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ICC Staff Seeks Status Quo for ComEd POR Until Discount Rate Clarified
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February 16, 2011
Illinois Commerce Commission Staff have filed an emergency motion for clarification of the Commission's February 9 Amendatory Order regarding Commonwealth Edison's Purchase of Receivables program, asking that the current discount rate continue to apply until the ICC clarifies several conflicting statements in the amendatory order regarding the discount rate.
As only noted in Matters (2/11), the amendatory order threw ComEd's POR discount rate into chaos by:
1) Suggesting that an additional 0.44% discount would be applied to receivables to recover administrative costs while retaining language that also applies a 50¢ fee per utility consolidated bill to recover the same costs, and
2) Suggesting that a single uncollectibles rate of 1.843% (which itself appears to
be a typo of the 1.8453% factor contained in a ComEd data response) would be applied
to all customer classes, while retaining language that suggests uncollectibles shall
still be based on class-
See our 2/11 story for complete discussion of the amendatory order's conflicting provisions.
"Staff recommends that the Commission clarify its Amendatory Order to remove any ambiguity about which cost recovery method the Commission has adopted," Staff said.
"[R]egarding what the Commission concluded, or intended to conclude, on the issue of a combined uncollectibles charge, Staff is simply unable to come to an unambiguous conclusion," based on the current conflicting language in the amendatory order.
Furthermore, Staff sought to keep the current discount rate in place pending clarification, to minimize the potential that suppliers would have to temporarily adjust their pricing to reflect discount rates which ultimately may be further adjusted by the Commission in a clarifying order.
"Staff understands that some retail electric suppliers (RESs) are currently using service under the ComEd PORCB tariffs filed in compliance with the December 15 Final Order. These tariffs are currently effective. Staff also understands that other RESs are, or at least were, planning on doing so shortly also based upon the currently effective tariffs. The Amendatory Order, however, requires ComEd to file new tariffs in compliance with its new directives within five business days."
"Staff would like to avoid the scenario wherein ComEd would file new tariffs based upon a good faith interpretation of the Amendatory Order, which ultimately may prove to be wrong. For instance, if ComEd believes the Amendatory Order requires it to file new tariffs adopting the combined uncollectibles charge but the Commission, in fact, did not intend to reach that conclusion, ComEd would be required to change its systems to implement the combined uncollectibles charge and, after the Commission issues its clarification, would have to change back to the current status quo. Likewise, RESs would effectively have to base their business models first on the two distinct uncollectible discount rates, then adapt their plans to a unified rate, and then back to the two separate uncollectible discount rates. In Staff's view, this scenario should be avoided."
"Accordingly, Staff suggests that the Commission allow the current status quo to remain in place in order to minimize market disruptions until such time as it has an opportunity to address these issues at an open meeting and clarify the Amendatory Order," Staff said.
Under the original December POR order, the discount was set at 50¢ per utility consolidated
bill plus a discount percentage for uncollectibles equal to the supply portion of
Rider UF, which resulted in an uncollectibles discount of 2.239% for residential
customers, and 0.774% for non-
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