BGE Files Corrected POR Discount Rates

Baltimore Gas & Electric filed an errata to one of its proposals for setting the discount rate for the natural gas Purchase of Receivables program.

As only reported by Matters, BGE presented three alternatives to the Commission for the new discount rates (to take effect July 1): (1) continue with the current discount rate calculation methodology; (2) remove late payment charge revenues from the discount rate calculation, or (3) continue including late payment charge revenues in the discount calculation, but add a new credit and collections component to the discount rate to compensate BGE for those costs.

See Matters' earlier story for proposed POR discount rates under each option

BGE's errata relates solely to the third option, and for natural gas service only.

Specifically, under the corrected computation, the credit and collections component for the residential gas discount is 0.7028% (versus the erroneous 0.8047%), and the credit and collections component for the general service natural gas discount is 0.4813% (versus the erroneous 0.5492%).

This results in a proposed new total discount rate, under the credit/collections alternative, for residential gas service of (0.3339%), which would still be set to 0%, versus the original (0.2319%).

For the general service class, the corrected total discount rate is 0.3678%, versus the earlier proposed 0.4357%.

These discount rates, while provided as an alternative by BGE, are not BGE's preference, as BGE prefers to remove late payment fee revenues from the discount rate calculation.