Archive

Daily Email

Events

 

 

 

About/Contact

Search

Regulator Issues Order On Purchase Of Receivables (POR) Discount Rates

February 10, 2022

Email This Story
Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

The Massachusetts DPU, at both Eversource (Nstar, East & West) and National Grid, has ordered that the currently effective purchase of receivables discount rates (standard complete billing percentages or SCBPs) shall remain in effect until the Department orders otherwise

The DPU had in May 2021 ordered that the then-current POR discount rates be maintained until further order of the DPU, but since such time the utilities had filed proposals addressing the discount rates. The DPU's latest order is made in consideration of such proposals

Specifically, Nstar had proposed that the Department keep in place the current SCBPs, and investigate and reconcile the actual 2021 and 2022 SCBPs and payment periods as part of its POR filing to be submitted to the Department on or about March 15, 2023.

The rationale for such approach is that, while the pandemic-related shut-off moratorium was lifted in July 2021, there will not have been 12 full months since the moratorium was lifted at the time of the regular annual update to the POR discount rates to be filed in March 2022 (uncollectibles are part of the POR discount calculation)

National Grid had also proposed maintaining the current POR discount, but did propose to file its regular March 2022 POR update, and would make appropriate recommendations at such time based on the data

Both utilities noted that uncollectibles data may not be reliable even after twelve months, due to the lingering effects of the shut-off moratorium.

While the DPU did maintain the existing POR discount rates until further order, it agreed with a proposal from the Retail Energy Supply Association that Nstar still be required to file the information included in their standard annual POR discount calculation in March 2022, as RESA said this may provide insights on the current trends. As noted above, National Grid had already proposed to make such a filing in March 2022 and the DPU agreed with this approach.

In such March 2022 filings, the DPU noted that the utilities may also propose alternative SCBPs and payment periods, based on the data available at that time

Specifically, the DPU maintained the following existing POR discounts

Nstar - East & West 
POR Discount
Existing, Continuing Effective May 1, 2021
              Residential  Commercial  Industrial
Total            1.69%       0.24%       0.11%





National Grid
POR Discount
Existing, Continuing Effective May 1, 2021
Total            3.11%       1.35%       0.12%

DPU 21-POR-02 et al.

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
NEW! -- Energy Pricing Analyst -- Retail Supplier
NEW! -- Digital Marketing Manager -- Energy Marketer

Email This Story

HOME

Copyright 2010-21 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.

 

Archive

Daily Email

Events

 

 

 

About/Contact

Search