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RESA Seeks Extension Of New POR Program's Implementation Date To Continue Discussions Concerning Discount Rate (Rate Proposed To Be 7%)

June 8, 2018

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

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The Retail Energy Supply Association asked the District of Columbia PSC to extend the implementation date of Washington Gas Light Company’s new Purchase of Receivables (POR) program, by six weeks, to August 27, 2018, to continue discussions concerning the discount rate which, as currently calculated, RESA believes will discourage participation in POR

On October 19, 2017, the PSC issued Order No. 19140 approving a POR program for natural gas suppliers and their customers in the District, and directed Washington Gas to implement a POR program as soon as possible but no later than nine months from the date of such order. RESA noted that, accordingly, implementation of Washington Gas’s POR program is expected to occur no later than July 19, 2018.

On March 30, 2018, Washington Gas filed a proposed discount rate calculation with the Commission.

Under WGL's filing, the POR discount rate for WGL D.C. customers would be as follows:

• Residential: 7.4743%

• Commercial: 1.9157%

On April 23, 2018, RESA filed a letter in response to Washington Gas’s proposed tariffs. In the letter, RESA expressed concern that the proposed discount rates filed by Washington Gas on March 30, 2018, are of such a high level that, if implemented, would have serious negative operating impacts on existing retail suppliers serving District customers and thwart retail competition going forward, to the detriment of customers who will have fewer options from which to choose. RESA is also concerned that if the discount rates are too high, retail suppliers will opt not to participate in the POR program and Washington Gas will risk not recovering its implementation costs. "In sum, the proposed discount rates have yielded percentages that, if implemented, will not promote customer choice, will not increase competition, and will not reduce commodity prices as envisioned in Order No. 18798," RESA has said

In its April 23, 2018 letter, RESA indicated that it had reached out to Washington Gas to discuss the proposed discount rates and would welcome discussions with other stakeholders. Since filing its letter, RESA has engaged in discussions with Washington Gas and individual natural gas suppliers about the proposed discount rates.

"Discussions thus far have led to some promising alternatives that require further vetting. RESA believes additional time is likely to yield a beneficial outcome," RESA said

"With this Request, RESA requests to extend the July 19, 2018 POR implementation date by six weeks to continue those discussions and to include other stakeholders, including the Office of People’s Counsel, in the discussions," RESA said

"RESA requests an additional six weeks’ time to discuss with stakeholders the discount rate level to ensure that the POR program attains its intended goals expressed in Order No. 18798," RESA said

"RESA is authorized to represent that Washington Gas supports a six-week extension as requested to engage in further discussion about the proposed discount rate calculation. RESA is also authorized to represent that the Office of People’s Counsel has agreed to participate in the discussions," RESA said

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