In a string of poor decisions from Central Florida government, the Orlando Utilities Commission (OUC) is announcing a new surge pricing plan called Peak Shifting. Under the plan, electric rates will be higher during the hours of 2pm through 8 pm. This is an idea that OUC first proposed back in March.
The plan, according to OUC, will be to charge more for electricity use between the hours of 2-8 p.m and decrease rates during other hours. This is where a Powerwall, either with or without solar, can be a good thing to have. You program the Powerwall to charge during off peak hours, and power the house during peak times.
Another part of the plan is called Truenet Solar. Under this plan, the 10,000 people in OUC’s area who have solar systems would see the amount paid for their excess solar generation reduced from 10.7 cents per kWh to 4.6 cents kWh. Customers who are already part of the program on June 30, 2025 are grandfathered in for 20 years.
This plan would merely make me add more Powerwalls, because it no longer is worth it to send power back to the grid when you are buying it at 10.7 cents, but can only sell it back at 4.6 cents. Picture that I send solar power into the grid during the day, selling it at 4.6 cents. Then when the sun goes down, I have to buy that power back at 10.7 cents. I am better off storing it in my Powerwall and not sending it to you at all.
Remember that the price of 6.1 cents is the starting point. It will get higher.
I am not part of OUC’s service area, but this is a great bellwether of things to come. Electric rates are going to climb, and I think that Florida will begin to see more and more of this peak pricing. I also see those of us who are on solar will be under siege because there are enough of us to be cutting into electric utility profits, especially the ones that are run by government such as OUC.
7 Comments
Gerry · December 11, 2024 at 9:37 am
Sort of strange.
When I was a PECO (spit) customer many years ago, their peak hours were 8:00 to 17:00. That encouraged homeowners to use power in the evening when business need less energy. It would appear OUC is putting more of the cost on homes and not industry.
oldvet50 · December 11, 2024 at 3:49 pm
I spent most of my working years at electric utilities (Houston, Fla Power, and finally ERCOT). I am surprised that OUC can implement something like this since those special meters are much more expensive than the normal kWH ones. Every place I worked offered it as a choice, but since there was an investment in the special meter, it required a two year commitment. Most people that used it saved a bundle by shifting their use to off peak. As far as you selling your power back to them, do you really expect them to pay retail prices?
Divemedic · December 11, 2024 at 9:34 pm
Most utility companies trade solar excess one for one. Any excess at the end of the year is bought at wholesale.
SailorPaul · December 11, 2024 at 4:25 pm
I haven’t seen FPL try to pull any of this BS, for which I am grateful.
TECO used to own their own coal ships and some supersized oil barges to power their plants and take advantage of spot market pricing for energy. They spun the fleet ops off into a separate company and sold it eventually. The lawyers don’t like being in multiple parts of the enegy stream. Exxon did the same thing.
Cost mitigation becomes less important when you have fully captured the customers.
lynn · December 12, 2024 at 2:15 am
I have been wondering when ERCOT will implement time of day pricing. ERCOT calculates the cost of generation every five minutes when they run a dutch auction to see where they will buy the power from.
We used to have a supplier in ERCOT called Griddy. They charged their users the exact pricing that ERCOT charged. But they died when they could not pay for the cost of electricity during the Feb 2021 freeze at 5,000 cents/kwh. Yes, that is 5,000.
https://en.wikipedia.org/wiki/Griddy_(company)
Ralph · December 13, 2024 at 10:10 pm
It will come down to the fact that they don’t want or need your power for the grid. No more feelz good for solar. You don’t contribute to their infrastructure, you don’t generate tax revenue. Your small contribution is a virtue signal, nothing more. If you can’t store it for your own use, you will pay them for the privilege of grid connection. I get the power wall storage, but your ROI will be gone with the new up charges coming. TANSTAAFL.
Divemedic · December 14, 2024 at 8:09 am
I don’t care if they aren’t required to buy my power. I just don’t want to be forced to be connected to them.
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