ALJ Refuses PECO's Stranded Cost Recovery

Fortnightly Magazine - June 1 1997
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Pennsylvania Administrative Law Judge Louis Cocheres has recommended that the Public Utility Commission should deny a request by PECO Energy Co. to recover stranded costs from ratepayers through a surcharge over 10 years.

Pennsylvania State Sen. Vincent Fumo (D) had intervened in the proceeding against PECO's request. Fumo claims the ruling is significant because it points out that customers should not receive the financial benefits of deregulation if PECO is allowed to impose the surcharge.

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"Although the final decision is still in the hands of the commission ... it's going to be difficult for the commissioners to go against such a decisive finding by their own judge," Fumo said.

Fumo also has challenged in state court the constitutionality of the state's electric restructuring law because of the manner in which it was passed.


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