ORLANDO, Fla. – The Orlando Utilities Commission board is set to make a final decision Tuesday on the proposed PeakSHIFT program.
The plan, which introduces a new demand-based pricing model, could add $5 to $15 to customers’ monthly bills based on their energy usage during peak hours.
Tuesday’s vote comes amid pushback from customers as well as clean energy advocates.
Under the program, customers would pay an extra $5 to $15 each month based on how much energy they used during peak hours. However, under the plan, even solar customers could face higher charges for occasional energy spikes.
Critics argue that will undermine the city’s effort to promote clean energy.
How the Program Works
PeakSHIFT would calculate charges based on a customer’s energy demand level, encouraging users to shift their consumption to off-peak times. OUC said the program aims to promote energy efficiency and help reduce strain on the grid.
“This program incentivizes smarter energy habits and helps us manage demand more effectively, which benefits everyone in the long term,” an OUC representative said.
Critics Push Back
Despite these claims, critics argue the plan may hurt more than it helps. Clean energy advocates say the program disincentivizes rooftop solar power and could lead to higher bills for low-income residents who lack the resources to invest in energy-efficient appliances.
“This proposal penalizes families trying to save money with solar and puts Orlando’s renewable energy goals at risk,” Susannah Randolph of the Sierra Club said.
Orlando has committed to achieving 100% renewable energy by 2050. Advocates argue this target requires robust support for small-scale solar and energy efficiency measures—areas they believe the PeakSHIFT program undermines.
OUC released a statement last week regarding the program:
For more than 100 years, through ongoing collaboration with our customers, employees and community partners OUC has continuously evolved our programs to deliver affordable electricity while meeting the demands of our growing service territory.
As the latest part of this evolution, we have proposed a new revenue-neutral pricing program – PeakSHIFT – to empower our customers with money-saving options while supporting the efficient use of electricity that will help OUC reach our goal of net zero CO2 emissions by 2050.
Since first announcing the program proposal in June 2024, OUC has actively engaged in discussions with stakeholders, customers, social and environmental advocacy groups, and other community members.
Those conversations have identified some misinformation that we would like to address in the statements below:
Claim: “OUC’s PeakShift and TruNet rate proposals will result in doubled utility rates for all Orlando residents.”
Fact: PeakSHIFT and TruNet Solar will not result in doubled utility rates for OUC customers as it is designed to be revenue neutral. We anticipate small monthly bill changes with about half of OUC’s nonrooftop customers seeing lower or no change to their monthly bills because of DemandLevel and Shift & Save pricing. About 30% will see an increase of up to $2 per month, and 20% may see increases from $3 to $5. Less than 1% may see monthly increases of $6 to $12.
For existing rooftop solar customers, PeakSHIFT provides a grandfather provision and anticipates their monthly bills will increase by $5. After July 1, 2025, new TruNet Solar customers’ bills will differ and OUC will provide usage comparisons to ensure these customers make the best financial decision for their situation.
Claim: “OUC is proposing drastic changes to its consumer electric rate plans. These changes will cause serious negative impacts to the entire Orlando community.”
Fact: PeakSHIFT and OUC’s new rate structures are designed to align costs more equitably with how customers use electricity and are based on each individual customer’s use of the system. Rather than raising prices, customers who demand less of the system will pay less and those who demand more of the system will pay more.
DemandLevel and Shift & Save pricing are designed to empower customers with new options to save on their bills by shifting how and when they use electricity. These programs are not expected to disproportionately impact working families or low-income households. Additionally, customers who do not benefit from Shift & Save can opt out of the program.
Claim: “Forces ALL Orlando consumers to foot an inflated utility bill.”
Facts: PeakSHIFT is designed to keep rates low and provide customers with new opportunities to save. OUC is committed to providing affordable electricity as demonstrated by our record of cutting rates. As an example, we approved reducing fuel rates by 5%, effective July 1, 2024 – the third fuel rate decrease since June 2023.
OUC residential electric rates are well below the state and national average. According to the U.S. Energy Information Administration, OUC residential electric customers paid an average of 12.6¢/kWh in 2023, compared to the Florida average of 15.2¢/kWh and the national average of 16¢/kWh.
Claim: “More than 10,000 local jobs in jeopardy.”
Facts: While we must make the best decisions for all our customers, we recognize that these programs will have an impact on portions of the solar industry. However, we do not anticipate that solar installation aligned with new construction single-family homes will be significantly impacted.
Our original solar incentive for rooftop solar customers is no longer financially cost-effective with today’s grid realities and utility-scale solar delivers better value. Utility-scale deployment is about a third of the cost per-kilowatt of residential rooftop PV. In addition, our original incentive structure for rooftop solar was designed 16 years ago when the cost for these systems were significantly higher than today’s prices.
Also, we are moving forward with a residential energy storage system rebate program, which will help incentivize continued rooftop solar installations and create new business opportunities for enterprising installers.
Claim: “Doubled utility rates to fund OUC’s lavish expenses.”
Facts: As a municipal utility, OUC’s rates are not aimed at making profits for investors or shareholders. Our rates are designed to equitably finance the costs of reliably serving our customers’ needs and delivering value to the community. Our commitment is to deliver reliable, affordable, sustainable and resilient energy services, and we continually refine our pricing mechanisms to reflect changes in customer demand, address cost inequities, and adapt to advances in technology.
Impact on Solar Adoption
One of the most contentious aspects of PeakSHIFT is its potential effect on rooftop solar customers. The proposed demand charges could reduce the financial benefits of installing solar panels, making it harder for homeowners to justify the investment.
Tuesday’s meeting and vote is set for 2 p.m.
To learn more about the program, click here.
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