Bill allowing new utility rate structures signed into law

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Gov. Wolf signed into law last week legislation that allows utilities to propose new rate-making approaches.

“The option for utilities to propose new rate-making structures will benefit customers, the Commonwealth of Pennsylvania and utilities,” PPL Electric Utilities President Greg Dudkin said. “As the electric grid evolves to meet new needs, demands, and challenges, the new rate-making options enabled by HB 1782 will help keep it strong for all users.”

The bill would allow utilities to propose new approaches to rate-making, such as decoupling, which separates utility revenues from electricity sale, and performance-based rates.

Utilities would not be required to use alternative rate-making approaches. Any changes to existing rate-making structures would still require approval by the Pennsylvania Public Utilities Commission (PUC).

“We are committed to continuing to deliver reliable, safe and affordable service to customers throughout our 29-county service area,” Dudkin, who testified in favor of the legislation at a hearing of the Pennsylvania House Consumer Affairs Committee last November, said. “This forward-looking law supports the work all Pennsylvania’s electric utilities are doing to adapt and strengthen their delivery networks for the 21st century.”