PUC Approves Higher Discount Rates for PPL Purchase of Receivables

The Pennsylvania PUC approved without modification a rate case settlement at PPL Electric Utilities which, among other things, addresses the design of the purchase of receivables program and discount rates

Initially in its filed rate case, PPL was seeking, for Small C&I customers, to set both the bypassable Merchant Function Charge and the POR discount to zero, with the recovery of such electric supply uncollectible costs accomplished through base distribution rates.

The approved settlement drops PPL's alterations to the MFC and POR program for the company's small business customers, and retains the single uncollectibles rate that applies to both the MFC and the POR discount for Small C&I customers.

Additionally, PPL Electric's proposal to annually adjust the uncollectible percentage for both the MFC and POR is withdrawn under the adopted settlement.

Per the approved settlement, the Residential uncollectible percentage will be set at 2.31% for both the MFC and POR, and the Small C&I uncollectible percentage will be set at 0.23% for both the MFC and POR

The current uncollectible percentages for POR and the MFCs are 1.80% for Residential customers and 0.10% for Small C&I customers.

The PUC's order adopting the settlement states that tariffs implementing the settlement's terms shall be effective for service rendered on and after January 1, 2016.

R-2015-2469275