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Pa. Utility To Remove Uncollectibles From POR Discount, Transfer To Delivery Surcharge Under Settlement; Retail Supplier Opposes

September 27, 2016

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

Under a non-unanimous settlement in Duquesne Light's default service proceeding, the utility would remove the uncollectibles component of the purchase of receivables (POR) discount, and instead collect such amounts through a nonbypassable delivery service surcharge on all customers.

Specifically, under the settlement, Duquesne Light would, effective June 1, 2017, eliminate the uncollectible accounts component of the POR discounts for retail suppliers.

Calendar year 2015 POR discount expense of $797,900, POR uncollectible expense, will be moved to Duquesne Light's Rider 1 RMES (Retail Market Enhancement Surcharge) for recovery until the next base rate proceeding. The amount of $797,000 will be fixed. Recovery of other uncollectible expenses will remain in base rates.

The administrative cost component of the POR discount (0.1%) will continue

The settlement was signed by Duquesne Light, the Office of Consumer Advocate, the Office of Small Business Advocate, the Coalition for Affordable Utility Service and Energy Efficiency in Pennsylvania, the Retail Energy Supply Association, and Exelon Generation Company, LLC

Noble Americas Energy Solutions LLC opposed the settlement's change in POR uncollectibles treatment

"Noble opposes Paragraph 22 of the Non-Unanimous Settlement which, if approved, would eliminate the uncollectible expense component of Duquesne's Purchase of Receivables ('POR') discount for open market, competitive electric generation suppliers ('EGS') that elect to participate in the POR program and allow Duquesne to recover those costs until its next base rate proceeding through its Rider No. 1 Retail Market Enhancement Surcharge which is recoverable from all customers regardless of their chosen EGS and irrespective of the billing mechanism employed by that EGS," Noble said in a letter informing the PUC of its opposition. Noble will file a formal objection more fully addressing its opposition at a later date

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