ComEd Flat Per Bill POR Discount Insufficient to Recover Annualized Costs

The flat per-bill discount applied to purchased receivables at Commonwealth Edison was insufficient to recover annualized costs associated with the POR portion of the Purchase of Receivables and Consolidated Billing program in 2011, ComEd said in an annual report on the POR program.

In particular, the revenues received from the 50 cent per bill discount were $456,067, while the 2011 annualized costs of the program were $568,858.

"Although the revenue received was for a nine-month period, the annualized amount is not sufficient to recover both the POR annualized costs and the Consolidated Billing annualized costs. Therefore, both the CB Adjustment [Consolidated Billing Adjustment] and $0.50 per bill charges will be continued," ComEd said.

The Consolidated Billing Adjustment is 4 cents per bill applied to residential and commercial customers with demands under 400 kW regardless of shopping status.

The Consolidated Billing Adjustment recovered $1,445,608 in 2011. ComEd in March 2011 calculated that the carrying costs to be recovered from April 2011 through December 2013 under the Consolidated Billing Adjustment were $5,408,573. ComEd, "believes that the current CB adjustment is adequately recovering the carrying costs as calculated in the March 2011 submission."

ComEd said that 21 retail suppliers took service under Rider PORCB in 2011.