PSC Approves New POR Discount Rates, Comments On Utility's Sought Change In Discount Calculation

The District of Columbia PSC approved updated discount rates for purchase of receivables (POR) at Pepco

Specifically, the new POR discounts for Pepco (D.C.) are as follows, by SOS or market-priced service rate schedule:

Rate Class                  Current    New (Approved)

Residential
R, MMA, Rider RAD           0.0000%   0.0000%

Small Commercial 
GS-LV ND, T, SL,
   TS, TN (SOS)             0.0000%   0.0000%

Large Commercial
GS-LV, GS 3A, GT LV, MGT LV,
   GT 3A, GT 3B, RT (SOS)   0.0000%   0.0000%

Market Priced
GSLV-ND, GS-LV, GS 3A, 
   GT LV, MGT LV, GT 3A, T, 
   SL, TS                   0.0000%   0.0000%

For all classes, the 0% discounts reflect the "zeroing-out" of negative discount rates that otherwise result from the discount rate calculation

The updated discount rates shall be effective upon the Notice of Final Tariff’s publication in the D.C. Register.

As previously reported, Pepco had proposed a change to the POR discount rate calculation to remove late payment fee revenue as an offset to uncollectibles effective June 1, 2021. RESA opposed the change

Concerning on this issue, the PSC said, "We do not address RESA’s request that the Commission deny Pepco’s request to prospectively exclude Late Payment Revenue from the calculation of the Discount Rate beginning June 1, 2021, because that issue is not before us under the current tariff. We simply note, however, for Pepco’s consideration in a future POR tariff filing that Order No. 16916 directs Pepco to include late payment revenues in its computation of the POR Discount Rate or, in the alternative, include a Cash Working Capital adjustment in its POR discount rate computation."