PA Environment Digest

The Public Utility Commission Thursday issued for comment a Tentative Order that begins the implementation of Act 11 of 2012, which among other things, provides for a distribution system improvement charge (DSIC) for electric, natural gas, water and wastewater utilities. (Docket #M-2012-2293611)

The Commission voted 5-0 to receive comments on the Tentative Order that addresses the Act 11 initiatives that allow electric, natural gas, water and wastewater utilities to petition for the use of a DSIC to fund infrastructure upgrades.

The Tentative Order contains information on:

-- Establishing procedures for implementation of a voluntary DSIC for utilities;

-- Filing long-term infrastructure improvement plans;

-- Revising the method used to fix the value of and return on the property for ratemaking purposes;

-- Establishing procedures for the use of a fully-projected test year in base rate proceedings;

-- Allowing utilities to combine for ratemaking purposes different types of utility service; and

-- Establishing customer protections and notifications.

On February 14, 2012, Gov. Corbett signed Act 11 of 2012, which allows jurisdictional water and wastewater utilities, natural gas distribution companies, city natural gas distribution operations, and electric distribution companies to petition the Commission for approval to implement a DSIC.

Under the law, the DSIC must be designed to provide for "the timely recovery of the reasonable and prudent costs incurred to repair, improve or replace eligible property in order to ensure and maintain adequate, efficient, safe, reliable and reasonable services.

Interested parties have 20 days from the entry of the Tentative Order to comment on these proposed changes. Specific instructions on how to submit comments may be found in the Order. The Tentative Order will be finalized based on these comments.

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