News Stories
Sponsored by Earth Etch. Regulatory insight and compliance solutions for today’s energy markets.
PA PUC DENIES Duquesne Light’ Interim Increase In Default Service Rates
The Pennsylvania PUC (PA PUC) denies the application of Duquesne Light to increase -in the middle of the current six-month fixed price period which began on June 1, 2024 – the default service supply charges for residential and small commercial customers.
Excerpts from Secretarial Letter:
{***} The Bureau of Audits has reviewed Duquesne Light Company’s proposed Supplement No. 80 to Tariff Electric-Pa. P.U.C. No. 25 and the supporting rate computations submitted on August 15, 2024, to become effective on September 1, 2024.
Based upon staff review, it appears that the proposed Default Service Supply (DSS) rates for the Residential & Lighting and Small Commercial & Industrial classes for the three-month period of September 1, 2024, through November 30, 2024, are not consistent with the tariff and, accordingly, are not permitted to become effective as filed because the tariff requires it become effective 30 days after filing.
Based upon staff review, it appears that the proposed Electric Vehicle Time-Of-Use (EV-TOU) rates for the Residential & Lighting and Small Commercial & Industrial classes for the three-month period of September 1, 2024 through November 30, 2024 are not consistent with the tariff and, accordingly, are not permitted to become effective as filed because the tariff requires it become effective 30 days after filing. {***}
As previously reported Duquesne Light had sought to change the mass market default supply charges for the remaining three months of the six-month fixed price supply charge period, citing under-collections under the capacity proxy price mechanism due to much higher actual capacity prices from PJM’s recent BRA for 2025-2026.
In a Secretarial letter, the PUC found that Duquesne Light’s proposed changes to the supply charges, “are not consistent with the tariff,” and ruled that the changes are not permitted to become effective.
The sought mid-course rate adjustment would have increased the standard residential default service supply rate by 12%, from 8.1229 cents per kWh to 9.1088 cents per kWh, to be in effect from September 1, 2024, through November 30, 2024.
For small commercial and industrial customers under 25 kW (GS/GM, GMH, UMS), Duquesne Light had sought to increase the standard supply charge by about 8%, to 8.7898 cents per kWh from 8.1618 cents per kWh, to be in effect from September 1, 2024, through November 30, 2024.
Secretarial Letter (08/23/2024)
M-2024-3050756 (08/16/2024)
Adjustment Clause Rate Adjustments for Duquesne Light Company
