Utility Reports Estimated Costs, Timeline For Implementing Tiered Purchase Of Receivables Discount Rates, Cost Assignment To Retail Suppliers

Pepco in the District of Columbia in a recent presentation provided an estimate of the costs and timelines to implement tiered purchase of receivables (POR) discount rates, a concept which the D.C. PSC has generally endorsed and which the PSC is further exploring

As first reported by EnergyChoiceMatters.com, the DC PSC in a prior POR order had generally embraced the use of multiple discount rates for residential POR, to be based on the uncollectibles of a retail supplier's customers, though the PSC did not adopt a final policy in such prior order, and instead directed consideration in a technical conference and related process

At a technical conference last week, WGL Energy offered a proposal for a multi-tiered POR discount rate (see full details here)

Pepco, in a presentation, listed a "preliminary estimate" for tiered POR discount rate implementation as $2.5 million, with the planning range being +/- 100%, "reflecting the preliminary stage of scope development".

Pepco proposes to assign implementation and ongoing administrative costs of the modified POR mechanism to, "the retail suppliers benefiting from the multi-tiered framework, with no allocation to distribution or SOS ratepayers."

Pepco preliminarily estimated an approximately 9-month implementation timeline for tiered POR discount rates, following final Commission direction and project authorization. A final timeline depends on final scope, resource availability, and required approvals, Pepco said

PEPPOR-2026-01