Government Relations professionals Stephen DeFrank, Senior Advisor, and Deborah Suder, Senior Principal, served as a driving force behind the enactment of HB 1782, which recently became Act 58 of 2018 in Pennsylvania. Steve, on behalf of clients PECO Energy Company and Pennsylvania American Water Company, and Deb on behalf of PECO, worked to defeat an amendment offered in the Senate that threatened to derail the legislation.
This legislation provides for alternative ratemaking for Pennsylvania utilities and will become a national model for alternative ratemaking policy in other states. Alternative ratemaking allows the Public Utility Commission to consider different ways of assessing utility distribution rates other than basing rates solely on usage. Such a change will allow utilities to implement new technologies and make necessary improvements to their distribution networks. Some examples of alternative ratemaking include decoupling, performance-based rates, formula rates and multi-year rates.