Maryland Approves New POR Discount Rates, Directs Pepco to Start Using Late Payment Fees As Offset

The Maryland PSC has approved new electric and natural gas purchase of receivables discount rates, effective June 1, 2014.

In doing so, the PSC ordered that Pepco begin applying late payment fee revenues as an offset to the POR discount beginning January 1, 2015, or report to the Commission why such date is no longer feasible as it approaches and Pepco implements its new billing system.

The PSC also directed all of the utilities to follow the practice of BGE and to use the customer deposit interest rate to calculate interest on POR over- and under-collections, rather than using the utility's approved rate of return.

Baltimore Gas & Electric's updated electric POR discount rates, effective June 1, 2014, are as follows:

             Current Discount      New Discount
Residential      0.1352%             0.9475%
Type I           0.0000%             0.0000%
Type II          0.0000%             0.0000%
Hourly           0.0000%             0.3564%

Pepco's updated Maryland POR discount rates, effective June 1, 2014, are as follows:

             Current Discount      New Discount
Residential      0.2543%             1.1687%
Type I           0.2704%             0.6327%
Type II          0.0000%             0.0926%
Hourly           0.6280%             0.0000%

Delmarva's updated Maryland POR discount rates, effective June 1, 2014, are as follows:

             Current Discount      New Discount
Residential      0.0000%             0.0000%
Type I           0.0000%             0.0000%
Type II          0.1987%             0.0000%
Hourly           0.0000%             0.0000%

Potomac Edison's updated POR discount rates are as follows, effective June 1:

             Current Discount      New Discount
Residential      0.0772%             0.0000%
Type I           0.0000%             0.0000%
Type II          0.1825%             0.0000%
Hourly           0.0000%             0.0000%

BGE's natural gas updated POR discount rates are as follows, effective June 1:

                         Current Discount   New Discount
Residential (Sch. D)        1.8047%           1.4337%
General Service (Sch. C)    0.0000%           0.0000%