Utility Files To Cut POR Discount Rate In Half, But Resulting Rate Is Still Nearly 6%

Pepco in the District of Columbia has filed updates to its electric purchase of receivables discount rates

Pepco's latest calculations include amortizing the residential POR bad debt expenses over a period of three years. Additionally, Pepco continues to use late payment fee revenue as an offset to the POR uncollectibles balance

This results in a proposed residential POR discount of 5.8954%, which is about half of the current residential POR discount of 11.3079%

The proposed residential POR discount of 5.8954%, which is proposed to be effective October 1, 2026, reflects an uncollectibles factor of 4.7892% and a reconciliation component of 1.1272%

The small commercial and large commercial POR discounts are proposed to remain at 0%, which reflect the zero-ing out of negative discount rates which would otherwise result from the standard POR calculation

Docket PEPPOR; PEPPOR-2026-01