Pepco Files Discount Rates for New D.C. Purchase of Receivables Program, Will Eliminate Supplier Consolidated Billing

Pepco has filed with the District of Columbia PSC discount rates for Pepco's new purchase of receivables program, which Pepco is scheduled to implement on October 7, 2013.

Pepco has proposed discount rates as follows, by SOS, or market-priced service, rate schedule:

R, AE, R-TM                                    1.3737%
RAD, RAD-AE                                    1.7598%
GS-LV ND, T, SL, TS, TN (SOS)                  1.3296%
GS-LV, GS 3A, GT LV, GT 3A, GT 3B, RT (SOS)    0.2083%
GSLV-ND, GS-LV, GS 3A, GT LV, GT 3A, 
    T, SL, TS (Market-Priced Service)          0.0130%

The discount rates above include a class-specific uncollectibles discount, a Program Development and Operation Cost discount of 0.0130%, a risk factor of 0%, and a cash working capital discount of 0%.

Under Pepco's transition plan, all non-current balances as of the approved effective date for POR will be billed by Pepco for 90 days. Any amounts collected as a result of these billings will be submitted to suppliers. After 90 days, all non-current balances that have not been collected will be returned to suppliers for collection.

Effective with 810 charges received after October 4, 2013, Pepco will begin purchasing the current balance with each bill. Suppliers will receive the EDI 820 payment transaction and the accompanying ACH payment approximately 21 to 25 days after the bill is issued.

Pepco's proposed tariff changes also appear to include the removal of the option for supplier consolidated billing, and we do not see it added elsewhere in the tariff (e.g. it was not moved to a new section).

Along with the removal of supplier consolidated billing, Pepco would eliminate the current monthly billing charge of $0.62 per residential customer and $0.75 per non-residential customer for utility consolidated bills rendered by Pepco.

FC 1085