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Massachusetts Approves New POR Discount Rates

May 2, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Massachusetts DPU approved new purchase of receivables discount rates (standard complete billing percentages), effective May 1, 2016, at Nstar, National Grid, and Western Massachusetts Electric Co.

The new Nstar POR discounts effective May 1, 2016 are:

              Residential  Commercial  Industrial
Uncollectible    1.23%        0.17%       0.06%
Admin Cost       0.01%        0.01%       0.01%
Reconciliation  -0.25%       -0.05%       0%*
Total            0.99%        0.13%       0.07%*

*Note: The DPU approved Nstar's removal of a negative reconciliation discount component, with such reconciliation instead addressed in a one-time payment to suppliers (click here for details)

For comparison, Nstar's prior POR discounts were:

              Residential  Commercial  Industrial
Uncollectible    1.32%        0.21%       0.14%
Admin Cost       0.12%        0.12%       0.12%
Reconciliation  -0.17%       -0.01%      -0.01%
Total            1.27%        0.32%       0.25%

The new National Grid POR discounts effective May 1, 2016 are:

              Residential  Commercial  Industrial
Uncollectible    2.26%        0.81%       0.10%
Admin Cost       0.01%        0.01%       0.01%
Reconciliation   0.34%        0.06%      -0.09%
Total            2.61%        0.88%       0.02%

For comparison, National Grid's prior POR discounts were:

              Residential  Commercial  Industrial
Uncollectible    2.17%        0.86%       0.19%
Admin Cost       0.06%        0.06%       0.06%
Reconciliation  -0.04%       -1.19%       0.00%
Total            2.19%       -0.27%       0.25%

The new WMECO POR discounts effective May 1, 2016 are:

              Residential  Commercial  Industrial
Uncollectible    2.23%        0.20%       0.09%
Admin Cost       0.00%        0.00%       0.00%
Reconciliation   0.36%        0.05%       0.06%
Total            2.59%        0.25%       0.15%

Note that the DPU's order approved WMECO's discounts as "set forth above," in reference to a table in the order that included discounts only for residential, commercial, and industrial customers, and which did not list the -0.03% discount rate for the "other" customer class as contained in WMECO's original filing.

For comparison, WMECO's prior POR discounts were:

              Residential  Commercial  Industrial
Uncollectible    2.02%        0.14%       0.03%
Admin Cost       0.00%        0.00%       0.00%
Reconciliation   0.21%        0.01%       0.01%
Total            2.23%        0.16%       0.04%

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