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Large Pennsylvania Utility Again Seeks Mid-Course Change To Fixed Default Service Rates, Increase Now 16% For Residential Customers

August 27, 2024

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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Duquesne Light has again sought approval at the Pennsylvania PUC to increase, in the middle of the current six-month fixed price period which began on June 1, 2024, the default service supply charges for residential and small commercial customers

As previously reported, Duquesne Light has cited under-collections under the capacity proxy price mechanism used in default service, due to much higher actual capacity prices from PJM's recent BRA for 2025-2026, as prompting the need for the interim adjustment to the fixed default service supply charge rates (see background here)

The PUC on August 23 rejected Duquesne Light's original filing to implement such a mid-course SOS rate adjustment, with the PUC finding that Duquesne Light's filing was inconsistent with its tariff

In such prior application, Duquesne Light had sought an effective date (September 1) that was less than 30 days after the filing of the interim rate changes (with Duquesne Light seeking a waiver of the 30-day notice requirement)

Duquesne Light on August 26 filed a new tariff, with new interim updates to the SOS supply charges, with a sought effective date of September 25, 2024

Duquesne Light stated that its tariff allows the utility to seek interim adjustment to the default service supply rate if a "material" undercollection would otherwise occur, to become effective 30 days from the date of filing, unless otherwise ordered by the PUC

Duquesne Light's latest filing for a mid-course adjustment to the fixed default service rates includes revised rates that are slightly higher, presumably due to the passage of time. the later effective date, and the shorter period remaining in the current SOS rate term

Duquesne Light is specifically seeking increases to the default service supply rate, or supply charge, which reflects generation supply only. The supply charge is the largest component of the Prices to Compare, which also include transmission and the state tax adjustment surcharge. Rates below are for the standard supply charge for the relevant class, and do not reflect the optional EV TOU rate

For residential customers, Duquesne Light seeks to increase the standard supply charge by about 16%, to 9.4438 cents per kWh, from the current 8.1618 cents per kWh, to be in effect from September 25, 2024 through November 30, 2024 (the previously filed interim rate was 9.1088 cents)

For small commercial and industrial customers under 25 kW (GS/GM, GMH, UMS), Duquesne Light seeks to increase the standard supply charge by about 10%, to 8.9898 cents per kWh, from the current 8.1618 cents per kWh, to be in effect from September 25, 2024 through November 30, 2024 (the previously filed interim rate was 8.7898 cents)

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