Purchase Of Receivables (POR) Discounts To Decline At Utility

Fitchburg Gas and Electric d/b/a Unitil has filed with the Massachusetts DPU new Standard Complete Billing Percentages (purchase of receivables (POR) discount rates).

Fitchburg Gas & Electric's proposed new POR discount rates were approved as follows:

Residential
Uncollectible       4.00%
Reconciliation     -1.75%
Total               2.25%



Small/Regular General Service
Uncollectible       0.66%
Reconciliation     -1.14%
Total              -0.48%

FG&E said that the company has made an adjustment of $325,000 to normalize the amount of write-offs used to calculate the proposed uncollectible discount to be effective December 1, 2018. In 2017, the company delayed recording write-offs while implementing a new billing system in July, resulting in a lower level of write-offs. The company proposes to adjust the uncollectible discount by the estimated write-off amount that would have occurred in 2017 in order to provide a better estimated rate and avoid a large undercollection in the reconciliation for December 1, 2018 through November 30, 2019.

For comparison, the current Fitchburg Gas & Electric residential POR discount is 4.39%, and the current Small/Regular General Service POR discount is -0.08%