– A bill authored by Rep. Sheryl Delozier (R-Cumberland) that allows electric and natural gas companies to change how they set their rates to adapt to new technologies is now law.
“When flipping a light switch or trying to use an appliance, it is frustrating when no power flows,” Delozier said. “Our energy companies work to make sure our grid is healthy and has enough power. As a regulated industry, they are caught between energy efficiency, maintaining the infrastructure, fulfilling mandated requirements for our low-income residents and promoting energy use, which their earnings are based on. This new law will allow for safe, affordable and reliable service through PUC approved alternative ratemaking options. More than 30 states already offer utilities the option of using some form of alternative ratemaking.”
Act 58 of 2018
allows utility companies to change how they generate the approved level of earnings, while adapting to new technologies. The law strikes a balance between encouraging energy efficiency and assisting utilities with funding necessary improvements to the distribution network. More specifically, the law allows the Public Utility Commission (PUC) to approve the use of alternate ratemaking mechanisms by utilities. It does not add to the amount a company is approved to earn or recover from ratepayers and does not change the type of costs that may be recovered by a utility through rates. Alternate ratemaking includes decoupling, performance-based rates, formula rates and multiyear rates. Under the law, customers must be informed of a utility’s application to deploy these types of rates.
The law takes effect in 60 days.
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
Pennsylvania House of Representatives
Media Contact: Tracy Polovick