Energy Rights Project, Platform for Experimental Collaborative Ethnography, last modified 2 July 2021, accessed 19 April 2024. https://energyrights.info/content/peco-seeks-electric-rate-hike-would-boost-bills-965-citing-grid-costs-and-covid-19
Critical Commentary
Peco, citing the need for “significant” upgrades to the local electric grid and for pandemic-related customer relief, on Tuesday filed a request seeking a $246 million electric rate increase that would boost a typical monthly residential bill by about $9.68, or 9.65%.
As part of its proposal, Peco is seeking $1.5 million of incentives for electric vehicle charging infrastructure to support commercial, industrial, and public transit customers, “with a focus on reducing emissions in disadvantaged communities,” according to a company statement. The Peco proposal would provide $2.7 million in bill relief for low-income customers and $1 million in bill credits to qualifying small businesses in low-income communities impacted by the pandemic.
At the end of February, 146,000 Peco electric and gas customers were at risk of shutoffs. They owed $218.5 million, up 88% from a year ago. The rate increase would affect only Peco’s distribution charges, which make up more than half of a typical residential bill. The increase would not affect energy charges, which some customers buy from third-party suppliers. Peco adds no markup on energy it buys for default service customers that it supplies.
I find it interesting that PECO is openly acknowledging the poor timing of their proposed rate increase, as thousands of their customers are still behind on their bills due to COVID-19. Although PECO's proposal includes funding for low-income customer bill relief, it's clear that current assistance programs offered through PECO and otherwise are not doing enough to make energy consistently affordable for customers, and that this proposed relief program will not be sufficient to relieve currently energy vulnerable customers of their energy burdens and customers who will likely become energy vulnerable if their PECO bill increases.