Pennsylvania Power Co. (PP) has asked the Pennsylvania Public Utilities Commission (PUC) to approve a 10-year "Rate Stability and Economic Development Plan," which includes a freeze on electric rates until May 1, 2006; enhanced customer assistance programs; rate incentives; and reduction of fixed costs and regulatory assets.
Rates would not be affected by future PP decisions on new generating capacity, removing or retiring generating facilities from service, or bulk-power purchases. PP also asked to increase its nuclear decommissioning funding without additional rate increases. PP also wants to eliminate its energy-cost rate adjustment, instead rolling certain fuel and purchased-power costs into base rates.
Because PP would absorb the effects of inflation over the 10-year period, the freeze is expected to produce nearly a 27-percent reduction in real electric prices when adjusted for present inflation forecasts.
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