Energy Choice
                            

Matters

New POR Rates To Jump To 2% and 6%

Utilities Seeking To Recover Accelerated Switching Costs In Purchase of Receivables Discount

April 21, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Pepco and Delmarva in Maryland are seeking to recover the costs of implementing accelerated switching in their purchase of receivables discount rates, and have filed proposed new rates to be effective June 1, 2017

At Pepco-MD, for residential customers, the component of the POR discount to recover accelerated switching costs would be 0.17%. At Delmarva-MD, the component of the POR discount to recover accelerated switching costs would be 0.10%.

Pepco's current and proposed total POR discount rates are below:

                               Proposed
                 Current     June 1, 2017
Residential      1.5449%       2.4181%
Type I           0.0000%       0.0000%
Type II          0.0000%       0.0000%
Hourly           0.0000%       0.0000%

Net uncollectibles at Pepco of 1.7% make up the largest factor of the total residential discount. A reconciliation factor of 0.5% is also driving the increase

Delmarva's current and proposed total POR discount rates are below:

                               Proposed
                 Current     June 1, 2017
Residential      1.0902%        6.5474%
Type I           0.0000%        0.0000%
Type II          0.0000%        0.0000%
Hourly           0.0000%        0.0000%

The large jump in the Delmarva residential discount is driven by a reconciliation component equaling 2.9%, and a net uncollectibles component equal to 3.6%

The zero percent discount rates listed above reflect the "zeroing out" of negative discounts that otherwise result from the POR discount calculation

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