Rate Increase Info Return to Citizens' Electric Company

Citizens' Electric Company of Lewisburg, PA Files for Rate Increase

            On April 30, 2007, Citizens' Electric Company of Lewisburg, PA filed a distribution rate increase proposal with the Pennsylvania Public Utility Commission.  The amount of the proposed increase is $898,363 per year or about 7.4% of the Company's current total annual revenue.  The proposed effective date for the increase is July 29, 2007.

            In Pennsylvania, electric service is "unbundled" into three components:
                        "Generation" or "Purchased Power" is the production of electricity from fuels such as coal, oil and gas.
                        "Transmission" is the movement of electricity from where it is generated to the point of distribution.
                        "Distribution" is the delivery of electricity from transmission lines to home and businesses on the local poles and wires.

         Customers can choose the company that generates their electricity.  Citizens' is required to provide each customer in its service territory with distribution service and to obtain generation and transmission service for its customers that do not find a competitive supplier.  The quality, reliability and maintenance of your electric service has not changed.

            If the Company's entire request is approved by the PUC, the total bill for a residential customer using 1,200 kWh per month would increase by $5.31 per month, from $84.34 to $89.65 or by 6.3%.  The total bill for commercial class customers purchasing electricity from Citizens' will vary depending on billing demand.  For example, the bill for a commercial customer with a 5 kW demand using approximately 2,190 kWh per month would increase by $33.55 per month, from $157.41 to $190.96.   The bill for a commercial customer with a billing demand of 10 kW using approximately 2,920 kWh per month would increase by $17.95 per month, from $220.06 to $238.01.  Finally, the bill for a commercial customer with a billing demand of 25 kW using approximately 9,125 kWh per month would increase by $24.75 per month, from $656.41 to $681.16.   Bills for other types of customers, including customers purchasing street and area lighting service, for which the Company proposes changes to the service terms and conditions, will also increase.

The Company also proposes to make various changes to its Tariff rules and regulations for service.  This includes the increase of late payment fees from 1.15% to 1.50%.  In addition, the Company is implementing changes to the rate design for some customer classes that will impact customers' total monthly charges.  Citizens' is also proposing certain changes to its private and municipal street lighting services, including the unbundling of the distribution and generation charges for these service schedules.  Citizens' also is changing the lighting options available for new installations to reflect current technology.  The specific changes are included in the materials available from the Company.

            Over the past 17 years, Citizens' has experienced significant increases in operating costs.  The Company has also made substantial investments in system utility plant additions to ensure an ample supply of safe and reliable distribution service.  The proposed rates are necessary to fund increases in material, labor and other costs that have occurred since Citizens' last base rate case in 1990.

            Any questions concerning the increase or its effect on customers' bills can be directed to the Company at 570-524-2231.