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RESA: PSC Should Direct Utilities To Develop Retail Supplier-Specific POR Discount Rates
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The Retail Energy Supply Association has endorsed, for the District of Columbia utilities, purchase of receivables (POR) discount rates specific to each retail supplier, as RESA requested that the D.C. PSC direct Pepco and Washington Gas Light to design such, with stakeholder input via a technical conference
RESA's comments came in a previously reported investigation by the PSC into the POR programs
RESA said that the utilities should report any system changes needed to
implement supplier-specific POR discount rates, a timeline for implementation, and estimated costs
RESA said, "The POR programs, which have existed since 2013 for Pepco and 2018 for WGL, have
evolved to the point where each supplier should have its own discount rate, ensuring proper cost-causation allocation and preventing cross-subsidization."
RESA notably said, "The POR discount rate is a rate charged by the utilities
and paid by suppliers and, therefore, must be found to be just and reasonable."
RESA said, "Diligent suppliers with low
residential uncollectibles pay more than their actual uncollectibles and therefore subsidize suppliers with higher uncollectibles. Conversely, a supplier with higher residential uncollectibles
increases the utility’s costs but pays less than the utility’s cost to serve the supplier’s customers."
Addressing other POR matters, RESA suggested consideration of a two-year fixed POR discount, instead of an annual reset.
As previously reported, the D.C. POR programs have significant residential uncollectibles balances which have resulted in discount rates from 7% to 11%. As previously reported, the PSC is reviewing, among other options, a potential longer amortization period to address the uncollectibles balances
Of a two-year POR discount rate, RESA said, "This may present the same cost recovery risks as simply amortizing a significant under-collection, but it will preserve resources and increase rate certainty for retail suppliers making offers in the District. Significant movement in the residential discount rate during the time that a customer is under a fixed price contract increases price risk to retail suppliers."
RESA opposed, as unsupported, Pepco's proposal to cease using late fee revenue as an offset to POR uncollectibles (or Pepco's alternative of implementing a collections and administrative cost component to the POR discount)
Cases PEPPOR-2025-01, WGPOR-2025-01
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RESA: POR Discount Must Be "Just and Reasonable"
February 23, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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