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Pennsylvania Approves Program to Rely on Retail Suppliers to Meet PPL Time of Use Rate Mandate
The Pennsylvania PUC approved a settlement under which PPL Electric Utilities will meet its statutory obligation to offer a Time of Use rate to customers by relying on electric generation suppliers under an open process.
Under the settlement, which was adopted without modification, PPL will cease offering utility-offered Time of Use generation rates.
Instead, it will direct customers desiring a TOU option to electric generation suppliers signing up to participate in the PPL TOU program.
In one of the contested issues in the proceeding, the PUC denied a proposal from a customer that the TOU program require participating EGSs to offer net-metering service to customer-generators who take TOU service from the EGS.
"We agree with PPL and FES that EGSs who participate in the Program should be permitted the flexibility to design TOU rate options that they believe will be attractive to customers in the competitive marketplace, which would include the freedom to decide whether or not they wish to offer net-metering to customer-generators who take TOU service from them," the PUC said.
Under the adopted TOU program, which will run on a pilot basis through May 31, 2015, retail suppliers will generally define the terms of the TOU generation service offered to participating customers, except for several required terms.
First, the term of a TOU plan offered by a participating EGS shall be no less than 3 months, with the term coinciding with quarterly changes in PPL Electric's price-to-compare.
Second, retail suppliers will generally have discretion to define the on-peak and off-peak period, except that an EGS's off-peak/discounted pricing hours cannot include 2 p.m. to 6 p.m., Monday through Friday, during the summer (i.e., June, July, and August), excluding PJM holidays.
The TOU rate options offered by the participating EGSs shall consist of a rate that varies with time of use, but not as frequently as each hour, and shall include off-peak and on-peak periods, with rates during off-peak periods being lower than rates during on-peak periods.
A participating EGS also may not charge an early termination penalty or fee to any customer that leaves the TOU rate option offered by the EGS as part of the PPL TOU program.
EGSs must use "bill ready" utility consolidated billing to participate in the program.
PPL will maintain a website listing EGSs participating in the TOU program and will direct customers to such website. PPL will not promote specific EGS offers. EGSs are otherwise responsible for publicizing and marketing their participation in the TOU program and the TOU rate options provided thereunder.
Customers on PPL's current utility-offered TOU option will be notified that the utility-offered TOU program is terminating, and will be informed of the EGS programs. Current PPL TOU customers will be placed on default service if they do not affirmatively select an EGS for TOU service.
All PPL residential and small C&I customers, except for customers in the low-income customer assistance program (CAP), will be eligible to participate in the TOU program for the term of the program.
Docket P-2013-2389572
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September 12, 2014
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Reporting by Karen Abbott • kabbott@energychoicematters.com
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