Press Release

PUC Approves Expansion of Duquesne Light “Time of Use” Rate

Published on 4/10/2025

Filed under: Electric

Action Advances Broader Statewide Strategy to Manage Energy Demand, Support Grid Reliability and Help Consumers Control Energy Costs

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved an updated proposal from Duquesne Light Company that significantly expands the utility’s “Time of Use” (TOU) rate pilot program — making it available to a broader range of residential and small commercial default service customers who have smart meters.

Today’s 5-0 vote by the Commission approved changes to the original TOU pilot — which was initially limited to electric vehicle (EV) owners — expanding the opportunity for more customers to voluntarily shift their electricity usage to off-peak hours when energy is less expensive and there is less stress on the grid.

“This action is another important step forward as we confront the very real and growing challenges facing Pennsylvania’s energy landscape,” said PUC Chairman Stephen M. DeFrank. “Expanding the availability of Time of Use rates gives more consumers the ability to make informed decisions about how and when they use electricity — helping to reduce demand during peak periods, ease stress on the grid, and potentially lower their monthly bills.”

The expanded Duquesne Light pilot follows a December 2024 motion by Chairman DeFrank, directing the utility to broaden its proposed TOU rate design and make it accessible to all residential and small commercial customers with smart meters who receive default electric service from the utility. That directive was based on the Commission’s ongoing emphasis on tools and strategies that provide value to consumers while also helping to support long-term grid reliability.

Encouraging Broader Use and Awareness of TOU Programs

TOU programs establish different pricing based on the time-of-day electricity is used — reflecting variations in the wholesale cost of energy and the demands placed on the grid during different hours. By shifting more electricity use to lower-cost, lower-demand periods (typically overnight or midday), customers may be able to save money while also helping improve system efficiency and reduce the need for expensive, high-emission generation during peak periods.

These programs are entirely voluntary, and customers may return to standard default service rates at any time. For many consumers, TOU rates may be especially helpful for households with flexible energy use patterns — such as those who can shift laundry, dishwashing, or electric vehicle charging to off-peak hours.

PUC Chairman DeFrank has stressed the importance of expanding access to TOU rates and helping consumers understand how these programs work.

“We must use every tool at our disposal — what I’ve called an ‘all of the above’ strategy — to address increasing energy demands, concerns about generation shortfalls, and the impact those trends can have on reliability and prices,” Chairman DeFrank said. “Time of Use rates are one of those tools, and I commend Duquesne Light for moving quickly to expand this pilot. I also urge all electric utilities across the Commonwealth to strengthen their efforts to raise awareness of these programs, so consumers can better understand how they work and whether they’re a good fit for their households or businesses.”

A Statewide Focus on Energy Challenges

The expansion of the Duquesne Light TOU pilot program reflects the PUC’s broader commitment to supporting proactive, data-driven strategies to meet Pennsylvania’s evolving energy challenges.

The Commission continues to work closely with utilities, consumers, and other stakeholders to manage the impact of:

• Dramatic growth in electricity demand driven by new technologies and economic development;
  
  
• Emerging concerns about potential shortfalls in generation capacity during periods of peak demand; and
  
  
• The need to maintain both affordability and reliability for consumers across the Commonwealth.

Through initiatives like expanded TOU rate pilots, greater deployment of smart meters and real-time usage data, and ongoing investments in grid modernization, the PUC is helping to ensure that Pennsylvania’s energy system remains resilient, responsive, and sustainable in the face of growing challenges.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X (formerly Twitter), Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

# # #

Docket No.: P-2024-3048592

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov