BGE Proposes Large Increase in Residential POR Discount Rate

Baltimore Gas & Electric has filed updated purchase of receivables discount rates for electric and natural gas service, for the period starting July 1.

Similar to prior years, BGE is proposing to remove revenues received from late payment fees as a POR offset.

With such offset removed, the resulting discount rates are:

Electric
Residential:      0.9148%
Type I:                0%
Type II:               0%
Hourly:                0%


Natural Gas
Residential:      2.8060%
General Service:       0%

Each of the classes with a zero discount rate had a calculation which resulted in a negative discount rate, but was set to zero consistent with PSC precedent.

If late payment revenues were retained as a POR offset, the discount rates would be:

Electric
Residential:      0.1342%
Type I:                0%
Type II:               0%
Hourly:                0%


Natural Gas
Residential:      1.7988%
General Service:       0%

The current residential discount rate for both electric and gas service is 0%.

Additional details on BGE's calculations can be found at the following links:

Electric

Gas