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Pennsylvania Utility Proposes To Move To Quarterly Default Service Rate Changes, From Current 6-Month Changes
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Pike County Light & Power Company has petitioned the Pennsylvania PUC for approval of a new electricity default service plan (DSP) for the period June 1, 2027 through May 31, 2030 that would, among other things, include more frequent updates to the default service rate
Under the proposed DSP, Pike would generally maintain the current product mix for default service, which is reliant on NYISO Zone G day-ahead priced energy with some financial hedging
However, Pike does seek the authority to change the entity serving the default service load
Specifically, Pike seeks authority to undertake three options for serving non-shopping customers' load
The first option would conduct a competitive bid process for a wholesale electric supplier to serve the Pike default service load, similar to the current process
The second option would be for Pike to become an LSE in NYISO and bring SOS electricity
procurement functions in house.
Under the third option, "Pike would avoid the time and expense of another competitive
solicitation process and instead continue utilizing the supplier chosen to procure energy for Pike
from August 2026-May 31, 2027 if certain conditions are met." The specific conditions proposed by Pike for such continuation are filed on a confidential basis
Pike also proposes to modify how frequently it changes default service rates, proposing to set fixed quarterly rates for all customer classes, with each class having its own, unique fixed quarterly rate (currently, all customer classes have a unique 6-month fixed default service charge), with Pike also seeking the ability to change the rate on an interim basis in between quarterly updates as conditions warrant, noted further below
Specifically, Pike would change the base supply charge (Market Price of Electric
Supply), which is based on a forecast, each quarter, rather than every 6 months as done currently
Pike would also update the reconciliation component (Electric Supply Adjustment Charge) every quarter, rather than every 6 months as done currently
The reconciliation component is currently subject to a 2 cents per kWh cap for any rate change
Pike proposes to increase this cap applicable to changes to the reconciliation component to be 5 cents per kWh
In support of the revised cap on reconciliations, Pike said, "The current inability to more frequently adjust rates and the current 2 cent cap have
resulted in chronic under collections that do not timely and accurately reflect to customers the
true costs of electricity procurement. Not only has this negatively impacted cash flow, pricing
that does not reflect true costs fails to provide the appropriate signals to customers to conserve
energy."
Pike also, "seeks to implement the ability to more frequently adjust rates if it incurs a substantial over
or under collection".
Specifically, Pike proposes to add tariff language providing that, "Upon determination that the Default Service Charge rate would result in a
material over or under collection of purchased power costs incurred or expected to be incurred during the current quarter computation period, the Company may
file with the Commission for an interim revision of the Default Service Charge
rates to become effective on five days’ notice."
As part of the DSP, Pike proposes various revisions to the electric generation supplier coordination tariff, which was last updated in 1999. Pike generally states that such updates are being made to reflect current practice and to remove outdated information
Revisions to the current coordination tariff's provisions concerning sync lists and eligible customer lists are proposed by Pike, but it is unclear if these revisions only represent the reflection of current practice, or changes from current practice
The EGS tariff changes would specifically note that, per prior PUC order, Pike is not required to implement EDI functionality for coordination with retail suppliers
Pike proposes to deploy advanced meters and, as part of the DSP, seeks a nonbypassable surcharge to recover AMI deployment costs
Under Pike's chosen AMI solution, Residential Meters would record hourly Interval Data and, by default, report
such hourly data nightly. "Residential Meters may be configured to record and/or
provide 15-minute Interval Data upon request," Pike's petition states
Commercial AMI Meters would record 15-minute Interval Data and, by default,
report such data hourly. Commercial Meters may be configured to record and/or
provide 5-minute Interval Data upon request, Pike's petition states
Docket P-2026-3062915
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Also Proposes More Frequent Reconciliations, Removal Of Cap On Reconciliation Rate Changes
Seeks Ability To Serve As Load Serving Entity For Default Service, Directly Purchase From ISO
Proposes Deployment Of AMI
June 2, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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