May. 02, 2018
HARRISBURG – The House on Tuesday approved legislation authored by Rep. Sheryl Delozier (R-Cumberland) that would allow electric companies to change how they set their rates to adapt to new technologies.
“It is imperative that our electric grid is safe and reliable,” Delozier said. “Electric utilities invest billions of dollars annually to meet protect the integrity of the distribution network and improve the delivery system in order to meet everyone’s needs for safe, affordable and reliable service. As customers begin to generate their own electricity through solar and other means, the grid and service must still be maintained. My legislation allows electric companies to change to alternative ratemaking to keep the lights on. Over 30 states have done some form of alternative ratemaking.”
House Bill 1782 would allow the Public Utility Commission (PUC) to approve the use of alternate ratemaking mechanisms by utilities. This bill does not add to the amount a company is approved to earn or recover from ratepayers. This continues to be determined by the PUC. It also does not change the type of costs that may be recovered by a utility through rates. The bill clarifies the PUC’s authority to approve the use of alternative rate mechanism. These mechanism could be used to recover capital costs and expenses to provide service as they do now, and the PUC retains the ability to approve such recovery. Alternate ratemaking includes decoupling, performance-based rates, formula rates and multiyear rates. Under the bill, customers must be informed of a utility’s application to deploy these types of rates.
The bill now goes to the Senate for consideration.
The 88th Legislative District in Cumberland County includes Lower Allen and Upper Allen townships and the boroughs of Lemoyne, Mechanicsburg, New Cumberland, Shiremanstown and Wormleysburg.
Representative Sheryl Delozier
88th District
Pennsylvania House of Representatives
Media Contact: Tracy Polovick
717.260.6358
tpolovick@pahousegop.com
RepDelozier.com /
Facebook.com/RepDelozier