PPL Electric Files to Increase Purchase of Receivables Discount Rate

PPL Electric Utilities would modify its purchase of receivables discount rate under a base rate case filed with the Pennsylvania PUC (R-2012-2290597).

Under PPL's proposal, the discount rate for the residential customer class would be 2.23%, which would be solely for uncollectibles. The current residential discount rate is 1.85%, which includes uncollectibles and an administrative cost factor.

The proposed discount rate for the small commercial and industrial customer class is 0.23%, solely reflecting uncollectibles.

PPL proposes to set the POR administrative discount factor to 0%.

"Under its current POR Program, the Company recovers its POR administrative costs as a percentage of EGSs' supply charges to shopping customers. Therefore, in order to develop a POR administrative percentage factor, the Company must estimate: (1) its POR administrative costs, (2) shopping levels, (3) POR Program participation levels, and (4) average competitive supply rates. However, based on its limited experience regarding the operation of its current POR Program, the Company has not yet conducted a comprehensive analysis of that program, including the applicable administration-related costs. As a result, PPL Electric is, at this time, reducing the current POR administrative percentage factor of 0.05% to 0.00%."

The merchant function charges would also be updated with the same uncollectible percentages as used in the POR discount.