READING, PA — FirstEnergy Pennsylvania Electric Company (FE PA), operating as Met-Ed, Penn Power, Penelec, and West Penn Power, recently reached a $225 million settlement in its base rate review, pending approval from the Pennsylvania Public Utility Commission (PaPUC). This agreement aims to balance the needs of various stakeholders while expanding assistance programs for low-income customers and investing in critical grid improvements.
John Hawkins, President of FirstEnergy’s Pennsylvania operations, emphasized the importance of the settlement, stating, “This settlement will amplify our efforts to connect our lower-income customers with a wide variety of bill assistance programs while also making meaningful upgrades to our electric system to enhance reliability for customers.”
Key highlights of the settlement include increased funding for vegetation management to improve electric service reliability and investments through the Long-Term Infrastructure Improvement Plan III (LTIIP III) to enhance power lines and substations. Additionally, the agreement proposes selective underground placement of distribution facilities to further improve reliability.
The settlement also aims to boost annual funding for Hardship Fund grants by $2 million for three years starting in 2025, increasing the maximum grant to $600. This is intended to aid eligible customers at risk of service termination. Moreover, a new process will utilize income data from the Pennsylvania Department of Human Services to enhance enrollment and retention in the Customer Assistance Program.
If ratified, the settlement will lead to modest rate increases for residential customers using 1,000 kilowatt-hours per month, with rates rising between 1.9% and 6.2% across the different service areas. The proposed effective date for the new rates is January 1, 2025, aligning the average monthly bill for FE PA customers with the statewide average for other major electric companies in Pennsylvania.
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