OUC Approves Time-of-Day Rates: Peak Pricing Raises Concerns

ORLANDO, Fla. – The Orlando Utilities Commission (OUC) has unanimously approved a new time-of-day billing policy for its customers. This policy establishes individual prices for peak and non-peak kilowatt-per-hour (kWh) rates.

“This is a reallocation of costs,” said Mindy Braenay, Ex-Officio CFO of OUC. “This is not an increase, and this is not surge pricing.”

The PeakSHIFT program was introduced two months ago as part of OUC’s strategy to address the rapid growth and electricity demands in Central Florida and to work towards achieving its net zero carbon emission goals by 2050.

As per the plan, OUC will implement higher charges for electricity usage between 2-8 p.m. During these peak hours, customers can expect increased billing for energy consumption, while non-peak kilowatt-per-hour rates will see a decrease. The aim is to strike a balance – OUC anticipates that with minor adjustments to their energy usage habits, customers will likely notice minimal impact on their bills.

As an example: If a customer uses a dishwasher, clothes dryer, or even a pool cleaner during peak hours, OUC says they can save money by using those appliances before 2 p.m. or after 8 p.m. The idea of using electricity during off-peak hours – dubbed Shift & Save – could actually end up being a big money saver for some of OUC’s 280,000 residential and small business customers.

“This is not designed to collect one penny more and customers will see the same average price,” Braenay said.

At today’s meeting, some residents, however, were skeptical of the commission’s plans.

“It would surprise me very much if in practice it would come out as the way it was intended,” said Jim Moyer of Ocoee.

“People are going to be paying a lot more money on their bills, every month,” added Bill Johnson, President of FlaSEIA, the Florida Solar Energy Industries Association.

Johnson had a specific reason for attending today’s meeting – he spoke out against another part of the PeakSHIFT plan, TruNet Solar: how the utility planned on interacting with its 10,400 existing customers with residential solar energy systems.

“I absolutely honor the sincerity and stuff that you guys have come forth with these proposals,” said Johnson, “but I can tell you, this is not going to turn out how you like it.”

After years of buying back electricity from customers with rooftop solar panels, under PeakSHIFT, a new pricing policy would be instituted that reduces the amount of money residents receive for sending electricity back to the grid. The details: the price would drop from 10.7 cents per kWh to 4.6 cents kWh. Customers who are already part of the program to send electricity back to the grid are grandfathered in for 20 years. That 20-year exemption will also apply to any OUC rooftop solar customer in the program before June 30, 2025. For new customers (after July 1, 2025), OUC will only guarantee that 4.6 cent rate for five years.

Johnson also pointed out that the grandfathering clause only applies to the owner of the property, not the system. Translation: When the property gets sold, even inside of the 20-year window, the grandfather benefits end.

“Even a small or minimal price hike, in anything related to solar energy, that hurts people directly in their own pockets,” said Matthew Grocholske of Sunrise Movement Orlando.

With today’s vote, the Time-of-Day part of PeakSHIFT is scheduled to be instituted in January of 2027. Braenay told News 6 that OUC plans to monitor customer accounts and has the flexibility to make changes as needed. One last thing: this is not something new. Many municipalities already have similar electricity plans like this in place: Braenay pointed to Sacramento Municipal Utility District (SMUD) time of day pricing (5p-8p) that actually uses a three-tier pricing system (Off-Peak, Mid-Peak, and Peak) and also only institutes Time-of-Day pricing in the summer (between June 1 and September 30).

Want to check on how much electricity you’re using? OUC suggests using this energy guide to help you monitor your energy usage and to keep tabs on electricity through your usage dashboard.