Utility Files To Implement 7% Purchase of Receivables (POR) Discount Rate

Washington Gas Light recently submitted to the District of Columbia PSC the resulting purchase of receivables discount rate resulting from the calculation methodology previously approved by the PSC for the new WGL POR program

Under WGL's filing, the POR discount rate for WGL D.C. customers would be as follows:

Residential: 7.4743%

Commercial: 1.9157%

The Retail Energy Supply Association said in comments to the PSC on the filed discount rates that, "RESA is concerned that the application of the methodology will yield high proposed POR discount rates that, if implemented, will negatively impact retail natural gas competition in the District."

"More specifically, the proposed discount rates filed on March 30, 2018, would result in discount rates of 7.4743% for residential and 1.9157% for non-residential. Those high rates, if implemented, would have serious negative operating impacts on existing retail suppliers serving District customers and also thwart retail competition going forward, to the detriment of customers who will have fewer options from which to choose," RESA said

"With this in mind, RESA has reached out to WGL to initiate further conversation and perhaps a stakeholder working group to discuss ways to lower the proposed going-in discount rates while at the same time ensuring that WGL obtains full cost recovery. RESA engaged in similar discussions with at least one other utility in the past (in Pennsylvania), with successful results. RESA looks forward to participating in discussions and working with WGL and other stakeholders to implement POR smoothly and in a manner that allows WGL’s POR program to move the retail natural gas market forward and benefit District customers as intended," RESA said