Distribution System Improvement Charge (DSIC)

Implementation Order to Address All Issues Pertaining to The Distribution System Improvement Charge Calculations Required in The Pennsylvania Supreme Court's Decision in McCloskey v. Pa. PUC (Docket No. M-2012-2293611)

The PUC ask for Comments regarding whether a refund/recoupment should be required, that timing of such refund, the amortization period for that refund, the impact of a refund on utilities, and whether interest should be applied.  By way of background, this docket was originally initiated by the PUC to for the purpose of implementing Act 11, which authorized the creation of both the future test year and the DSIC.  As such, all prior Comments in the docket were related generally to those issues (the last Comments having been filed in 2018).  As such, no Comments to this point address the discrete issue presently before the Commission regarding the revised DSIC model tariff and utility requirements as they pertain to over-recovered costs.  Based on this review, IECPA submitted Comments on July 22, 2022, addressing the need for refunds and the mechanism for doing so.

On October 27, 2022 the PA PUC issued the Order.  Regarding refunds, the Commission’s only real statement in the Order is as follows: “Based on the comments received, issues related to refunds that may be required due to the McCloskey decision are beyond the scope of this implementation proceeding and cannot be made on the record before the Commission in this proceeding.” Otherwise, the Order does not tangibly address IECPA’s Comments.  The Commission did not provide direction as to when and how the determination of potential refunds will be addressed.  Presumably, parties will have to raise this issue in the context of the reconciliation processes contemplated by the model tariff and approved by the PUC.