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Pa. PUC Chair Wants All Utilities To Increase Awareness Of Utility-Supplied Time of Use Options For Default Service Customers
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The Pennsylvania PUC will direct Duquesne Light to propose additional time of use options for non-shopping customers taking default service from Duquesne Light
The PUC, adopting a motion from Chair Stephen DeFrank, will require Duquesne Light, within 60 days, to propose a time of use generation rate offering that shall be available to all residential and small
commercial default service customers with advanced meters
A written order has not yet been issued
Generally, under statute, default service providers with AMI are required to offer a TOU option to non-shopping customers, but the nature of how EDCs comply with this statutory provision has varied both over time and by utility
Duquesne Light's only TOU option for non-shopping mass market customers, both under its current default service plan and a newly approved plan (discussed below), is a whole-home pilot TOU rate only open to customers who own or lease an electric vehicle
Citing resource adequacy concerns as well as rising electric supply rates, DeFrank said that renewed focus on TOU rates is "warranted," noting the small participation in TOU rates both at Duquesne Light and at the other utilities, with several other EDCs having generally available (not EV-only) TOU generation rate options
"I believe it is important
for utilities to refocus their efforts on making TOU rates more accessible to customers," DeFrank said
DeFrank stressed that he was speaking to all EDCs, not only Duquesne Light
DeFrank desires for the state's EDCs to "increase awareness" of TOU rate options
As noted above, Duquesne Light's proposed default service plan for the term June 1, 2025 through May 31, 2029 (DSP X) does not contain a TOU SOS option other than the whole-home EV customer pilot
Since an uncontested settlement was reached concerning the terms of Duquesne Light's default service plan, DeFrank did not want to disturb such terms, and thus made a motion, which was adopted by the PUC, to direct Duquesne Light to propose, in a separate filing, additional TOU options for default service customers as described above
DeFrank hopes that the new TOU rate options for default service customers at Duquesne Light may be reviewed expeditiously, such that they are able to be approved for a June 1, 2025 effective date
In directing the supplemental TOU proposal, the PUC also adopted, without modification, the settlement governing Duquesne Light's default service for the period June 1, 2025 through May 31, 2029
Settlement & Default Service Plan
As previously reported, the unopposed settlement terminates the standard offer customer referral program (SOP) at Duquesne Light, effective May 31, 2025.
Service for participants in the SOP program as of May 31, 2025 will continue to be governed by the existing SOP rules, until the end of such participants' SOP term.
Regarding the procurement of default service supplies, Duquesne Light will cease the use of non-overlapping three-month contracts, with 100% of SOS load bid every 3 months, to serve medium C&I default service
Instead, Duquesne Light will create a portfolio under which half of medium C&I non-shopping load will be served under 1-year full requirements contracts, and half will be served under 6-month full requirements contracts.
The medium C&I 6-month contracts will include two separate pricing periods within the individual 6-month terms (wholesale suppliers will bid two prices, one price for the first 3 months, and another price for the second 3 months)
Supplies for Medium C&I SOS, under the products described above, will be procured every 6 months, during the same procurement which is held to obtain small customer default service (while the procurements will be held at the same time, the products for various SOS customer classes will remain distinct and separate)
For the 50% of medium C&I default service supplied under the 12-month contracts, one-half of such 12-month supplies (i.e. 25% of the needed total SOS supply) will be sought under each semi-annual procurement (thus the 12-month contracts will overlap)
For the 50% of medium C&I default service supplied under the 6-month contracts, there will be no overlap, and 100% of the supply served under 6-month contracts will be procured every 6 months
Default service rates for medium C&I customers will still be established for fixed terms of 3 months (due to the distinct 3-month pricing embedded in the 6-month contracts).
Under the settlement, there is no change to the default service product mix or pricing terms for Residential & Lighting; Small C&I; and hourly customers.
As such, default service for the Residential & Lighting class, and the Small C&I (under 25 kW) class, will be served under a mix of overlapping twelve-month (50% of the portfolio) and twenty four-month (50% of the portfolio) full requirements contracts.
Default service rates for the Residential & Lighting class, and the Small C&I class, will change every six months as is, generally, the current practice, barring any interim rate adjustments allowed under the current tariff (and for which authority will continue)
Under the settlement, when a customer enrolls in the customer assistance program (CAP), Duquesne Light, effective June 1, 2025, will automatically drop that customer to default service if the customer is currently taking service from a retail supplier
The adopted settlement also provides that retail suppliers will not be permitted to charge termination fees to customers who transfer to default service due to being enrolled in CAP
See more details on the settlement governing the default service plan, which was adopted without modification, in our prior story here
P-2024-3048592
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Pa. PUC Orders Large Utility To Expand Time Of Use Options For Default Service Customers
PUC Approves End Of Customer Referral Program
December 5, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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