Lena F. from Tacoma here. Puget Sound Energy just changed their TOU periods on Schedule 40 effective January 1st but my commercial client signed a contract in November based on the old peak hours. Old schedule had peak from 6-10 AM and 5-9 PM, new one is 3-8 PM only. PSE says the contract references the tariff "as amended" but client argues they relied on specific hours. Anyone dealt with similar TOU changes mid-contract?
Time-of-use periods changing mid-contract - how to track this mess?
Dale P. also in Spokane Valley - PSE pulled this same stunt last year on their residential TOU rates! Washington UTC approved it but there was a lot of pushback. The key is whether your contract language specifically references the TOU periods or just the schedule number. If it says "Schedule 40 as filed with UTC" then you're probably stuck with the changes.
Ted N. here in Spokane - I remember that UTC docket, it was 210595 or something like that. PSE argued the changes were revenue neutral but shifted costs from residential to commercial. Dale's right about the contract language being critical. I always try to lock in specific rate components now rather than just referencing schedule numbers.
Randy Dawson checking in. This is becoming more common as utilities adjust TOU periods to match grid conditions. From a regulatory standpoint, utilities generally have the right to modify tariffs with commission approval, and contracts that reference tariff schedules typically incorporate those changes automatically. However, if your client can demonstrate they made specific operational decisions based on the original TOU periods - like scheduling equipment to avoid the old peak hours - you might have grounds to argue detrimental reliance. Document any operational changes they made and costs incurred, then consider filing a complaint with the UTC. The commission sometimes provides transition periods or grandfathering for customers who can show material impact.
Glenda G. from Nampa - Idaho Power did something similar a few years back. We had success arguing that mid-contract TOU changes constituted a material modification that should void the original agreement. Customer was able to switch to a different rate schedule without penalties. Might be worth exploring with PSE.
Thanks everyone! Randy, that detrimental reliance angle is interesting - client did shift their production schedule to avoid the old 6-10 AM peak and now that's actually off-peak under the new structure. Ted, I'll look up that UTC docket for background. Glenda, did your Idaho Power customer have to demonstrate financial harm to get out of the contract?
Lena, yes they had to show increased costs from the TOU change. In our case it was about $800/month higher bills under the new periods. Idaho PUC required pretty detailed documentation but ultimately agreed the customer shouldn't be locked into terms that materially changed after signing.
Robert F. in Jacksonville - Florida PSC has been dealing with this issue a lot lately. FPL changed their TOU periods twice in 18 months and there were tons of complaints. The key seems to be whether you can show the utility had knowledge of planned changes when the original contract was signed. If they knew changes were coming and didn't disclose, that could be bad faith.
Update: filed a complaint with UTC and PSE agreed to honor the original TOU periods through the end of our contract term! They said it was a "one-time accommodation" but I think the detrimental reliance argument Randy mentioned carried some weight. Thanks for all the help everyone!