PPL Electric Utilities seeks approval of new pilot time-of-use pricing option


David G. DeCampli,
President, PPL
Electric Utilities
Allentown, PA, U.S.A. — (METERING.COM) — September 15, 2008 – PPL Electric Utilities has taken another step toward making a time-of-use (TOU) pricing option available to all customers in 2010 with a request to the Pennsylvania Public Utility Commission on Thursday (9/11) to approve a year-round TOU pilot program.

If approved by the PUC, the pilot program would begin this winter and continue through the end of 2009. The pilot program would be open to 1,200 residential customers. The company has proposed to mail invitations to customers to take part in the pilot program until the program is filled.

The pilot program would test acceptance of TOU rates and study how best to help customers achieve success in reducing their energy costs. The company has run a summer TOU pilot program since 2002. That pilot program, expanded this summer to 600 participants, will continue in the summer of 2009.

The new year-round pilot program would include a summer generation charge (June through September) of 8.3 cents per kWh for electricity used during peak hours and 4.2 cents per kWh for electricity used during off-peak hours. For the other months of the year, generation charges would be 7.5 cents per kWh during peak hours and 4.6 cents per kWh off-peak.

Combining all components of PPL Electric Utilities’ standard residential rate produces an average generation charge of 5.3 cents per kWh in 2009 around the clock.

"We want our customers to have more choices for managing their electric use and greater control over what they spend on electricity," said David G. DeCampli, president of PPL Electric Utilities. "Our investments in advanced meters and our ability to track hourly usage information make these new pricing options possible."

DeCampli said the company plans to make hourly electricity-use information available online to all customers later this year. The information will enable customers to track more closely how activities in their homes affect usage. It will help pilot program participants test and monitor their ability to shift energy use to off-peak hours.

"Our ability to track hourly usage information supports electric competition because it will enable competitive suppliers to offer our customers a variety of pricing options in the future," DeCampli said. "This could lead to more options for our customers to pick plans that best fit their lifestyles."

PPL Electric Utilities Corporation, a subsidiary of PPL Corporation, provides electricity delivery services to about 1.4 million customers in Pennsylvania.