Utility's Residential POR Discount To Fall To Nearly 0%

Pepco and Delmarva Power have filed with the Maryland PSC proposed updates to their purchase of receivables discount rates.

All updated discount rates listed below are proposed to be effective on June 1, 2020, and remain subject to PSC approval

At Pepco, the residential POR discount is proposed to fall to 0.1408% from the current 0.6879%

At Pepco, the Type I POR discount is proposed to increase to 0.0089% from the current 0%

At Pepco, the Type II and Hourly POR discount are to remain at 0%, reflecting the zero-ing out of a negative discount rate.

At Delmarva, the residential POR discount is to increase slightly to 2.1453% from the current 2.0821%

Concerning the residential discount calculation, Delmarva noted that, due to the higher than average write-offs in 2016 and 2017, the Commission directed Delmarva in a letter order dated November 20, 2018 to amortize the residential write-offs for both years over a four-year period. Delmarva's current filing spans over two years, January 2018 through December 2019. The write-offs declined during this period by more than 50% from those in 2016 and 2017 ($1.45M in 2016, $1.33M in 2017, $0.79M in 2018, and $0.52M in 2019). Delmarva proposes in the current filing to amortize the final two years of the 2016 write-offs, one year of the 2017 write-offs, and half of the 2018/2019 write-offs.

At Delmarva, the Type I, Type II and Hourly POR discount are to remain at 0%, reflecting the zero-ing out of a negative discount rate.