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Pa. PUC Approves Recovery Costs of Retail Supplier Account Number Look-Up Tool Via Delivery Rates, Not POR Discount
The Pennsylvania PUC approved a revised compliance plan governing Philadelphia Gas Works' implementation of a remote account number look-up mechanism, which now does not recover costs through PGW's purchase of receivables discount rate, and which instead recovers implementation costs through a delivery charge.
As first reported by EnergyChoiceMatters.com, PGW has originally proposed that 70% of the costs of the account number look-up mechanism be recovered through an administrative discount on the purchase of receivables, "since such a percentage would encourage NGSs [retail suppliers] that participate in PGW's POR program to use the mechanism and to recognize the fact that the mechanism is intended to help suppliers in enrolling residential and small commercial customers."
The PUC, however, rejected the use of the POR discount for cost recovery
"[U]pon examination, PGW's nascent POR program indicates that it is doubtful that the program can currently absorb costs of this magnitude, without raising POR discount rates to levels that could threaten the viability of the POR program itself," PUC Vice Chairman Andrew Place has said in a July motion adopted by the PUC, which was later memorialized in an order.
In its updated compliance plan, PGW proposed to recover all of its costs to implement its account number access mechanism through the existing Restructuring and Consumer Education Surcharge funded by all PGW firm ratepayers. PGW intends to rely fully on the surcharge and to eliminate any reliance on the POR administrative discount as a methodology for recovering applicable costs.
The PUC approved this updated cost recovery plan
PGW has stated that it will have its look-up mechanism in place and operational by, at the latest, December 31, 2016
The PUC had previously directed utilities to implement, and established major design parameters for, remote account number access mechanisms, which will allow retail suppliers to obtain a customer's account number in situations where the customer does not have their bill handy (i.e. shopping mall kiosks, etc.).
Click here for background on how the mechanisms will work
Docket No. M-2015-2468991
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October 27, 2016
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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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