A settlement filed with the Public Utility Commission in a merger case involving Exelon (PECO Energy in Pennsylvania) and New Jersey’s Public Service Enterprise Group Inc. resulted in energy savings for PECO customers and a boost in funding for renewable sources of energy and energy conservation programs.

The Rendell Administration, Citizens for Pennsylvania’s Future and other groups intervened in the proposed merger between Exelon and PSEG.

Renewable energy and energy conservation will get a $19.2 million boost from the settlement, with PECO Energy paying $12 million to the Pennsylvania Energy Development Authority and $7.2 million to the Sustainable Development Fund. An additional $8 million will be provided to promote energy-related economic development projects benefiting Philadelphia-area residents.

The settlement will provide approximately $220 million in rate relief to PECO’s customers through direct rate cuts and a rate cap extension. Customers in the PECO service territory will receive $120 million in total rate cuts over four years, beginning one month after the merger is finalized. PECO also will cap transmission and distribution rates through the end of 2010.

“We have been focused on protecting ratepayers, securing rate relief and maintaining PECO jobs,” Gov. Rendell said. “Our vigorous effort in this process helped to ensure a stable energy market that manufacturers need to succeed and expand in a competitive marketplace, and protection for consumers, especially our most vulnerable residents, from soaring electricity prices.”

“This agreement is an out-of-the-park, bases-loaded home run for Pennsylvania’s environment and economy,” said John Hanger, President and CEO of PennFuture, and former member of the PUC. “We gained funding for clean, renewable energy, and energy conservation. The agreement puts consumer protections in place for the Pennsylvania customers affected by this merger. It will save lives by increasing assistance to low income customers by $20 million. And most of all, it will cut electricity rates by a whopping $120 million to homes and small and large businesses.”

The settlement must be approved by the Public Utility Commission.

NewsClip: PECP Offers $120 Million in Rate Relief

9/16/2005