Allegheny Power 2014 Annual Report Download - page 131

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116
en banc before the Third Circuit and, on October 15, 2014, the Third Circuit rejected that rehearing request. ME and PN filed a
Petition for Certiorari with the U.S. Supreme Court on February 12, 2015.
Pursuant to Pennsylvania's EE&C legislation (Act 129 of 2008), the PPUC was charged with reviewing the cost effectiveness of
energy efficiency and peak demand reduction programs. The PPUC found the energy efficiency programs to be cost effective and
directed all of the electric utilities in Pennsylvania to submit by November 15, 2012, a Phase II EE&C Plan that would be in effect
for the period June 1, 2013 through May 31, 2016. The PPUC deferred ruling on the need to create peak demand reduction targets
and did not include a peak demand reduction requirement in the Phase II plans. On March 14, 2013, the PPUC adopted a settlement
among the Pennsylvania Companies and interested parties and approved the Pennsylvania Companies' Phase II EE&C Plans for
the period 2013-2016. Total costs of these plans are expected to be approximately $234 million and recoverable through the
Pennsylvania Companies' reconcilable EE&C riders.
On August 4, 2014, the Pennsylvania Companies each filed tariffs with the PPUC proposing general rate increases associated with
their distribution operations. The filings request approval to increase operating revenues by approximately $151.9 million at ME,
$119.8 million at PN, $28.5 million at Penn, and $115.5 million at WP based upon fully projected future test years for the twelve
months ending April 30, 2016 at each of the Pennsylvania Companies. On February 3, 2015, each of the Pennsylvania Companies
filed a Joint Petition for Settlement seeking PPUC approval of the agreements reached in each proceeding which included, among
other things: 1) increases in current distribution revenues of $89.3 million for ME, $90.8 million for PN, $15.9 million for Penn and
$96.8 million for WP; 2) a Universal Services Charge Rider to be established for WP; 3) storm reserve accounts for future storm
recovery to be established for each of the Pennsylvania Companies; and 4) certain other operational and customer service-related
provisions. The sole issue reserved for briefing was with respect to the scope and pricing of the Companies' proposed LED offerings.
Orders on the proposed increases are expected in May 2015.