Dive Brief:
- Pennsylvania regulators voted unanimously to approve a pilot time-of-use (TOU) program proposed by PPL Electric Utilities, replacing the current TOU rates.
- Under the new tariff, which will go into effect in December, PPL will provide the time-based rate option but will rely on the retail market and participating electric generation suppliers (EGS) for actual service.
- The program is voluntary and open to all residential, small commercial and industrial customers, except those in PPL’s low-income customer assistance program.
Dive Insight:
PPL filed a petition in 2012 for a default service program that included a new TOU program, but the Public Utilities Commission (PUC) directed the utility to collaborate with other stakeholders to resolve any deployment issues and then file a new plan in August 2013.
Regulators on September 11 voted 5-0 to approve the plan, under which PPL will provide rate options offered by participating generators that vary with time of use, but not as frequently as each hour. Rate options must also include off-peak and on-peak periods; rates during off-peak periods will be lower than on-peak rates and off-peak hours cannot include the hours of 2:00 to 6:00 p.m. on weekdays in June, July and August.
According to the commission, suppliers who wish to participate in the program must first qualify by being licensed by the commission with authority to provide service to residential and/or small commercial and industrial customers in PPL’s service territory. Participating EGSs must provide a TOU rate option to these customers from the initiation of the program until May 31, 2015, which is the end of PPL’s current default service plan.
EGSs must also create and maintain a webpage that will be cross-referenced by PPL on its TOU webpage, regulators said, which provides details about the available rate options offered for the current quarter.
