Energy Choice
                            

Matters

Archive

Daily Email

Events

 

 

 

About/Contact

Search

PECO Files To Recover New Costs Via POR Discount, Add Merchant Function Charge

March 18, 2015

Email This Story
Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

Consistent with prior Pennsylvania PUC direction, PECO has filed to begin recovering uncollectible costs through its natural gas purchase of receivables discount, and to create a bypassable Merchant Function Charge to recover uncollectibles from default service customers.

PECO's original gas POR discount rate only included a temporary 1% discount for implementation costs. Uncollectibles, for both competitive supply and sales service customers, are currently recovered in base rates.

However, after PECO's program was implemented, the PUC adopted regulations regarding the unbundling of natural gas procurement costs. Such regulations provide that distribution companies are required to file a bypassable Merchant Function Charge (MFC) rider, and that the MFC rider, "must remove the cost of uncollectibles applicable to natural gas costs from its distribution rates and recover those annual costs as part of the PTC [Price to Compare] on a revenue neutral basis."

Moreover, the adopted regulations provide that a distribution company's POR program, "shall use a discount rate designed to reflect the NGDC's [distribution company's] actual uncollectible rate for supply service customers," plus any incremental implementation and administrative costs of the POR program.

Distribution companies with existing POR programs that did not have a defined term, such as PECO's, were given until April 14, 2015 to update their POR program to be consistent with the adopted regulations

PECO has now filed in tariff form proposed new POR discount rates which will result from compliance with the PUC's directives.

PECO will implement a POR discount of 2.07% for Rates GR and CAP, 1.30% for Rates GC and the Excess Off-Peak Use Rider, and 1.00% for Rates OL, L and MV-F, proposed to be effective June 1, 2015

The bypassable Merchant Function Charge will reflect the application of the uncollectibles percentage factor of the POR discount (1.07% for Rates GR and CAP; 0.30% for Rates GC and the Excess Off-Peak Use Rider) to sales service commodity costs.

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Electricity Analyst -- Retail Supplier
NEW! -- Natural Gas Pipeline Scheduler -- Retail Supplier
NEW! -- Business Development - Energy Advisor -- Houston
NEW! -- Billing & Transaction Analyst -- Houston
NEW! -- Associate Counsel, Regulatory Affairs -- Retail Supplier
NEW! -- Marketing Director -- Retail Supplier
NEW! -- Energy Supply Trader - Retail Supplier -- Houston
NEW! -- Sales Director -- Retail Supplier -- New York
NEW! -- Sr. Pricing Analyst -- Retail Supplier -- Houston
NEW! -- Business Development Manager – Broker Sales -- Retail Supplier -- DFW
NEW! -- Senior Business Development Manager -- Retail Supplier
NEW! -- Senior Risk Management Energy Analyst -- Retail Supplier
NEW! -- Energy Services Account Manager -- Retail Supplier
NEW! -- Energy Consultant/Sales -- New York
NEW! -- Director, Account Management
NEW! -- Director of Business Development -- Houston
NEW! -- PJM Pricing Manager/Director -- Retail Supplier -- Houston

Email This Story

HOME

Copyright 2010-15 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search