Retail Supplier Urges Pennsylvania to Mandate Unit Pricing for Retail Energy

A retail supplier has filed comments with the Pennsylvania PUC urging the PUC to mandate volumetric, unit pricing for residential electric offers.

Specifically, Duquesne Light Energy, LLC said, in comments on the PUC's fixed price definition tentative order, that, "the Commission should consider incorporating the concept of 'price per kWh' into its chosen definitions for 'fixed price' and 'variable price', if it chooses to revise those definitions."

"If the term 'rate' is replaced by 'price' in the proposed Fixed Price and Variable Price definitions, the proposed definitions may not accurately reflect the realities of how customers are billed for electricity supply," Duquesne Light Energy said. "For instance, the proposed definition of 'Fixed Price' refers to an 'all inclusive price that will remain the same for a set period of time,' and does not make any reference to the commodity (i.e. electricity) to which the fixed price relates. The proposed definition more accurately describes a flat monthly charge scenario (i.e., $100 per month, $200 per month, etc.), which really does not exist in the electricity supply marketplace. For accuracy's sake, if the words 'rate' and 'electricity' are removed from the definitions as proposed, the definition of Fixed Price should be changed to 'an all inclusive price per kWh (or other unit of energy) that will remain the same for a set period of time ..... ' And the definition of Variable Price should be changed to 'an all inclusive variable electricity price per kWh (or other unit of energy) that can change by the hour, day, month, etc ..... ' This will codify the concept that customers are being billed a price per unit of energy, not just a 'fixed price' or 'variable price.'"