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Pa. PUC Approves Language Which Will Change Default Service Class Designation For Some Customers

January 15, 2026

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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Pennsylvania PUC approved language at Citizens’ Electric Company of Lewisburg which will change how the demand of customer-generators is measured, which may impact the default service class (fixed price vs hourly) into which a customer-generator is assigned

The PUC's decision is similar to action taken at several other utilities recently, though, in this case, the change in being accomplished through a tariff change in a distribution rate case, and not a default service plan

At a high level, customer-generators' demand may now (as further detailed below) be measured on a gross basis, not on a net basis. This may result in a customer-generator having a larger value for their demand, and such larger value may push the customer-generator above the 400 kW threshold for hourly-priced default service (and making such customer-generator ineligible for fixed price default service)

Specifically, the PUC directed as follows:

Citizens’ shall define "Billing Demand" in tariff Rule 26 as:

Billing Demand shall reflect the Customer’s use of the distribution system, which will be the greater of Gross Generator Rating (kW(AC)) as stated in the generator interconnection application or the maximum demand of the customer during any 15-minute period during the current month.

For distribution rate classes GLP-1 and GLP-3, the Billing Demand sections of each shall be revised to state:

"Billing Demand" is defined in Rule 26(a), but not less than 50% of the highest Billing Demand during the preceding eleven months.

An ALJ in a recommended decision had said that this change would ensure that customer-generators are grouped with similar customers for purposes of default service pricing. The Office of Consumer Advocate had stated in the case that grouping large customer-generators with other large customers, in hourly priced default service, can improve efficiency in procuring power for small customer default service

The PUC said in its order that the new definition for Billing Demand offers a solution to the subsidization issue posed by large customer-generators who, absent the definition change, would otherwise be eligible for small customer default service, due to the use of net demand

The PUC today adopted a similar change for determining billing demand at Wellsboro Electric Company, in a separate order

R-2025-3054394 (Citizens), R-2025-3054392 (Wellsboro)

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