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PSC Takes Under Advisement Matters Related To End Of POR; New Discounts Approved
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The Maryland PSC has approved new purchase of receivables discount rates at several utilities, but took under advisement, for disposition in a future order, issues concerning the end of residential POR, including the use of any over-collection balance under residential POR and/or the assignment of any reconciliation balance (under- or over-collection) among retail suppliers
The PSC approved new POR discounts at Baltimore Gas & Electric (both electric and gas) and at Potomac Edison
As previously reported, BGE proposed that any reconciliation balance under residential POR after POR's termination (accounted for periodically through December 2026, which is 12 months after the end of residential UCB with POR in December 2025, to reflect the time it takes for uncollectibles to be written-off) be socialized among all retail suppliers who served residential customers in 2025 based upon each retail supplier’s relative share of the electric (or gas as applicable) residential receivables purchased over the entirety of calendar year 2025 (reconciliations would be specific to electric service and gas service).
Potomac Edison had proposed that, if the final residential POR deferral balance at PE is in an over-recovered position on December 31, 2026, PE would use those funds to help offset the costs that PE has incurred for the development of the Supplier Consolidated Billing (SCB) system, which suppliers are required to pay at a charge of $2.00 per bill once implemented
Potomac Edison proposed that, if the residential POR deferral balance moves into an under-recovered position during 2026, PE would begin billing retail suppliers for their supplier-specific uncollectible expense, since PE tracks uncollectibles by supplier.
The Retail Energy Supply Association said that the PSC did not have to judge the issues related to end-of-POR balances at this time, and raised several concerns with the utilities' proposals.
RESA noted that not all retail suppliers sought implementation of SCB, and said that suppliers which did not intend to use SCB should not be charged for SCB
RESA noted that while a utility, on a system-wide basis, may have an over-recovery (or under-collection) under residential POR, some individual suppliers may have customers with no uncollectibles, while other individual suppliers may have customers with uncollectibles (and unrecovered costs), despite the POR program, as a whole, being in an over-collected position
RESA noted that, "PE can track uncollectibles by supplier, which appears reasonable and would seem to allow a supplier whose customers had paid in full to avoid any charges."
RESA suggested that BGE also track uncollectibles by supplier
BGE does not currently track uncollectibles by supplier and noted that, at POR implementation, the program was specifically designed to not have supplier-specific discounts (and thus there was no need for supplier-specific tracking)
In taking the matter under advisement, PSC Chair Frederick Hoover said that he wanted to first have the input of the two Commissioners who were not present at today's administrative meeting, including specifically Commissioner Odogwu Obi Linton, who Hoover noted has dealt with POR for decades in Linton's time at the PSC as a Commissioner as well as a PSC Staff member
While the PSC left the question of how to treat final residential POR balances to a future order, the PSC approved the following new POR discount rates. The residential POR discounts are effective through the end of the residential POR program at the end of December 2025
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May 28, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
BGE Electric
Approved
Current 6/1/25
Discount Discount
Residential 2.3921% 3.5685%
Type I 0.4623% 0.0406%
Type II 0.0000% 0.0000%
Hourly 0.0000% 0.0000%
BGE Gas
Approved
Current 6/1/25
Discount Discount
Residential (Sch. D) 3.3389% 4.0205%
General Service (Sch. C) 0.0000% 0.0000%
Potomac Edison-Maryland
Approved
Current 6/1/25
Discount Discount
Residential 4.2722% 0.0000%
Type I 0.0000% 0.0000%
Type II 0.0000% 0.0000%
Hourly 0.0000% 0.0000%
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