Utilities Slash Proposed POR Discount Rate Hikes, New Rate Now Under 1.5%

Pepco and Delmarva have filed with the Maryland PSC revised proposals to update their purchase of receivables discount rates, with a proposed new effective date of July 5, 2017

The new proposals dramatically reduce the initially requested increase in residential POR discounts at both EDCs.

At Pepco, the change versus the initial proposal results from modifying the discount to use a more current forecast of write-offs as opposed to using the annual average which included some months with higher than normal write off activity. Delmarva made this same change, but also proposes to amortize the uncollectible write-offs for a three-year period

The newly proposed discounts, compared to current rates and the earlier proposals, are below

Pepco-MD POR Discount:
                       Earlier   New Proposal
             Current   Proposal   (7/5/17)
Residential  1.5449%   2.4181%   1.2709%
Type I       0.0000%   0.0000%   0.0000%
Type II      0.0000%   0.0000%   0.0000%
Hourly       0.0000%   0.0000%   0.0000%



Delmarva-MD POR Discount:
                       Earlier   New Proposal
             Current   Proposal   (7/5/17)
Residential  1.0902%   6.5474%   2.6341%
Type I       0.0000%   0.0000%   0.0000%
Type II      0.0000%   0.0000%   0.0000%
Hourly       0.0000%   0.0000%   0.0000%