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Pa. PUC Approves Settlement Under Which Utility Will Remove Uncollectibles From POR Discount, Transfer To Delivery Surcharge

Order Adopts Longer-Term Contracts for Residential, Small C&I Default Service For Price Stability At EDC

Utility To Expand Hourly Pricing For Default Service

December 23, 2016

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

The Pennsylvania PUC has adopted without modification a non-unanimous settlement concerning Duquesne Light's default service program for the period beginning June 1, 2017

Under the adopted non-unanimous settlement, the utility will 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 approved settlement, Duquesne Light will, effective June 1, 2017, eliminate the uncollectible accounts component of the POR discounts for retail suppliers.

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

As previously reported, the settlement, now approved by the PUC, adopted Duquesne Light's proposed procurements for each customer class without modification, covering the period June 1, 2017 to May 31, 2021

Currently, for residential (and lighting) and small C&I customers (under 25 kW), Duquesne Light exclusively relies on 12-month fixed price full requirements contracts to serve default service load. The contracts are laddered such that 50% of default service load is procured at one time, with 50% of the supply replaced every six months

Under the adopted settlement, Duquesne Light will transition residential (and lighting) and small C&I customers to a laddered portfolio consisting of 12-month fixed price full requirements contracts (50%), and 24-month fixed price full requirements contracts (50%)

Duquesne Light had originally said that the addition of 24-month contracts would provide, "greater price stability."

Residential and small C&I contracts will be procured within three months before the commencement of their delivery periods

For specifics on the laddering and delivery start dates, click here for a chart of the default service products

Residential (and lighting) and small C&I Prices to Compare will be fixed for six months, with semi-annual reconciliations

For medium C&I customers (initially 25 kW to 300 kW with a future lowering of the high-cutoff to 200 kW), Duquesne Light will continue to serve such customers on non-laddered three-month full requirements supply contracts

Large C&I customers will be served on hourly priced default service.

Duquesne Light will lower the hourly pricing threshold to 200 kW from 300 kW effective June 1, 2019

Duquesne Light will implement changes in the administration of the hourly priced default service program such that it bids out the right to serve hourly priced default service customers to competitive suppliers, under 12-month terms. Hourly priced customers will be charged day-ahead hourly price, plus pass-throughs of capacity and ancillaries and various adders.

Docket P-2016-2543140

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