The Public Utility Commission this week approved an agreement with Duquesne Light Co. to increase its electric rates by 16.2 percent and require the electric power distributor to contribute $1.5 million per year to the PA Energy Development Authority for renewable energy projects through 2010.

The bill for an average residential customer using 600 kWh of electricity will increase from $63.87 a month to $74.23 a month, according to the settlement. The company’s original proposal called for a distribution rate increase of about $143.7 million with average residential bills increasing to about $75.86 a month (18.8 percent).

Under the settlement, the company also will increase the number of customers who can participate in Customer Assistance Programs from about 23,000 to 27,000 and expand the size of its Low Income Usage Reduction Program by $350,000 to about $1.5 million per year, increasing the number of consumers served from 1,750 to 2,250.

The settlement was reached between the company and the formal complainants in the case. The 18 formal complainants included the state’s Office of Consumer Advocate, the state’s Office of Small Business Advocate, Citizens for Pennsylvania’s Future, Duquesne Industrial Intervenors, the Community Action Association of Pennsylvania, the International Brotherhood of Electric Workers Local 29, the Pennsylvania Large Energy Users Coalition and the Commission’s Office of Trial Staff.

Duquesne Light serves more than 580,000 customers in Allegheny and Beaver counties.

12/1/2006