Maryland PSC Confirms Use of 0% POR Discount Rate Rather than Refunding Monies to Suppliers

The Maryland PSC yesterday established new Purchase of Receivables discount rates at Pepco, Delmarva, and Potomac Edison.

The actual rates were not immediately available, because the PSC accepted Staff's final recommendations which may have differed slightly from preliminary Staff calculations which were made available. Compliance tariffs to be filed by the utilities will contain the rates as approved at the meeting.

What is clear, however, is that for those customer classes for which the normal operation of the POR discount rate methodology would produce a negative discount rate (reflecting over-collection under the prior discount rate and a return of money to suppliers), the PSC ordered that the discount rate shall be set to 0%.

Among those POR discount rates originally proposed to be 0% (due to a negative rate under the standard calculation) were the Pepco residential class, Delmarva Type I class, and Delmarva Hourly class; it was unclear if Staff's adjustments led to any of these rates changing.