For Immediate Release
PECO customers to receive full benefit from federal tax savings as part of settlement
PHILADELPHIA (August 28, 2018) – PECO today filed a settlement petition with the Pennsylvania Public Utility Commission (PUC) seeking approval for changes in electric delivery rates beginning January 1, 2019, as well as refunds to customers of federal tax savings from the 2017 Tax Cuts and Jobs Act.
Based on this settlement, overall customer bills would increase approximately 1 percent beginning January 1, translating to a $1.27 increase on the total monthly bill for a typical residential electric customer using about 700 kilowatt hours of electricity.
As part of the settlement, the typical PECO residential customer will receive a one-time bill credit of approximately $30 in January 2019 relating to benefits of the 2017 tax act.
"We are pleased to have arrived at this settlement, allowing PECO to continue our commitment to delivering safe and reliable service for our customers and the communities we serve," said Mike Innocenzo, PECO president and CEO. "We are particularly pleased that we were able to work with our stakeholders to quickly provide the tax savings to customers that will more than offset the rate increase for the first year."
The new rates will provide for enhancements to PECO's electric distribution system and services, including infrastructure and technology upgrades that will help PECO maintain its record-breaking safety and service reliability, and help PECO customers better manage their bills and energy usage. PECO also looks to encourage economic development and environmental stewardship through this settlement, assisting in development of publicly available electric vehicle fast charging stations and encouraging the use of energy efficient smart street lighting.
Further, as part of the settlement, PECO has committed to working closer with various community-based organizations to help PECO customers establish eligibility for assistance programs. PECO will also increase its budget for its Low-Income Usage Reduction Program (LIURP) by an additional $1 million per year.
For PECO's commercial customers, the rate case settlement translates to an increase of $2.96 per month for typical small business customers. As a result of the 2017 Tax Cuts and Jobs Act, the average small business customer will receive a one-time bill credit of $126 in January 2019.
The settlement and rate request must be approved by the PUC before any rate changes or tax refunds take effect.
To learn more about our filings visit peco.com/rates or call 1-800-494-4000.
PECO, founded in 1881, is Pennsylvania's largest electric and natural gas utility. Headquartered in Philadelphia, PECO delivers energy to more than 1.6 million electric customers and more than 516,000 natural gas customers in southeastern, Pennsylvania. The company's 2,500 employees are dedicated to the safe and reliable delivery of electricity and natural gas as well as enhanced energy management conservation, environmental stewardship and community assistance. PECO was named 2017 Best Midsize Employer in Philadelphia by Forbes Magazine. The company also has an estimated annual economic impact of $4.3 billion in Pennsylvania, supporting more than 8,700 local jobs and producing $732 million in labor income. PECO is a subsidiary of Exelon Corporation (NYSE: EXC), the nation's only Fortune 100 utility and leading competitive energy provider. For more information visit PECO.com, and connect with the company on Facebook and Twitter.
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