Delmarva, Suppliers See No Barrier To Purchase of Receivables Implementation in Delaware, Proposal To Be Filed

Delmarva Power and retail suppliers agreed during a workshop yesterday that there are no barriers to implementing purchase of receivables in Delaware, though consumer advocates expressed reservations

Delmarva and the Retail Energy Supply Association had some time ago reached consensus on most elements of a POR program. However, such a proposal was not brought before the Commission because of implementation of a new billing system at Delmarva, and the desire not to expend funds implementing POR onto a legacy billing system when additional funds would be needed to conform the new system to POR as well. Now that the new billing system has been implemented, POR can be implemented without having to pay for implementation twice.

Additionally, in their prior accord, Delmarva and RESA did not reach consensus on the treatment of revenues from late payment fees. Delmarva favors using such fees to offset costs embedded in rates, while RESA believes such revenues should be used to offset uncollectibles (as is done in Maryland). Delmarva and RESA agree that the PSC should adjudicate this question, and any other potential elements which present themselves on which consensus cannot be reached

During the workshop, it was discussed that to move forward with POR, one of the parties, Delmarva or RESA, would present a specific POR program for PSC consideration, along with a request for the PSC to rule on non-consensus items such as late payment revenues.

Consumer advocates, however, expressed reservations with moving forward with POR prior to resolution of long-pending consumer protection changes under Regulation Docket 49

Delmarva could not estimate how long it would take to implement POR once approved

More broadly concerning the working group to improve the Delaware retail market, PSC Staff indicated that it intended to produce a draft report for stakeholder comment by November 13.