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ICC Disallows POR Costs from ComEd Base Rates, Invites ComEd to File Supplemental Charge on Retail Suppliers
May 25, 2011
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No costs related to Purchase of Receivables will be included in Commonwealth Edison's distribution rates, according to an order issued by the Illinois Commerce Commission in ComEd's distribution rate case (10-0467).
Dominion Retail had argued for recovery of the costs in base rates, since choice is available to all customers. Although not seeking to place the entirety of POR costs in base rates, ComEd was seeking to recover certain costs in base rates if it is prohibited from seeking recovery of those costs through the POR discount (due to a cost cap in that docket).
"[T]he Commission concludes that all of the costs that ComEd has attributed to its PORCB program are disallowed," from inclusion in base rates, the ICC's order states.
"In so ruling, the Commission notes that ComEd witness Marquez has testified that all of the expenses that are at issue here were incurred as a result of ComEd's legal requirement to provide UCB and POR services. Because the General Assembly intended recovery of those costs to occur through a separate tariff(s), from those imposed in general rates, they cannot be included here," the ICC said.
The Commission reiterated, for the sake of clarity, that ComEd is free to file revised Information Sheets for both the POR Adjustment and the Consolidated Billing Adjustment during any POR application period, to recover any additional costs. "This Information Sheet would subject those new costs to the reconciliation proceedings applicable to Rider RCA, the Rider that relates to ComEd's PORCB services," the ICC said.
The Commission called Dominion Retail's concerns regarding the inclusion of non-POR costs (such as those related to general retail supply functions and IT and not specifically POR) within the POR discount rate "valid."
"However, ComEd continues to assert that all of the costs at issue here are PORCB-related. If, in fact, this is the case, ComEd can file a new tariff regarding its PORCB expenses, and a reconciliation will commence, in which, ComEd will be required to establish that these costs were prudently-incurred and were necessary in order for ComEd to provide POR or UCB services. The reconciliation process ensures that PORCB customers will not be paying for services that are not PORCB-specific. If they are not PORCB-related, then, they may be eligible for inclusion in rates in a future rate case if justification is presented," the ICC explained.
The rate case order also accepted certain enhancements to retail supply functions at ComEd.
Among other things, ComEd has agreed to process requests for historical interval data within one business day, if a request is made by 5 p.m. on a given day, unless there is a communication barrier or some other unforeseen circumstance.
Additionally, ComEd has agreed to, subject to technical limitations and cost recovery, allow retail electric suppliers to have multiple DUNS + 4 numbers, thereby allowing a retail supplier to separate its load into different sub-accounts at PJM. ComEd agreed to use its best efforts to put this recommendation into effect as soon as possible in 2011.
The Commission also encouraged ComEd to establish a technical working group to better assess the impact that changes to the Power Path choice and supplier site may have on ComEd's customers and electric suppliers.
Regarding a transparent price to compare, ComEd has also indicated, in the words of the Illinois Competitive Energy Association, "a willingness to determine and provide fixed price supply charges under Rate BES for customers with demands under 100kW."
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