Pennsylvania Utility To "Unbundle" Costs As Part of Default Service Settlement

A settlement in Duquesne Light's default service plan proceeding (DSP VIII) for the period June 1, 2017 through May 31, 2021 would require the utility to "unbundle" certain costs from distribution rates, with recovery moved to bypassable default service rates.

Costs to be transferred from delivery rates to default service rates include the costs of preparing and filing default service procurement plans with the PUC and working capital for default service supply.

Such unbundled costs to be included in default service rates are estimated at $1.3 million on an annualized basis

Default service rates are to be increased in order to recover unbundled costs, which will increase the Price to Compare. In order to recover unbundled costs, Duquesne Light will increase the default service rates of the residential, small and medium procurement groups using the allocated dollar amounts and the forecast default service MWh as provided in the settlement. Duquesne Light is to also increase the proposed fixed retail administrative charge in Rider No. 9 for the large procurement group using the same allocated dollar amounts and the forecasted default service MWh

The settlement was signed by Duquesne Light, the Office of Consumer Advocate, the Office of Small Business Advocate, the Coalition for Affordable Utility Service and Energy Efficiency in Pennsylvania, the Retail Energy Supply Association, and Exelon Generation Company, LLC