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Large Pennsylvania Utility Seeks Mid-Course 12% Increase In Default Service Supply Rate During Current Fixed Rate Period
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Duquesne Light is seeking approval from the Pennsylvania PUC for a mid-course increase in its fixed default service supply rates for residential and small commercial customers
Duquesne Light said that the increase, which is occurring in the middle of the standard six-month fixed price period for mass market default service customers, is needed due to under-collections which would occur under the current prices for the fixed SOS rates.
The under-collections, Duquesne Light said, result from the use of a lower capacity proxy price in the underlying default service rates, and the higher capacity price resulting from PJM's recent base residual auction for the 2025-2026 delivery year
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 (RS, RH, and RA) customers, Duquesne Light seeks to increase the supply charge to 9.1088 cents per kWh for the interim period of September 1, 2024 through November 30, 2024, which is 12% higher than the current rate of 8.1229 cents per kWh, which had been previously established as the supply charge that was to be in effect for a full six months starting June 1, 2024
For small commercial and industrial customers under 25 kW (GS/GM, GMH, UMS), Duquesne Light seeks to increase the supply charge to 8.7898 cents per kWh for the interim period of September 1, 2024 through November 30, 2024, which is nearly 8% higher than the current rate of 8.1618 cents per kWh, which had been previously established as the supply charge that was to be in effect for a full six months starting June 1, 2024
The interim default service rate adjustments remain subject to PUC approval. Duquesne Light sought a waiver of the 30-day notice requirement for the adjustment
Duquesne Light said that, at the current supply rates, the PJM capacity price that resulted from the recent 2025/2026 BRA results in an aggregate under-collection of about $7 million, under two prior default service procurements, with contract terms of December 2023 through November 2025, and June 2024 through May 2026, which had relied on a capacity proxy price. The $7 million reflects under-collections from both prior default service pricing periods, and the current period
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August 16, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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