Pepco To File To Include Late Payment Revenues As Offset To POR Discount Rate In February

Pepco notified the District of Columbia PSC that it will file for Commission approval of an updated purchase of receivables discount rate, including a proxy rate for late payment revenues, in February 2015.

The D.C. PSC had previously directed Pepco to include late payment revenues (LPRs) in the calculation of the discount rate applicable to the POR program beginning January 1, 2015 (as an offset to uncollectibles), providing that if that date cannot be met, Pepco would notify and explain the reasons for the change.

Pepco said that its new customer relationship management and billing system, unlike the current system, will permit Pepco to begin collecting and accounting for LPRs. This feature will allow LPRs to be included in the discount rate.

However, Pepco informed the PSC that the new billing system will not be in place until January 5, 2015.

Pepco said that making the filing to include LPRs in the POR discount rate in February, "will allow Pepco to include a reasonable proxy LPR value in the Discount Rate and will coincide with a similar filing to be made by Pepco-Maryland."