Residential Purchase Of Receivables (POR) Discount Rate To Increase 80%; Commercial POR Discount Doubles

Nstar (Eversource) has filed with the Massachusetts DPU new proposed purchase of receivables discount rates (standard complete billing percentages) to be effective May 1, 2020.

As previously reported, Nstar consolidated its POR discounts into a single customer-specific rate for all of its service areas effective May 1, 2019.

The rates remain subject to DPU approval.

The proposed May 1, 2020 Nstar Massachusetts POR discounts are:

Nstar - East & West, Proposed, May 1, 2020
              Residential  Commercial  Industrial
Uncollectible    1.49%       0.23%       0.10%
Admin Cost       0.00%       0.00%       0.00%
Reconciliation   0.20%       0.01%       0.01%
Total            1.69%       0.24%       0.11%

For comparison, the current 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%        N/A*
Total            0.94%       0.12%       0.03%*

* A reconciliation refund amount was made via a one-time payment to each affected retail supplier serving industrial customers in Nstar's service territory, rather than through the POR discount, and the discount was set equal to 0.03%

Nstar also provided notice that the average historical payment periods that will be in place effective May 1, 2020 will be as follows:

East

• Residential: 40 days

• Commercial: 30 days

• Industrial: 22 days

West

• All Classes: 42 days