More than 500,000 of Duquesne Light's (DL’s) residential customers are seeing a decrease in their overall electric bills, averaging 16 percent, thanks to the elimination of the Competitive Transition Charge (CTC).
DL is the first electric utility in Pennsylvania to eliminate the CTC from customer bills, which will result in a significant economic impact for the region. The CTC enabled electric companies to recover transition costs as the industry restructured into a competitive environment.
As a result of the CTC elimination, more than 500,000 of Duquesne Light's residential customers will see an average 16-percent reduction in their overall bills and save approximately $175 per year, regardless of whom is generating their electricity. The savings will pump more than $90 million of additional discretionary dollars into the economy annually. Total savings for all customers (residential, commercial and industrial) when the CTC is fully eliminated will be approximately $220 million annually.
In 1996, Gov. Tom Ridge signed into law the Electricity Generation Customer Choice and Competition Act, which cleared the way for customer choice and afforded Duquesne Light the opportunity to sell its electric generation plants. In April 2000, Duquesne Light successfully sold these plants and used a portion of the proceeds from this $1.7 billion sale to eliminate the CTC from customer bills.
As part of the deregulation process, Duquesne Light was able to accelerate its transition by passing these savings on to its customers seven years earlier than any other Pennsylvania electric utility.