DLC Asks For Fall Rate Hike Again
In Pittsburgh, the back and forth of a recent rate hike request has come to resemble a game of tennis. On August 15, Duquesne Light Company (DLC) filed a rate increase request with the PA PUC. Within a week, the PA PUC denied it. Now, DLC has volleyed with a supplement to their tariff that may finesse their rate hike. Sounds complicated? Follow along as we sort out how Pittsburgh default service supply (DSS) could soon cost you more.
PA PUC Cites Tariff to Deny Rate Hike
Now on August 15, DLC filed for an interrim rate increase with the PA PUC. The reason was that PJM’s capacity auction results might cause a $7 million short fall in bill collections from their DSS. The auctions, which line up generators to supply power to the PJM grid, posted prices that were 10 times over past average results. These higher capactiy prices would increase the electricity bills for Pittsburgh price to compare customers paying DLC’s DSS rate.
By law, PA’s electric utilities must spell out their DSS rates in their tariff. The tariff covers rates, rate change procedures, defines customer types, plus additional riders that affect service. As such, tariffs must be approved by the PA PUC. For Pittsburgh area customers, DLC‘s tariff covers DSS rates and rules in Rider No. 8.
But there was a snag. DLC wanted the rate hike to start in less than 15 days on September 1. So, they requested a waiver for the part in Rider No. 8 that required a 30-day period to raise DSS rates. If the PA PUC approved the waiver, it would have raised the DLC‘s default rate to 11.51 cents per kWh from September 1 through November 30, 2024. This would have raised bills for Pittsburgh residential consumers by about $6.00.
However, on August 23, the PA PUC denied the waiver. The PA PUC stated the request was not consistent with the DLC tariff requirement for rate changes to go into effect 30 days after filing.
New Tariff Supplement Rule May Finesse Rate Hike
In response, DLC has now submitted a new tariff (PA PUC Reference Docket Number M-2024-3050905). This new filing includes Supplement No. 81 which stipulates that:
“…upon determination that the DSS, if left unchanged, would result in a material over or undercollection of supply-related costs incurred or expected to be incurred during the effective period, the Company may file with the Commission for an interim revision of the DSS to become effective thirty (30) days from the date of filing, unless otherwise ordered by the Commission.”
DLC is asking the PA PUC to authorize Supplement No. 81 by September 25. When it’s approved, DLC will use it to raise the average residential rate to 9.4438 cents per kWh. That’s about $8.00 more per month.
How Will PA PUC Choose?
If the PA PUC agreed to DLC‘s tariff change, then default supply service customers in Pittsburgh will likely see a rate hike this fall. It’s also possible that western PA consumers may face a colder winter and higher electricity prices this coming year. However, the two things PA energy consumers have right now is time and cheap electricity prices. As of this final week of August, 2024, most retail energy providers in the DLC footprint are able to beat the DSS rate by 2 cents per kWh or more. These rates will probably stay low for another few weeks. That means now is the time to shop for the cheapest long term plans. Start by comparing the cheapest rates. Then, shop for the best electric supplier by reading customer reviews and checking out rankings. Finally, lock in the lowest priced plan for the long term and save at https://www.paenergyratings.com.