Pa. PUC Rejects Recovery of Costs in POR Discount That Would Threaten "Viability" of Program

The Pennsylvania PUC has rejected Philadelphia Gas Works' implementation plan to implement a remote account number access mechanism, finding that PGW's proposal to recover a portion of costs of the program via the purchase of receivables discount would threaten the viability of the POR program.

The PUC had previously directed utilities to implement, and established major design parameters for, remote account number access mechanisms, which will allow retail suppliers to obtain a customer's account number in situations where the customer does not have their bill handy (i.e. shopping mall kiosks, etc.).

As first reported by EnergyChoiceMatters.com, PGW proposed that 70% of the costs of the program be recovered through an administrative discount on the purchase of receivables, "since such a percentage would encourage NGSs that participate in PGW’s POR program to use the mechanism and to recognize the fact that the mechanism is intended to help suppliers in enrolling residential and small commercial customers."

"[U]pon examination, PGW's nascent POR program indicates that it is doubtful that the program can currently absorb costs of this magnitude, without raising POR discount rates to levels that could threaten the viability of the POR program itself," PUC Vice Chairman Andrew Place said in a motion adopted by the PUC

"I suggest that PGW submit a cost recovery that is less reliant on POR or that the Company propose an entirely different method of cost recovery," Place said in the motion adopted by the PUC, as the PUC rejected PGW's implementation plan cost recovery mechanism as filed.