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Regulator Approves New POR Discount Rates At Two Large Utilities, 3.4% Commercial Discount
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The Massachusetts DPU has approved without modification new standard complete billing percentages (SCBPs), or purchase of receivables (POR) discount rates, to be effective May 1, 2025, at National Grid and Nstar (Eversource)
National Grid's new SCBPs for effect May 1, 2025 are as follows (prior rates provided for comparison):
Nstar's approved new POR discounts, which apply on a consolidated basis (East & West service areas), are as follows:
In approving Nstar's new POR discounts, the DPU also approved a change in the establishment of the average historical payment periods which are used to determine when Nstar issues payment of purchased receivables to suppliers
Under the tariff, payments of the purchased receivables are made consistent with the average payment period of the relevant customer class, unless otherwise ordered by the DPU
Prior to the adopted change, Nstar's western service area (WMA, WMECO) and eastern service area (EMA) utilized different approaches to the setting of the historical payment period
WMA established a single historical payment period which is applied across all receivables regardless of customer class. EMA developed a historical payment period specific to each customer class
For consistency in the POR program, Nstar received approval to adopt the single historical payment period approach in the EMA territory. The WMA and EMA historical payment periods still remain separate.
"[Nstar] received internal feedback from its subject matter experts and external feedback from Competitive Suppliers that having three separate payment periods for EMA was an area of potential improvement. The Company contacted members of the Electronic Business Transactions Working Group, and notified them that the Company was considering the feasibility of harmonizing the EMA POR process so that it aligned with the WMA POR process (i.e., one payment period for all classes). Many suppliers, approximately 75 percent of those who voted on the Company’s proposal, were supportive of this approach," Nstar had said
Specifically, Nstar received approval to set the average historical payment periods, effective May 1, 2025, as follows:
Approved:
EMA (all classes) - 35 Days
WMA (all classes) - 39 Days
For illustrative purposes, Nstar had also calculated the average historical payment periods for each class in EMA (these periods were not approved):
EMA - Illustrative (Not Approved To Be Used)
Residential – 41 Days
Commercial – 30 Days
Industrial – 24 Days
Nstar: Docket 25-POR-02
National Grid: Docket 25-POR-01
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May 1, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
National Grid (MA) SCBPs
Prior 5/1/25
Residential 2.99% 2.68%
Commercial 3.53% 3.39%
Industrial 0.35% 1.02%
Nstar SCBPs (Applicable To All Territories)
Prior 5/1/25
Residential 1.33% 1.55%
Commercial 0.26% 0.65%
Industrial -0.01% 0.41%
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