Pa. utilities may try new pricing method

Posted : Mon, 22 Jan 2007 19:59:01 GMT
By : Energy News Editor
Category : Environment
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HARRISBURG, Pa., Jan. 22 Members of the electric utility industry testified recently at a Pennsylvania Public Utility Commission hearing to promote time-of-use pricing.

The commission is considering charging customers based on when they use electricity. During times when energy use is heavier, prices will be higher, The Patriot-News reported. The utilities already pay higher rates to suppliers during times of peak use.

Customers pay a flat rate that accounts for both peak and off-peak use. Proponents of time-of-use pricing say it will make customers more aware of how much electricity they are using and create more energy-efficient consumers.

Though the new pricing scheme may promote energy conservation the charges are highly varied and may create major lifestyle changes for customers, said Steve Carrico, a utility consultant and witness at the PUC hearing last week.

He sited a plan in Wisconsin developed by WPS Resources. That plan charges 6 cents per off-peak kilowatt hour of usage and more than double that, 17 cents, for peak kilowatt hours used. For the 150 hours with the most usage, customers will be charge 45 cents per kilowatt hours.

That's pretty drastic, Carrico said. They have got to be able to show the value.Not everyone has a 9-5 schedule, Carrico pointed out. Customers will not all be affected in the same way.

Copyright 2007 by UPI

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