PPL said that, under time-of-use rates, the amount customers pay for generation charges varies by season and by time of day. Electricity costs less to generate when people use less, and costs more to generate during peak hours when customer use is highest.
Customers who choose a time-of-use rate option can save money by shifting electricity use to times when it is less costly to generate, said the company.
The pilot program will begin in winter 2008 and continue through the end of 2009. It will be open to 1,200 residential customers on a volunteer basis. The company will mail invitations to customers until the program is filled.
According to PPL, the pilot program will test acceptance of time-of-use rates and study how best to help customers reduce their energy costs. The company has run a summer time-of-use pilot program since 2002. That pilot program, expanded this summer to 600 participants, will continue in the summer of 2009.
David DeCampli, president of PPL Electric Utilities, said: “We want our customers to have more control over what they spend on electricity and to be able to take advantage of rate options that may better match their usage habits.”
