|
|
|
|
|
Pennsylvania PUC DENIES Interim Increase In Default Service Rates Sought By Large Utility
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
The Pennsylvania PUC has denied an application from Duquesne Light to increase, in the middle of the current six-month fixed price period which began on June 1, 2024, the default service supply charges for residential and small commercial customers
As discussed further below, Duquesne Light had sought to change the mass market default supply charges for the remaining three months of the six-month fixed price supply charge period, citing under-collections under the capacity proxy price mechanism due to much higher actual capacity prices from PJM's recent BRA for 2025-2026
In a Secretarial letter, the PUC found that Duquesne Light's proposed changes to the supply charges, "are not consistent with the tariff," and ruled that the changes are not permitted to become effective
The sought mid-course rate adjustment would have increased the standard residential default service supply rate (the supply charge, which reflects generation supply only and is the largest component of the price to compare) by 12%, from 8.1229 cents per kWh to 9.1088 cents per kWh, to be in effect from September 1, 2024 through November 30, 2024
For small commercial and industrial customers under 25 kW (GS/GM, GMH, UMS), Duquesne Light had sought to increase the standard supply charge by about 8%, to 8.7898 cents per kWh from 8.1618 cents per kWh, to be in effect from September 1, 2024 through November 30, 2024
Duquesne Light had 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
M-2024-3050756
ADVERTISEMENT ADVERTISEMENT Copyright 2024 EnergyChoiceMatters.com. Unauthorized copying, retransmission, or republication
prohibited. You are not permitted to copy any work or text of EnergyChoiceMatters.com without the separate and express written consent of EnergyChoiceMatters.com
August 23, 2024
Email This Story
Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Director of Policy and Research, Retail Energy
• NEW! -- Director, Load Forecasting
-- Retail Supplier
• NEW! -- Wholesale Markets Analyst -- Retail Supplier
• NEW! -- Origination Analyst
-- Retail Supplier
• NEW! -- Settlements Analyst
-- Retail Supplier
• NEW! -- Billing Supervisor
|
|
|
|
|