Washington Gas Light Files New Update to POR Discount Rates, Residential Rate Still Approaches 6%

Washington Gas Light has filed updates to its prior proposed increases in the purchase of receivables discount rates with the Maryland PSC, and while the newly updated rates are lower, the residential discount rate which results under the current tariff still approaches 6%

Specifically, WGL has now filed updated POR discount rates as follows:

Residential: 5.57%

Non-residential: 0.13%

An earlier filing had contained the following updated discount rates:

Residential: 6.97%

Non-residential: 0.17%

The reduction versus the earlier filing reflects a decrease in IT implementation costs which need to be recovered.

For comparison, WGL's current discount rates applicable to the purchase of residential and non-residential receivables are 4.39% and 0.83%, respectively.

Again, WGL's latest update to the discount rates reflects the previously directed two-year amortization of IT implementation costs.

If three-year amortization were used, the new discount rates would be 2.55% for residential customers and 0.05% for non-residential customers.

PSC Staff have recommended a four-year amortization of IT implementation costs in order to reduce the discount rates.

If four-year amortization were used, with the updated IT costs, the residential discount rate would be 1.55% and the non-residential discount rate would be 0.02%.

Specific components of the latest discount rate updates can be found in WGL's filing