HARRISBURG, Pa. (CBS) — The Pennsylvania Public Utility Commission has approved a settlement for a lower rate increase than requested by Peco, the electric utility.

The PUC’s Jennifer Kocher says Peco has been granted a increase in its “base distribution” rate for electricity and natural gas.

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“That’s the money that you pay to get the electricity and gas to your door,” she explains.  “It’s for the lines or the pipe system.”

Kocher says the electricity rate increase is not related to the lifting of rate caps scheduled to take place in the new year.

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So how much more should customers expect to pay?

“For a total bill, it’s going to be for the average electrical customer about five dollars a month,” Kocher said, “and for the average natural gas customer it will be about four dollars a month.”

The new rates kick in on January 1st.

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Reported by Paul Kurtz, KYW Newsradio 1060.