The Public Utility Commission Thursday approved the petition of PPL Electric Utilities Corp. to begin implementation of its long-term infrastructure improvement plan.

The Commission voted 5-0 to approve the plan, which was filed as part of Act 11 of 2012.  Chairman Robert F. Powelson and Commissioner Pamela A. Witmer issued a joint statement. Commissioner James H. Cawley also issued a statement.

The law required and provides for, among other things, utilities to file the plans as part of any action to establish a distribution system improvement charge (DSIC) to recover reasonable and prudent costs incurred to repair, improve or replace certain eligible distribution property that is part of a utility’s distribution system. 

PPL plans to accelerate infrastructure replacement over a period of five years.

PPL’s plan accelerates spending on the repair and replacement of aging facilities.   The company has also undertaken several initiatives to reduce the number of projected equipment failures including-- Enhanced Pole Inspection/Treatment Program; Increased Utilization of Infrared Inspections; Expanded Operational Reviews; and Distribution Automation Strategy.

As of January 1, 2013, public utilities may petition the Commission for approval to establish a DSIC. The petition must contain the following elements: 1) initial tariff; 2) testimony and exhibits to demonstrate that the DSIC will ensure the provision of adequate, efficient, safe, reliable and reasonable service; 3) long-term infrastructure plan; 4) certification that a base rate case has been filed within the past five years; and 5) any other information required by the Commission.  The petition must demonstrate that granting the petition and allowing the DSIC to be charged will accelerate the replacement of infrastructure.

PPL Electric provides electricity service to approximately 1.4 million customers in 29 counties in eastern and central Pennsylvania

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 service.” 

1/14/2013