Pa. Utility Files To Recover Costs of Retail Supplier Account Number Look-Up Tool Via Delivery Rates, Not POR Discount

In compliance with a Pennsylvania PUC directive, Philadelphia Gas Works has filed an updated plan to implement a remote account number look-up mechanism which does not recover costs through its purchase of receivables discount rate, as PGW proposed to recover implementation costs through a delivery charge.

As first reported by EnergyChoiceMatters.com, PGW proposed that 70% of the costs of the account number look-up mechanism be recovered through an administrative discount on the purchase of receivables, "since such a percentage would encourage NGSs [retail suppliers] 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 has said in a July motion adopted by the PUC, which was later memorialized in an order.

In its updated compliance plan, PGW is proposing to recover all of its costs to implement its account number access mechanism through the existing Restructuring and Consumer Education Surcharge funded by all PGW firm ratepayers. PGW intends to rely fully on the surcharge and to eliminate any reliance on the POR administrative discount as a methodology for recovering applicable costs.

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.).

Click here for background on how the mechanisms will work

Docket No. M-2015-2468991