D.C. PSC Opens Inquiry into Purchase of Receivables

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The District of Columbia PSC has issued a Notice Of Inquiry (FC 1085) into the adequacy of the current method of allocating customer payments on utility consolidated bills between Pepco and competitive electric suppliers, and whether the Commission should "permit or require" Purchase of Receivables.

The Notice Of Inquiry follows requests by Clean Currents and the National Energy Marketers Association to implement POR in the District, given the likely synergies stemming from its use by Pepco in Maryland (1/17). As only noted in Matters, PSC Chairman Betty Ann Kane had told attendees at a recent NEM conference that the PSC would be addressing these requests shortly (4/27).

Currently, pursuant to 15 DCMR Sec. 305.4, customer payments are applied in the following order: "first to the applicable Utility for arrears for Commission regulated Charges, oldest item first; next to arrears for non-regulated Charges (i.e., Energy Supplier Charges for gas supply or electricity); next to the Utility for current Commission-regulated Charges; finally, to current non-regulated Charges."

The instant Notice Of Inquiry is limited to electric service.

The PSC said that it, "is aware that a number of other states, including Maryland, have adopted a Purchase of Receivables ('POR') program that permits or requires the electric utility to purchase the receivables of a retail electric supplier at a discount rate equal to the utility's actual uncollectible rate."

The Commissions sought comment on whether, and to what extent, the existing rules should be revised to permit or require POR for retail electric suppliers. The PSC did not direct comments on any specific issues or questions.