PUC Approves Updated Time-of-Use Rate for PPL Residential, Small Business Customers

HARRISBURG — The Pennsylvania Public Utility Commission (PUC) today approved an updated, voluntary program where PPL offers customers a rate based upon the time of day they use electricity.

The Commission voted 5-0 to provide PPL residential and small commercial and industrial customers the optional pricing for electric generation service, known as time-of-use (TOU) rates. Commissioner Robert F. Powelson issued a statement.

Under the TOU rates, higher rates would be charged for on-peak hours while lower rates would be charged for off-peak hours. The on-peak and off-peak periods are predefined for four summer months (June through September) and eight non-summer months. The actual on-peak and off-peak generation pricing will be set quarterly based on forward wholesale electricity market pricing.

The underlying objective of the TOU rates is to encourage customers to shift their electric usage from on-peak periods when wholesale demand and prices are high to off-peak periods when wholesale demand and prices are lower. The goal is to reduce peak demand on generation resources, contribute to reducing wholesale electricity power during the hours of highest demand and provide customers with an opportunity to reduce their monthly electric bills.

The program is effective on Jan. 1, 2011 and continues in line with PPL’s Default Service Procurement Plan through May 31, 2013.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.