Pa. PUC Approves PPL TOU Tariff, Directs PPL to Include Future Programs as Part of Default Service Filing

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December 3, 2010

The Pennsylvania PUC approved PPL Electric's optional Time of Use (TOU) generation tariff as filed for the period January 1, 2011 through May 31, 2013.

Details of the program, including eligible rate classes and pricing structure, may be found in our 9/28 story.

While the PUC approved PPL's petition to supply TOU customers using a portion of its spot market supplies purchased for fixed price default service customers, the Commission noted the inherent correlations in the structure and administration of a TOU program with other default service programs.  

"Therefore, the Commission directs PPL to include its future TOU program within the context of its next default service filing.  The Commission believes it would be prudent to analyze the advantages and disadvantages of a 'spot plus' product in future default service solicitation.  This type of product could entail a fixed percentage of the fixed-price load plus the load for all TOU customers.  A format like this may eliminate any relationship between fixed-price rates and TOU rate participation levels," the PUC said in its order.

Commissioner Robert Powelson expanded upon this question in a statement, writing that, "PPL's goal should be to have a separate TOU category in their next default service plan."

"If there is adequate customer enrollment, wholesale default service providers could bid on that customer group separately from non-TOU customers.  This is the only way to give truly accurate price signals to TOU customers and provide 'smart' rates for smart meters, a goal that is consistent with Act 129," Powelson said.

Vice Chairman Tyrone Christy and Commissioner Wayne Gardner supported Powelson's statement.

The PUC approved PPL's petition to recover TOU implementation costs from default service customers only.  Christy dissented from this finding, arguing that it is inconsistent with the treatment of choice education costs which are recovered from all customers.

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