Columbia Lowers POR Discount Rate

Columbia Gas of Pennsylvania, Inc. has informed the PUC that, effective December 30, 2011, Columbia will cease recovery of the administrative adder included in its Purchase of Receivables discount rate.

This will reduce Columbia's POR discount rate from 2.11% to 1.52%.

In 2010, a settlement had established the administrative adder as 0.59%, with the adder to be eliminated once actual costs of establishing the revised POR program were recovered.

"Columbia has tracked the costs it has incurred to implement the revised POR program. To date, Columbia has incurred approximately $63,200 in costs. Columbia anticipates a small amount of additional costs, approximately $1,500, to implement the final stage of the revised POR Program which is scheduled to take effect in March 2012."

"Columbia has recovered approximately $57,100 under the administrative adder through November 2011. Columbia projects to recover approximately $50,000 [sic] through the administrative adder through the December 2011 billing cycle, which will be completed on December 29, 2011. As a result, Columbia will have received sufficient revenues to recover its anticipated actual costs to implement the revised POR program, and thus is eliminating the administrative rider."

Columbia reserves the right to seek to re-institute the administrative adder if additional, unanticipated POR programming costs are incurred.