Peco plans hourly rates to encourage customers to shift energy use to off-peak periods

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Contributed date

December 31, 2020 - 11:09am

Critical Commentary

PA regulators have approved PECO’s plan to implement time-of-use rates for its customers, including both residential and commercial consumers. The hope is that some will shift electricity use to off-peak hours, during which rates of use will be discounted. The system has three price tiers associated with times: the cheapest tier is between midnight and 6am; the most expensive tier is between 2-6pm, which is considered peak use; and the middle tier covers morning and evening hours. Curiously, the new policy will not be available to customers on PECO’s CAP (customer assistance program), for reasons not specified in the article. 

The plan to move away from flat-rate pricing satisfies part of Act 129, the state’s sweeping 2008 energy efficiency law. While many assumed that time-of-use pricing would be enabled by smart meters, these have been slow to adopt among PA residential customers. The PA PUC unanimously adopted the proposal. 

I think the biggest question for me is, why wouldn't PECO make this option available for low-income customers?

 

Source

Maykuth, Andrew. "PECO plans hourly rates to encourage customers to shift energy use." The Philadelphia Inquirer, December 4, 2020. https://www.inquirer.com/business/pennsylvania-peco-default-service-tou-... Accessed December 31, 2020.

Cite as

Anonymous, "Peco plans hourly rates to encourage customers to shift energy use to off-peak periods", contributed by Alison Kenner, The Energy Rights Project, Platform for Experimental Collaborative Ethnography, last modified 31 December 2020, accessed 1 March 2024. https://energyrights.info/content/peco-plans-hourly-rates-encourage-customers-shift-energy-use-peak-periods