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Pa. PUC Now Says, In Order, That It's "Important" To Make Time Of Use Rates, "As Widely Available As Possible" (Direction For New Default Service TOU Option)
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In memorializing a prior vote from the bench directing Duquesne Light to propose a new Time of Use generation rate for default service customers (with other utilities nudged to also increase awareness of TOU offerings), the PUC's written order provides a more expansive opinion from the PUC on TOU rates, versus the outlook previewed in the December vote
As previously reported, in December, the PUC adopted a motion from Chair Stephen DeFrank requiring Duquesne Light, within 60 days, to propose a time of use generation rate option which shall be available to all residential and small commercial default service customers with advanced meters
Duquesne Light's only TOU option for non-shopping mass market customers, both under its current default service plan and a newly approved plan, is a whole-home pilot TOU rate which is only open to customers who own or lease an electric vehicle
Citing resource adequacy concerns as well as rising electric supply rates, DeFrank in December had 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
Notably, DeFrank had stated, "I believe it is important for utilities to refocus their efforts on making TOU rates more accessible to customers." [emphasis added]
In rendering DeFrank's motion into an order, the PUC has adopted more expansive language concerning the availability of TOU rates
While DeFrank had stated that the utilities should make TOU rates "more accessible", the written order does not include this language, but rather sets forth the PUC's position thusly: "It is therefore important to make TOU rates as widely available as possible.
This language notably differs from DeFrank's motion in two respects
First, the order reflects the PUC's desire that TOU rates become "as widely available as possible" rather than simply more accessible (the written order's discussion of TOU rates is not limited to either distribution or generation)
Second, while DeFrank's statement specifically concerned utilities making TOU rates more accessible, the written order's quoted statement concerning the desired wide availability of TOU rates is not, in itself, limited to utility TOU rates
Consistent with DeFrank's motion and the case at hand (which was limited to Duquesne Light), the only specific direction in the written order is for Duquesne Light to propose a new optional TOU rate for default service customers, as noted above
However, the PUC's written order, reflecting DeFrank's motion, still encourages the other EDCs to boost customer awareness of TOU offerings (again, note below that the PUC's language does not specifically state "utility" or "their" TOU offerings)
"Outside the confines of this case, we would also like to see the other electric utilities in Pennsylvania refocus their efforts to increase
awareness of time-of-use rates and ensure that customers understand them and are able to make informed decisions about whether those rates may benefit them," the PUC's written order states
Docket P-2024-3048592
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January 14, 2025
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Reporting by Paul Ring • ring@energychoicematters.com
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