Press Release

PUC Approves Pilot Time-of-Use Programs for Duquesne Light Residential Customers

Published on 4/26/2012

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved two voluntary pilot programs that offer special rates to Duquesne Light Co. residential customers based upon the time of day or days they use electricity.

The Commission voted 5-0 to provide Duquesne pre-enrolled residential customers the optional pricing for electric generation service, known as time-of-use (TOU) rates.  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 TOU-1 pilot program, also known as the Smart Sense Time-of-the-Week pilot program will evaluate the customers’ ability to reduce their electricity use weekdays from June 2012 through September 2012, as compared to the corresponding months in the prior year.  Under TOU-1, if a customer can reduce monthly usage by at least 10 percent, the customer will receive a 10-percent credit on the generation portion of their bill for that month.  Participants who reduce their monthly consumption by at least 10 percent in June 2012 through September 2012 will receive an additional 10 percent off their September 2012 generation charges. 

Participation in the TOU-1 pilot program is limited to the 1,341 residential default service customers who pre-enrolled as of June 1, 2011. 

The TOU-2 pilot program, or Smart Sense Time-of-Day pilot program, encourages customers to shift their electricity usage from on-peak periods when wholesale electricity demands and prices are higher, to off-peak periods when demands and prices are lower.

The program is limited to the 111 residential customers that pre-enrolled in the TOU-2 pilot program, which includes two time-of-day (TOD) programs.  This pilot is also a temporary program that will run from June 2012 through September 2012. 

Under the TOD-1 pilot program, the on-peak period will run weekdays from 1 p.m. until 6 p.m., with a rate of 15.72 cents per kWh.  The off-peak period will occur between 12 a.m. to 1 p.m. and 6 p.m. to 12 a.m., weekdays, and all weekend hours.  The rate for the off-peak period will be 6.13 cents per kWh. 

Under the TOD-2 pilot program, the on-peak period will run weekdays from 4 p.m. until 6 p.m., with a rate of 31.44 cents per kWh.  The off-peak period will occur between 12 a.m. to 4 p.m. and 6 p.m. to 12 a.m., weekdays, and all weekend hours.  The rate for the off-peak period will be 5.86 cents per kWh. 

Both programs will become effective on or before April 27, 2012. 

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.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. R-2012-2294694 and P-2012-2295300

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