pa-56-43-1577: Establishment of ratemaking working group

Summary

Public Meeting held September 10, 2026 Commissioners Present : Stephen M. DeFrank, Chairperson; Kimberly Barrow, Vice Chairperson; Ralph V. Yanora; John F. Coleman, Jr.; Kathryn L. Zerfuss Establishment of Ratemaking Working Group; M-2026-3064953 Order By the Commission : By this Opinion and Order, we shall create a Ratemaking Working Group (RWG) to undertake a comprehensive review of utility return-on-equity (ROE) litigation, metrics in rate case settlements, and the process for establishing the ROE utilized in the Distribution System Improvement Charge (DSIC), as well as other areas of utility ratemaking and on other areas or issues deemed necessary. The RWG will author a final initial report on the topics listed above and shall author further reports on related topics at the direction of the Commission. Background At the public meeting held September 10, 2026, the Commission approved a motion creating a Ratemaking Working Group. The Commission, as economic regulator of the Commonwealth's investor owned electric, water, wastewater, and natural gas distribution utilities, has a duty to ensure that all rates are just and reasonable. This duty comes with the responsibility to continuously review our existing regulatory processes and procedures to keep them modern, efficient, and effective in the face of ever dynamic macroeconomic and utility sector specific evolution. The utility industry has experienced continued turbulence in recent years, driven by high inflation, trade...

The agency’s own summary, as published.