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PSC Makes Low-Income Benefits Portable (Benefits Now Available to Shopping Customers)

December 16, 2015

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

The District of Columbia PSC has adopted a final order to make low-income assistance under the current Pepco electric Residential Aid Discount (RAD) portable so that customers continue to receive the same level of assistance regardless of whether they purchase SOS or competitive supply

Currently, part of the RAD is applied through a unique SOS rate for RAD customers. Consequently, if a customer leaves SOS, they would lose the RAD discount related to supply

The PSC adopted a Staff proposal to make the discount competitively neutral by ceasing the use of a discount related to supply, and creating a new discount, the Residential Aid Credit (RAC) that would apply solely to distribution services.

Specifically, under the adopted design, the RAC will be set equal to the R and R-AE distribution customer charge and reflect volumetric charges. This will result in a discount of approximately 30% for the average RAD customer. The RAC will appear as a line item on RAD or RAD-AE customers’ bills and will totally offset distribution charges. In addition, as is currently the case, RAD and RAD-AE customers will not be subject to the various surcharges applicable to most electric customers, including the RAD Surcharge Rider, the Sustainable Energy Trust Fund Surcharge, the Energy Assistance Trust Fund Surcharge, and the Underground Project Charge Rider.

Eligible customers will receive the RAC regardless of their source of supply

Certain changes to the SOS rates classes will also be made to eliminate the former RAD SOS classes

Specifically, the PSC said that for the new SOS generation tariffs associated with the 2015-2016 SOS solicitation, for which the retail prices are due to be filed on January 22, 2016, the Commission expects R and RAD classes to be consolidated into one class given the elimination of the RAD generation discount. Similarly, R-AE and RAD-AE should be consolidated into one class. The removal of the RAD discounts for generation will be effective starting June 1, 2016 when the new generation rates from the 2015-2016 SOS solicitation take effect.

Additionally, the Commission expects Pepco to make a similar change in the transmission tariff. Pepco is further directed to refile its August 6, 2015 transmission tariff with the Commission removing the RAD and RAD-AE classes within 45 days. The RAD peak load contribution should be merged with R class and the RAD-AE peak load contribution should be merged with R-AE class, the PSC said

FC 1120

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