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PECO Proposes To Offer Discount Battery Storage Leases To Customers (Systems Owned By PECO)
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PECO in a newly filed electric rate case at the Pennsylvania PUC has proposed under a pilot to offer to residential customers discounted leases of battery energy storage systems (BESS)
PECO’s proposed BESS Leasing Pilot would be open to 200 residential customers who previously installed rooftop solar systems without an energy storage component
Under the proposal, eligible customers may lease a BESS owned
by PECO for 10 years for a one-time upfront payment equal to 70% of the installed
cost of the battery
A witness for PECO stated, "The
Company [PECO] will monitor charge and discharge data from the BESS and will use the BESS
to reduce demand during peak periods. Participating customers will be able to use the
BESS to reduce their electric bills by shifting energy use to off-peak hours to take advantage of time-of-use ('TOU') rates and to discharge stored energy as backup power during outages."
PECO said that it would "encourage" BESS pilot participants to enroll in a Time of Use (TOU) rate either from
PECO (including a TOU default service rate) or from a retail electric supplier
PECO noted that PECO does not have visibility into retail electric generation supplier (EGS) portfolios or the products and services
EGSs offer to residential customers, including time-varying rates.
However, PECO said that, as of March 30, 2026, no EGS is currently offering TOU rates on PA Power Switch in PECO’s service area.
PECO said that only
about 5% of PECO’s residential solar customers have chosen to install a BESS, and
only a small subset of those customers are enrolled in PECO's TOU generation
rates
Concerning the use of the BESS in the pilot for peak events, PECO said, "PECO does not intend to set a firm threshold or frequency for mandatory peak events.
The Company intends to assess the efficacy of voluntary participation in TOU rates
and daily load shifting for mitigation of super peak events, e.g., hours with a high
potential to become PJM 5 Critical Peak ('5CP') hours for that year, and use that
information to inform PECO’s approach to mandatory events. The Company also
intends to study the efficacy of various event triggers for attaining load shift away from
actual distribution system peak and PJM 5CP hours. Additionally, the Company may
adjust its approach to mandatory events based on observations of the impact of
mandatory event frequency on customers’ voluntary participation in daily cycling,
ongoing participation in the program, and satisfaction with the program."
PECO projects the net costs of the residential BESS pilot to be $193,000, taking into account the costs of the BESS, customer acquisition and administrative costs, and revenue received under the lease payment from customers
Docket R-2026-3060859
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Would Encourage Participants To Take Time of Use Rate (No Retail Supplier TOU Rate Listed On PA Power Switch; Default Service TOU Option Available)
April 1, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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