Maryland Staff Proposes Large Hike in BGE POR Discount Rate

Maryland PSC Staff have recommended a large increase in the Baltimore Gas & Electric purchase of receivables discount rate for residential natural gas customers.

Specifically, Staff has recommended setting BGE's residential natural gas discount rate at 1.7988%, and BGE's General Service natural gas discount rate at 0%.

The current residential natural gas POR discount rate is 0%.

Staff's recommended modifications are consistent with current operation of the tariffed POR calculation mechanism and Commission precedent.

BGE has proposed eliminating late payment charge revenues as an offset to the POR discount rate.

While Staff has, "previously noted this concern with respect to the inclusion of LPCs [late payment charges] in the calculation of the Discount Rate," and said BGE's position "may have merit," Staff noted that under current Commission precedent with respect to this issue, "it is settled that the inclusion of late-payment revenues in the calculation of the POR Discount Rate is appropriate."