PUC approves lower rate increase for Duquesne Light, utility to refund $24 million to customers

State utility regulators have approved a rate increase for Duquesne Light that is about half of what the company had requested, and requires it to return federal tax savings to customers.

The Public Utility Commission voted Thursday to approve a $40.5 million net revenue increase for Duquesne Light, which had initially asked for an $81.6 million increase.

Under the settlement, the average monthly electric bill for a residential customer using 600 kilowatt-hours per month will increase from $98.15 to $102.51, a 4.44 percent increase, effective Dec. 29.

The settlement also requires Duquesne Light to refund $24 million in savings that came from from the federal Tax Cuts and Jobs Act of 2017.

Residential customers will get a one-time bill credit during the January 2019 billing cycle, based on their distribution charges. Refunds for larger commercial and industrial customers will be spread over a two-month period.

The average residential customer bill credit will be $25.61, the PUC said.

Duquesne Light provides electric distribution service to nearly 597,000 residential and business customers in Allegheny and Beaver counties.

An electric vehicle pilot program is included in the settlement to encourage deployment of additional charging stations, registration incentives, consumer education and development of fast charging stations to be used by Duquesne Light and the Port Authority of Allegheny County for electric bus evaluation.

Brian Rittmeyer is a Tribune-Review staff writer. You can contact Brian at 724-226-4701, brittmeyer@tribweb.com or via Twitter @BCRittmeyer.