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Pa. regulators approve stipulated $6.2M electric rate increase for UGI Utilities from SNL Daily Gas Report Pa. regulators approve stipulated $6.2M electric rate increase for UGI UtilitiesByline: Lillian Federico The Pennsylvania Public Utility Commission approved a settlement in UGI Corp. subsidiary UGI Utilities Inc.'s electric rate case, Docket No. R-2021-3023618, authorizing the company a $6.2 million rate increase. The administrative law judge conducting the case recommended that the PUC approve the agreement without modification. At its Oct. 28 open meeting, the PUC voted unanimously to approve the judge's proposed order. While the settlement is silent regarding most traditional rate case parameters, UGI is to use the equity returns approved by the PUC in the context of its quarterly reviews of the jurisdictional utilities' earnings to calculate revenue requirement adjustments under the distribution system improvement charge. The PUC's most recent review was completed Oct. 8, when the PUC approved a 9.45% ROE for electric utilities. The company will not be eligible to file for an adjustment under the charge until its net plant investment exceeds $152.2 million. The 9.45% ROE is marginally above the 9.43% average ROE authorized to electric utilities nationwide in all electric rate cases decided during the first half of 2021 and the 9.36% average for cases decided during the 12 months ended June 30, as calculated by Regulatory Research Associates, a group within S&P Global Market Intelligence. For a discussion of historical trends in rate-of-return authorizations and other ratemaking parameters for energy utilities, refer to the most recent RRA Major Rate Case Decisions Quarterly Update. The approved agreement also calls for the company to implement, with certain modifications; an electric battery storage proposal; and an electric vehicle make-ready charging infrastructure tariff. The battery storage proposal is to be implemented on a pilot basis, and the parties agreed that approval of the proposal does not serve as precedent for any future battery storage proposal put forth by UGI or any other utility in the state. In addition, UGI will be precluded from using the battery storage system to participate in the PJM Interconnection frequency regulation market. With regard to the EV proposal, for all public access facilities, the company is to provide all required investment and is to design and install the required facilities as part of a pilot program that is to conclude Sept. 30, 2026. Facilities eligible for the program are to include between one and four DC Fast Charge stations of 50 kW or greater or at least four Level 2 charging stations that are "compatible with the company's distribution system and are located within 400 feet of a company 3-phase primary distribution circuit line, or in another location where the company, in its sole discretion, anticipates that adequate public availability and access is being provided." Make-ready infrastructure will not include any behind-the-meter costs associated with the installation of EV charging stations. The approved settlement also provides for an increase in the residential fixed monthly customer charge to $9.50 from $8.74 and an increase in the monthly charge for small general service customers to $13.00 from $9.83. The company had initially proposed new fixed monthly charges of $13.00 and $14.00, respectively. The approved revenue requirement reflects the amortization of UGI's COVID-19-related deferrals over a three-year period. Regulatory Research Associates is a group within S&P Global Market Intelligence. |
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