Regulator Approves Consolidation Of Purchase Of Receivables (POR) Discount Rates

The Massachusetts DPU has approved new purchase of receivables discount rates (standard complete billing percentages) at Nstar (Eversource), effective May 1, 2019.

In doing so, the DPU approved Nstar's proposal to consolidate the POR discounts for its east and west (WMECO) service areas, for each customer class, into a single discount per customer class across its entire service area

The adopted May 1, 2019 Nstar Massachusetts POR discounts for all of Nstar's service areas are:

Nstar - East & West, May 1, 2019
              Residential  Commercial  Industrial
Uncollectible    1.22%       0.19%       0.03%
Admin Cost       0.00%       0.00%       0.00%
Reconciliation  -0.28%      -0.07%     [-0.11%]*
Total            0.94%       0.12%       0.03%*

* Pursuant to past practice, Nstar will set the total industrial discount equal to the Uncollectible discount of 0.03%. Rather than incorporating the reconciliation refund amount into the POR discount, Nstar will make a one-time payment to each affected retail supplier serving industrial customers in Nstar's service territory.

For comparison, Nstar's current POR discounts for the East rate zones are:

              Residential  Commercial  Industrial
Uncollectible    1.26%        0.30%       0.18%
Admin Cost       0.00%        0.00%       0.00%
Reconciliation   0.04%        0.10%       0.15%
Total            1.30%        0.40%       0.33%

For comparison, Nstar's current POR discounts for the West (WMECO) rate zone are:

           Residential  Commercial  Industrial  Other
Uncollectible   2.84%       0.14%     0.22%     0.05%
Admin Cost      0.00%       0.00%     0.00%     0.00%
Reconciliation  0.09%       0.01%     0.19%     0.05%
Total           2.93%       0.16%*    0.41%     0.09%*

*Amounts are reproduced [sic] as listed in 
2018 WMECO filing and (for totals) DPU order

D.P.U. 19-POR-2