PUC Launches Review of Utility Ratemaking to Address Affordability, Transparency and Changing Economic Conditions
New working group will examine return on equity, rate case transparency and opportunities to modernize regulatory processes
HARRISBURG – Against a backdrop of rising utility costs, growing affordability concerns and significant changes across Pennsylvania’s utility sectors, the Pennsylvania Public Utility Commission (PUC) today launched a broad examination of key elements of the state’s utility ratemaking process.
The Commission voted 5-0 to approve a motion by Chairman Steve DeFrank, directing the creation of a Ratemaking Working Group (RWG) to examine potential improvements to longstanding ratemaking processes – with an initial focus on return on equity (ROE), transparency in rate case settlements and the methodology used to establish returns associated with Distribution System Improvement Charges (DSIC).
“The world around our utility system is changing, and our regulatory processes cannot simply stand still,” Chairman DeFrank said. “Our responsibility is to make sure every dollar recovered from customers is carefully scrutinized while ensuring utilities can make the prudent investments necessary to provide safe, reliable service. This is about examining whether our ratemaking pr…