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ALJ Issues Recommend Decision in Utility Settlement on Remand
On July 7, 2026 an administrative law judge (ALJ) issued a recommended decision on remand in PGW rate case.
The ALJ’s recommended decision regarding the terms of this settlement include: (1) in any PGW base rate case initiated within 5 years of the Pennsylvania’s (PUC’s) final order on remand in this proceeding, PGW will submit a cost of service study (COSS) that allocates distribution system peak demand costs for Rate IT using a 50/50 weighting of actual historical peak demand responsibility and design day responsibility. No rate changes will result from this remand proceeding. All parties reserve their rights to challenge or defend other aspects of cost allocation and rate design for Rate IT; (2) in any such base rate case filed within this 5-year period, the parties agree not to challenge PGW’s allocation of peak demand costs in the COSS as described above, unless directed otherwise by the PAPUC; and (3) for any PGW base rate case initiated more than 5 years after the PAPUC’s final order on remand, PGW will not be required to use the above allocation methodology in its COSS.
