NEM Urges D.C. PSC to Implement POR, Cites Synergy with Pepco's Use in Maryland

EnergyChoiceMatters.com

The introduction of Purchase of Receivables by Pepco in Maryland, "represents an excellent opportunity for Pepco to leverage POR system implementation costs as well as experience," in extending the POR program to the District of Columbia, the National Energy Marketers Association said in comments to the D.C. PSC.

NEM was supporting Clean Currents' request for the PSC to implement a POR program, as first reported by Matters (see 1/17).

Describing POR as, "perhaps the most determinative factor in supporting retail market development," NEM cited the experience at PPL, New York, and the Ohio gas market as showing the value of POR. NEM further noted the recent introduction of POR at ComEd and the Maryland electric utilities. As only noted in Matters, with the introduction of POR, Baltimore Gas & Electric residential migration has grown to 17.2% of accounts as of January 2011, versus 4.9% a year ago, while Pepco migration has grown to 14.3% of accounts, versus 8.5% a year ago (see 2/21)

Furthermore, "[w]hen utilities offer to purchase receivables, this one rule change has a significant impact on the cost to serve consumers that may otherwise be uneconomic to serve in a competitive marketplace," NEM said.

"POR enhances the ability of the competitive marketplace to serve credit-challenged customers," NEM added.

NEM's letter was filed by the Secretary in Case EA10-8, the electric licensing docket of Clean Currents Energy Services, which is where Clean Currents' original POR letter was also filed.