The plan would provide incentive to Pepco’s Standard Offer Service (SOS) customers for lowering their energy use during peak energy demand and electricity supply cost.
The proposed discount pricing rate design and plan were formulated from the experience gained from the District of Columbia’s PowerCentsDC smart meter pilot program.
Upon approval by the DC Public Service Commission, the plan would establish two new SOS rate structures with charges based on when electricity is used.
As per the plan, customers will get a rebate for reducing energy use during peak-demand events, times when both energy demand and prices are high. Pepco customers choosing the rebate plan could save $1.25 per kWh during such peak periods, the company said.
The customers would also get a discount rate for reducing their energy use during non-peak hours in addition to the savings they would get for reducing energy use during peak-demand events.
Pepco defines a peak-demand event as occurring between 2pm and 6pm from June to October. There could be up to 15 peak-demand events a year. Pepco customers who prefer to remain on their existing rate will have that option.
Under Pepco’s proposal, peak-demand events will occur on summer days when electricity demand and wholesale hourly energy prices are higher.
Pepco has also asked the Public Service Commission to establish a customer education working group to help familiarize customers with their rate options and to develop customer education materials.
