Surge Pricing Comes to Orlando

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.