The Pennsylvania Public Utility Commission this week disapproved the 2010 rate cap transition plans of Met-Ed and Penelec and eliminated funding provided in a customer surcharge to the Sustainable Energy Development Fund serving their territories.

The Commission voted 4-0 to allow Met-Ed to increase its revenues by about $58.7 million (5.1 percent) and Penelec by about $50.2 million (4.6 percent). Met-Ed had requested an increase of about $216 million (19 percent) and Penelec for an increase of $157 million (15 percent).

The PUC eliminated funding to the Met-Ed/Penelec Sustainable Energy Development Fund because it said the adoption of the Alternative Energy Portfolio Standards Act in 2005 required utilities to purchase electric power from renewable sources. The surcharge on customers for the Fund was therefore duplicative.

Vice Chairman James Cawley issued a statement.disagreeing with the majority saying funding should be restored to the Sustainable Energy Fund because it does not add significantly to customer rates and the Fund has established a responsible record of making investments in alternative energy projects.

The Commission denied the Met-Ed and Penelec Rate Transition Plans that included an increase in generation costs. The Commission did not make any adjustments to rates to reflect merger savings based on FirstEnergy testimony that they provided $700 million of generation support provided to Met-Ed and Penelec.

Met-Ed serves about 534,966 customers in eastern and southeastern Pennsylvania.

Penelec serves about 587,975 customers in western and southwestern Pennsylvania.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit www.puc.state.pa.us.

Visit the Berks County Community Education Foundation website and the Community Foundation for the Alleghenies for information on the Met-Ed/Penelec Sustainable Energy Fund programs.

1/12/2007