More than 107,000 electricity customers in Northeast and Central Pennsylvania counties will pay 2% to 6% higher rates starting in January.
The state Public Utility Commission voted 5-0 on Nov. 21 to approve a settlement that cuts FirstEnergy Pennsylvania Electric Co.’s rate hike requests by more than half.
Overall, FirstEnergy serves approximately 2.1 million customers in 56 Pennsylvania counties through its Met-Ed, Penelec, Penn Power and West Penn Power districts. The Northeast and North-Central Pennsylvania customers live in Bradford, Clinton, Lycoming, Monroe, Pike, Sullivan, Susquehanna, Tioga, Wayne and Wyoming counties.
In April, FirstEnergy sought a rate hike totaling $503.85 million.
In September, the company reached a settlement to slash the hike to $225 million. The settlement is with the PUC, state business and consumer advocates, unions and other advocates.
Under the settlement, here are the new monthly bills for residential customers in the northeast and north-central counties using 1,000 kilowatt-hours a month:
- Met-Ed, $191.19, average increase, 1.9%, or $3.49.
- Penelec, $209.29, average increase, 4.1%, or $8.33.
- West Penn, $166.07, average increase, 6.2%, or $9.70.
Under the settlement, FirstEnergy can’t ask for higher rates again until at least Jan. 1, 2027.
The company said it needs higher rates to:
- Automate its grids to reduce the scope and duration of power outages.
- Increase inspections that could lead to replacement of aging equipment.
- Convert about 85,000 streetlights to energy-efficient LEDs.
- Remove more than 2.4 million trees and overhanging limbs that threaten poles and 14,000 miles of wires.
- Create a team to increase awareness of programs meant to help low-income customers pay bills.
- Eliminate service fees for customers who pay with credit cards.
- Create an electric vehicle pilot program that provides rebates to encourage customers to install home chargers.
The settlement requires the company to:
- Use state data to make it easier for low-income residents to enroll in a program that helps them pay heating bills and to keep them enrolled.
- Within six months, the company must seek PUC approval to automatically enroll people who aren’t in the program.
- Contribute $2 million more a year for the next three years to the heating aid program, plus $500,000 more a year in matching funds.
- Increase spending on programs that allow low-income residents to reduce electricity use by at least the same amount as the rate hikes.
- Improve system reliability and customer service to the reduce the frequency and length of outages.
- Determine by the end of next year where moving wires underground would most reduce outages.
- Audit performance, including annual reviews of call center operations, billing, meter reading and response to customer.
- Refund $13.6 million plus interest to customers for improperly allocated lobbying expenses. Customers will get a one-time bill credit on their January bills: Met-Ed customers, $6.13; Penelec, $5.78; and West Penn, $4.18, company spokesman Todd Meyers said in an email.
Penelec’s territory includes all of Bradford County, 23,116 customers; part of Lycoming County (Cascade, Gamble, Jackson, Lewis, McIntyre, McNett and Plunketts Creek townships); all of Sullivan County, 3,392 customers; all of Susquehanna County, except for Clifford and Herrick townships and Forest City and Union Dale boroughs, 13,726 customers; all of Tioga County except for Wellsboro Borough and Middlebury Twp., 12,548 customers; part of Wayne County (Starrucca Borough and Buckingham, Manchester, Preston and Scott townships), 3,626 customers; all of Wyoming County except for Clinton, Monroe, Noxen and Overfield townships and Factoryville Borough, 8,552 customers.
Met-Ed’s territory includes part of Monroe County (Delaware Water Gap, East Stroudsburg and Stroudsburg boroughs and Chestnuthill, Hamilton, Middle Smithfield, Price, Ross, Smithfield and Stroud townships), 24,360 customers; and part of Pike County (Delaware, Dingman and Lehman townships), 16,623 customers.
West Penn’s territory includes part of Clinton County (Beech Creek Borough and Beech Creek, Chapman, East Keating, Gallagher, Grugan, Lamar, Leidy, Porter and West Keating townships).
In Lycoming County, the 1,416 customers facing rate hikes get electricity from either Penelec or West Penn. About 600 are West Penn Power customers, about 800 Penelec.
