Utility Files POR Implementation Plan, Updates Implementation Costs, Timeline

Washington Gas Light has filed with the District of Columbia PSC a proposed plan for implementing purchase of receivables.

As first reported by EnergyChoiceMatters.com (click here), the D.C. PSC last month directed WGL to implement POR and set forth several major design parameters

The discount rate will include the following components: Bad Debt Expense, Implementation Costs, Incremental Collection Costs, Cash Working Capital Costs, Risk Factor, Reconciliation Factor, and Late Payment Revenues

The Bad Debt Expense components will be calculated separately for residential and non-residential customer groups. "The percentage applied in the POR discount rate will be updated on an annual basis and is currently calculated as 1.795% in Formal Case No. 1137 [WGL's rate case]," WGL stated in its implementation plan

WGL reported that it expects POR implementation costs to be approximately $689,000.

WGL reported the POR cash working capital requirement as $526,549, based on data as of September 30, 2015

WGL anticipates the POR program will be available to suppliers within approximately 7 to 9 months of the Commission's final order approving the POR Implementation Plan.

WGL also proposed a change in the enrollment timelines and procedures (moving to a first-in mechanism) due to the increase in shopping expected with POR

Currently, for enrollments, the PSC's rules provide that, "By the ninth (9th) calendar Day of the month (or next Business Day, if the ninth day falls on a holiday or weekend), each Energy Supplier shall provide to the Natural Gas Utility a list of Customers to be supplied by that Energy Supplier beginning with the Customer's Meter read date the following month."

WGL proposes to change this mechanism so that it will instead process an electronic transaction for enrollment from a CSP [competitive service provider] to be effective on the customer's next scheduled meter reading date, except that, an electronic transaction for enrollment from a CSP that is received by Washington Gas less than seven (7) days before the customer's next scheduled meter reading date will take effect on the customer's subsequent scheduled meter reading date.

Washington Gas will drop a customer from its current CSP when another CSP enrolls the customer.

"Without this change in regulation, customer enrollments sent by CSPs may be delayed an additional month. Currently, the customer must be dropped by the incumbent CSP in order for a new enrollment to be processed. Otherwise, the enrollment will not occur and the CSP will have to resubmit the enrollment and possibly have to wait until the next month causing a delay for the customer and CSP. With the implementation of POR, an influx of new enrollments is anticipated; therefore, the enrollment process should be 'first in.' This means an enrollment will be processed and if the customer is currently with a CSP he/she will be switched from that CSP with the 'new' enrollment," WGL said

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