Under the agreement, the company will receive a base rate increase of 3.8% ($40m annualized) starting June 29, and on January 1, 2011, its base rates will increase by $20m, while current rates for fuel and purchased power cost recovery will decrease by $20m, resulting in no change in overall customer rates at that time. The company has agreed not to file a new general rate case before December 2011, except under extreme circumstances.
Allegheny said that it will also file a home energy efficiency plan focused on helping low-income customers and will continue to contribute to state weatherization programs.
The agreement requires commission approval to be effective. If adopted, the monthly bill for a residential customer using 1,000kWh will increase from $91.78 to $95.88, or by 4.5%, in June.
The company initially requested a $122m increase in an August filing for its Monongahela Power and Potomac Edison subsidiaries. The request was revised to $95m, largely due to securitization of the Fort Martin scrubbers, changes in tax accounting and a lower requested return on equity.
Allegheny said that it has not had a base rate increase since 1994. Base rates reflect the utility’s cost of operations and capital investment. Fuel costs are recovered through a separate clause. To help customers manage their bills, the company offers a budget plan, special payment plans and access to energy assistance programs.
