In its final order and opinion issued on March 9, 2010 the Pennsylvania Public Utility Commission found a Time of Use (TOU) program proposal by PPL “unjust and unreasonable.” The order directed PPL to modify the program to allow participation by renewable energy and net metering customers it previously excluded; questioned the cost-effectiveness of the program; and prohibited PPL from collecting more than $4 million dollars it proposed to spend for education and marketing costs. In addition, the PUC directed PPL to “absorb any costs of the TOU program that are the result of lost or decreased revenues due to reduced or shifted demand.”
This order is significant for net metering customers in the state because PPL was the first utility to file TOU rates with the PUC. Under Act 129, all utilities must file their TOU rates with the PUC by the end of the year. Once TOU tariffs have been put in place, net-metering customers will be able to negotiate among retail service providers and choose a service provider that provides the most beneficial kilowatt-hour trade.