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An unopposed rate case settlement with Duquesne Light includes the adoption of two residential pilot programs that include a Managed Electric Vehicle (EV) Charging Pilot and a Behavioral Load Management Pilot.

Excerpts from the Settlement Agreement:
{***} Duquesne Light Company (“Duquesne Light” or the “Company”), the Bureau of Investigation and Enforcement (“I&E”) of the Pennsylvania Public Utility Commission (“Commission”), the Office of Consumer Advocate (“OCA”), the Office of Small Business Advocate (“OSBA”), the Coalition for Affordable Utility Service and Energy Efficiency in Pennsylvania (“CAUSE-PA”), the Pennsylvania Weatherization Providers Task Force, Inc. (“PWPTF”), and Walmart, Inc. (“Walmart”), hereinafter collectively the “Joint Petitioners,” hereby join in this Joint Petition for Approval of Settlement (“Settlement”) which resolves all issues among the Joint Petitioners. Notably the Joint Petitioners were the only parties that submitted testimony in this proceeding. The City of Pittsburgh (“City”) also has indicated that it does not oppose the Settlement. All active parties in this proceeding either support or do not oppose the Settlement.

The Joint Petitioners respectfully request that Deputy Chief Administrative Law Judge Mark A. Hoyer (the “ALJ”) recommend and that the Commission approve all terms and conditions of the Settlement without modification. The Settlement provides for increases in rates, as set forth in the form of tariff supplement attached as Appendix A and the proof of revenues attached as Appendix B to this Petition. These rates are designed to produce a net increase in annual base distribution operating revenues of $85.1 million, which includes $32.1 million of revenues currently recovered under surcharges, resulting in an increase in revenues of $53.00 million, based upon data for a Fully Projected Future Test Year (“FPFTY”) ending December 31, 2025, as adjusted for ratemaking purposes, to become effective for service rendered on and after December 20, 2024. 

The effect of the Settlement on residential Rate RS customer rates is set forth in Table 1 below and in Appendix C.

Table 1
Rate RS – Residential Service
Using 600 kWh

Additional detail for the effect of the change on Residential Heating Service customers – Rate RH, Small Commercial customers – Rate GS, Medium Commercial customers – Rate GM>25 and Industrial customers – Rate GL is provided in Appendix C. Appendix D provides an analysis of Present, Proposed and Settled Rates for all rate schedules. {***}

Residential Managed Charging Pilot:

The Residential Managed Charging Pilot would be limited to 500 customers. 

Under the Residential Managed Charging Pilot, Duquesne Light will pause a customer’s EV charging, for a period expected to last two to four hours (and no more than six hours), during an anticipated 10-15 called events each year. Events, which will take place between 12 pm to 9 pm and most likely will occur between 3 pm and 9 pm, are expected to be called in the period June through September. Customers may opt-out of an event and continue charging their EV.

Customers in the Residential Managed Charging Pilot who participate in at least 50% of the called events for a month will receive $20 for that month, in the form of a pre-paid debit card or direct bank deposit. Duquesne Light would have the right to alter the amount of the incentive payment by up to 25% without advance notice to the customer.

vehicles that are the best candidates for electrification, calculating total cost of ownership, estimating GHG emissions and emission reductions, identifying financial incentives, and estimating the charging infrastructure needed for electrification.

Residential Behavioral Load Management Pilot:

The Residential Behavioral Load Management Pilot would be open to 7,500 customers.

The rate case stipulation would also approve Duquesne Light’s Residential Behavioral Load Management Pilot.

Under the Residential Behavioral Load Management Pilot, customers may opt-in to participate and would be paid an incentive, initially set at about $1.00/kWh, for reduced usage versus a baseline described below for five called peak Events annually. Duquesne Light would have the right to change the amount of the per kWh payment by up to 25% without advance notice to the customer.

Customer action in response to an alert about an Event would be voluntary, and there would be no penalty for non-action. Customers would be paid annually any earned incentives via digital gift card.

Under the Residential Behavioral Load Management Pilot, called Events would last no longer than six hours and would occur on weekdays and non-holidays during the period June 1 through September 30. Events are expected to occur between 3 PM and 9 PM but may be called during other hours.

Customers would be notified of an event in advance by phone call, email, text, or mobile app alert.

To determine a customer’s baseline usage in the Residential Behavioral Load Management Pilot, Duquesne Light will initially review the 15 previous days that are not weekends, holidays, or prior Events under the program. For each of the 15 days, the kWh usage, and the Heat Index for the hours of the Event, will be compiled. The days with the five highest kWh values are averaged to determine the participant’s baseline. If any of the five days did not have similar weather to the Peak Event (within 10% of the Heat Index), they will be excluded from the average. If there are no days of similar weather, the baseline is set equal to the kWh for the highest load day. If a participating customer’s consumption is lower during an Event than their baseline, the customer would earn the per kWh incentive payment on the difference.

Costs of the Residential Behavioral Load Management Pilot include $325,000 in O&M for an implementation contract and would be recovered in delivery rates.

Fourth Interim Order-Objections And Comments (08/19/2024)
Joint Petition For Approval Of Settlement   (08/19/2024)
R-2024-3046523  (02/20/2024)
Duquesne Light Company Filed Rate Increase Request