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Multi-Year Electric Pricing Plan Enhances Cost Equity  

NEWS HIGHLIGHTS

• The Orlando Utilities Commission (OUC) announces a multi-year plan to modernize its electric service pricing structures and share costs more equitably.
• OUC proposes to empower electric customers to better manage their energy use and save money.
• A Public Workshop will be held on 2 p.m., Thursday, June 13, 2024, at Reliable Plaza, located at 100 W Anderson St, Orlando, FL, 32801.

ORLANDO, Fla. – OUC—The Reliable One will propose a new multi-year plan to empower customers with more choices and new opportunities to save money, better align costs equitably with how customers use electricity, and optimize OUC’s reliable, affordable and sustainable power grid. Pending OUC board approval, the program is designed to modernize OUC’s electric pricing structures.

“Rapid population growth, increasing power demand, advancing customer-driven technologies and changing preferences are prompting utilities throughout the nation to implement similar pricing changes,” said Clint Bullock, OUC General Manager & CEO. “OUC must evolve to meet customer demand as we implement cost equity, preserve system reliability, and meet our CO₂ reduction goals while delivering price signals that provide cost saving opportunities for customers.” 

In 2020, OUC announced plans to reach net zero CO₂ emissions by 2050, with interim reductions of 50% by 2030 and 75% by 2040. As the utility continues on this path to clean energy, these pricing structure changes promote efficient use of the grid while using advanced digital technologies and effective price signals that deliver community-wide value. 

Step One 
The first pricing structure change reduces the variable cost per kilowatt hour (kWh) of electricity by introducing a new distribution charge for residential and small commercial customers. This new charge is designed in three tiers, set at $5, $10, or $15 per month, and is based on each customer’s peak demand to ensure that customers pay their equitable share for infrastructure. OUC anticipates 90% of residential customers will see a change ranging between a $5 increase and a $15 decrease in their monthly bill. 

Starting in 2025, OUC will introduce a new pricing structure, TruNet Solar, to compensate rooftop solar customers for extra electricity they produce and sell back to OUC. The program will help true-up the value of energy delivered to the grid by solar customers and reduce the current level of incentives. The change will be made gradually over seven years to ensure that rooftop solar customers and rooftop solar installers have ample time to prepare. In conjunction with this, OUC will relaunch an energy storage rebate program to encourage battery installation to enable rooftop solar customers to optimize electricity produced by their arrays.

Also, OUC will relaunch a community solar program, which will be called SunChoice, to offer customers the opportunity to help the community achieve clean, affordable power for all. 

Step Two 
In 2026, OUC plans to announce a new Shift & Save pricing structure for all customers. This program will offer price signals to encourage customers to shift their energy use to “off-peak” periods away from “peak” demand hours with an opportunity to save money. “Peak” demand is the time of day when consumer demand for electricity is the highest. 

To support Shift & Save, OUC conducted a pilot program and found that 98% of participants were satisfied or very satisfied with a time-based pricing structure. 

“Right now, electric customers can reduce their bill by conserving electricity and taking advantage of OUC’s rebate programs. With time-of-day rates, customers will also be able to reduce their bills by using electricity during off-peak periods,” said Bullock. “Providing options to save money is core to OUC, and we’re proud to offer a plan for our customers that balances the achievement of our goals of affordable prices, reliable services and a sustainable community.”

OUC will host a Public Workshop discussing these pricing changes on 2 p.m., Thursday, June 13, 2024, at Reliable Plaza, located at 100 W Anderson St, Orlando, FL, 32801. In the coming weeks and months, OUC will meet with customer groups in the community to receive feedback and hear customers’ ideas on program implementation. An informational website will also be launched soon. 

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About OUC—The Reliable One
In June 2023, OUC—The Reliable One celebrated 100 years of providing exceptional value to its customers and community through the delivery of sustainable and reliable services and solutions. The utility provides electric, water, chilled water, lighting and solar services to more than 400,000 accounts in Orlando, St. Cloud and parts of unincorporated Orange and Osceola counties. As OUC prepares for the next century, it remains committed to its goal of achieving net zero carbon emissions by 2050 while supporting its community with conservation, sustainability and energy efficiency resources. Visit www.ouc.com to learn more.