PECO Gets $1.1 Billion

Fortnightly Magazine - July 15 1997
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Recharge the Economy with Renewable Energy Tax Credits

At a proceeding marred by hecklers and the arrest of five protesters, the Pennsylvania Public Utility Commission finalized a preliminary decision awarding PECO Energy Co. $1.1 billion of its requested $3.8 billion in stranded cost recovery (Docket R-00973877).

On May 8, by a 4-1 vote, the PUC issued a nonbinding order to allow PECO to refinance the $1.1 billion in stranded costs at lower interest rates through issuance of asset securitization bonds to be paid over 10 years.

The $1.1 billion approved for recovery consists of: $607.3 million in stranded generation costs; $372.9 million in regulatory assets; $96.1 million in deferred fuel costs; and $22 million in transaction costs.

The protesters likened stranded-cost recovery to "baloney," and reportedly disrupted the proceedings with an attempt to deliver a slice of luncheon meat to the commission.

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