Peco hears criticism for its proposed rate increases

Forty people showed up Tuesday at a hearing on Peco Energy Co.'s proposed 6 percent rate increase for electricity.

Those attending the two-hour hearing at the Free Library of Philadelphia's central branch ranged from an AARP volunteer to individual customers who said they would be harmed by the increases. Thirteen of them testified.

"I am afraid of being unable to pay my bills and losing my house," said Tracey Blackman of North Philadelphia, who said her family's electrical service was cut off for lack of payment in November 2014.

She said the increase would force her to cut back on food and educational materials for her children. "My youngest son has asthma and needs to charge his nebulizer," she said.

After Blackman spoke, a Peco representative met with her to discuss her situation.

The hearing was the second of five public meetings scheduled this month to gather input about the proposed rate increases. Peco in March filed a $190 million increase request, its first in five years, which it says would raise a residential customer's bill 6 percent.

Administrative Law Judge Angela T. Jones, who is conducting the hearings, will make a recommendation to the Pennsylvania Public Utility Commission later this year, though rate-increase requests are often settled after negotiations. Any increase granted by the PUC would take effect in January.

The Philadelphia utility, which serves 1.6 million customers in the city and surrounding counties, characterized the rate increase and a companion filing outlining its five-year infrastructure-improvement plan as vital customer investments in the power system.

Valda Branison, who spoke on behalf of AARP Inc., said increases in rates would hurt "lower-usage and lower-income Peco customers the most."

She said she was skeptical that Peco's rate increase was needed for infrastructure improvements. "Peco shareholders should not enjoy an investment windfall that is built on the backs of its lower- and fixed-income customers," Branison said.

Other hearings will be held at 7 p.m. Wednesday, at Worcester Township Community Hall, 1031 Valley Forge Rd, Norristown, and at 7 p.m. June 15 at Water's Edge Banquet Room, 500 North Lane, Ridley Park.