Maryland PSC Affirms Modified Bypassable Adders for SOS Rates, Rejects Need For "Clarification"

The Maryland PSC has issued an order denying rehearing or clarification of its recent order modifying the bypassable electric SOS Administrative Charge at Baltimore Gas & Electric affirming the new amounts for various components of the SOS adder as set in a November order

Click here for the amounts of the SOS adder as set in November (note, BGE has since trued-up some of these components)

Certain parties had sought rehearing by stating that the PSC's discussion in the order, and its statement that it was adopting the argument of one of the parties, was inconsistent with a table in the order setting forth the new SOS Admin. Charge in the order

However, the PSC said that no inconsistency existed and no clarification was needed, affirming the amounts set forth in November.

In their requests for clarification and rehearing, Staff and OPC both suggested that the PSC's November 17 Order gives BGE a return of 1.88 mills/kWh on Residential SOS when in fact the Order separately set the Cash Working Capital Component ('CWC') of the SOS Administrative Charge for Residential Customers to 0.95 mills/kWh and the Return Component of the SOS Administrative Charge for residential customers to 0.93 mills/kWh.

"However, Staff and OPC conflate the two as a single return, when in fact they are stated separately. In doing so, OPC’s filing suggests that BGE is authorized to earn a 22.19 percent return on SOS (a return well above the Company’s overall authorized return)," the PSC said

"In its response, the Company [BGE] states that, on a percentage basis, the return represented by 0.93 mills/kWh authorized in Order No. 87891 reflects a return of about 1.2 percent, not the 22.19 percent yield that OPC suggests. While OPC’s and the Company’s computations are not directly comparable, BGE’s analysis demonstrates to the Commission’s satisfaction that at this time, that the Company is not over-earning on SOS (from any of its customer classes) based on the Administrative Charge authorized in the November 17 Order," the PSC said

"In adopting 0.95 mills/kWh as the Residential CWC rate and 0.93 mills/kWh as the Residential Return rate respectively, the Commission accepted the CWC rate recommended by the Chief PULJ in Proposed Order II and the Return rate recommended by OPC and Staff. These rates, along with the rates adopted for other SOS cost components produce reasonable rates, as demonstrated by the record in this case. The compliance filings submitted by BGE both for Type II and Residential SOS were approved by the Commission as consistent with the November 17 Order," the PSC said

"In considering OPC’s request for rehearing and Staff’s request for clarification, the Commission has carefully reviewed the arguments presented. These arguments are, for the most part, the same arguments made on appeal of the Second Proposed Order and at other stages during the proceedings in this case. The Commission finds no error in fact or law or other reason to require a change or modification to the decision reached in Order No. 87891 and finds no grounds to justify reconsideration of this matter," the PSC said

Case 9221