The settlement covers only the delivery rates of gas and electricity, which account for about a third of a customer's total bill. It does not include the actual cost of the gas and electricity.
But Peco believes that its purchasing practices over the past year eliminate any need for further increase, spokeswoman Cathy Engel said. The final commodity cost won't be known until later this fall.
"That's a total-impact number," Engel said of the price increase. "There are two parts to your bill, but the total in all will be less than 10 percent."
Originally, Peco forecast much higher rates because of the rate caps that expire on Jan. 1, 2011. The rates are based on market pricing.
But a number of factors - including current wholesale market costs, how Peco structured its electricity purchases thus far, and the lengths of its contracts - have allowed the company to get lower prices than expected, Engel said.
The settlement is between Peco and interested parties like consumer-advocate groups. It will next be reviewed by two administrative law judges, who will make a recommendation to the Pennsylvania Public Utility Commission. The Commission will then decide on the rates that become effective Jan 1, 2011.
