Duquesne Light seeks 4.2% rate hike in January
Duquesne Light Co.’s proposal to raise the electric bills of its 600,000 residential and commercial customers this winter should be approved by state regulators, an administrative law judge recommended this week.
Under terms of the proposed settlement, Duquesne Light would raise rates by $4.23 a month, or 4.23%, on the average residential customer using 600 kilowatt hours per month. The utility wants to boost rates on commercial customers by about $37 a month, or a 4.2% increase; industrial customers would see their rates rise by about $353 per month, or 2.1%.
If approved by the Public Utility Commission, the rate hike would take effect in January, and would be its first since 2018, said Duquesne Light, which serves close to 600,000 customers in Allegheny and Beaver counties.
The utility initially sought to raise monthly rates by about $7.73 on its average residential customer, the PUC said, but the offices of the Consumer Advocate and Small Business Advocate argued in April that Duquesne Light did not provide sufficient information to support such a hike.
Settlement discussions on the proposed rate hike ensued and the administrative law judge made a recommendation on Oct. 12 that the PUC approve it. The PUC board can accept, reject or modify all or part of the recommendation, said Nils Hagen-Fredericksen, a PUC spokesman. A decision is due by Jan. 15, Fredericksen said.
By cutting back on Duquesne Light’s initial rate hike that would have generated $115 million in annual revenue, the PUC said the utility agreed to accept lower rates, paring down the revenue figure to $74 million.
All of the parties involved in the case, such as consumers, small business advocates and low-income advocates, have until Oct. 22 to comment on the law judge’s recommendation.
As part of the settlement, Duquesne Light agreed to make a $1 million donation toward payment assistance programs for low-income customers for two years, and establish a community development rate to reduce distribution costs for new and expanding businesses, the company said.
Joe Napsha is a TribLive reporter covering Irwin, North Huntingdon and the Norwin School District. He also writes about business issues. He grew up on Neville Island and has worked at the Trib since the early 1980s. He can be reached at jnapsha@triblive.com.
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