Pennsylvania utility gets green light to start TOU tariff pilot


Pennsylvania energy company PPL Electric Utilities has received approval from the Public Utilities Commission for a pilot time-of-use tariff (TOU) programme available for residential, small commercial and industrial customers.

The commission voted 5-0 to approve the TOU programme, which will kick off on December 10, 2014.

Under the approved scheme, PPL will provide a TOU rate option to customers in its tariff, but it will rely on the retail market and participating electric generation suppliers to provide actual TOU service to its customers.

Off-peak and on-peak

TOU rate options offered by participating generating companies will consist of a rate that varies with time of use, but not as frequently as each hour, and includes off-peak and on-peak periods. Rates during off-peak periods will be lower than on-peak rates.

Off-peak hours cannot include the hours of 2:00pm to 6:00 pm on weekdays in June, July and August.

Participating generation companies

Electric generation suppliers that wish to participate in the programme must first qualify by being licensed by the commission with authority to provide service to residential and/or small commercial and industrial customers in PPL’s service territory.

Participating suppliers must provide a TOU rate option to these customers, from the initiation of the programme until May 31, 2015, which coincides with the end of PPL’s current default service plan.

Suppliers must also create and maintain a webpage that will be cross-referenced by PPL on its TOU webpage, which provides details about the available TOU rate options offered for the current quarter.

Customer participation in the pilot TOU programme is voluntary.

Commission approval

PPL filed a petition in May 2012 for approval of a default service programme that included a new TOU component. The TOU programme was not approved with the rest of the petition for DSP.

The Commission directed PPL to collaborate with interested stakeholders to resolve any issues regarding the development and implementation of the programme, and to file a new TOU rate proposal by August 23, 2013, which the company did.