Regulator Conditionally Approves Utilities' Alternative Purchase Of Receivables (POR) Discounts -- EnergyChoiceMatters.com

Regulator Conditionally Approves Utilities' Alternative Purchase Of Receivables (POR) Discounts

Residential Discount Falling From 3% to 1.4% At One Utility

April 29, 2022

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Reporting by Paul Ring • ring@energychoicematters.com

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The Massachusetts DPU has conditionally approved the alternative calculations of standard complete bill percentages (SCBPs, or POR discount rates), subject to investigation and reconciliation, at National Grid and Nstar.

The DPU noted that receivables have been impacted by a COVID-related disconnection moratorium, and previously keeping the prior POR discount in place due to such unique conditions, rather than adjusting the rates annually under the tariff's formula

This has resulted in an over-collection of supplier receivables. However, Nstar said that the discount rate is still artificially low based on the delay in service disconnects and service shutoffs during COVID-19, and it expects an increase in future discount rates from large write-off amounts

The alternative calculations are meant to reduce volatility in the POR discount rates, the DPU noted, and to allow for further investigation of ongoing impacts from the prior shut-off moratorium.

At Nstar (both East and West), the alternative SCBPs conditionally approved are as follows (current and normal calculation also provided for reference)

Nstar SCBPs
                                     Conditionally
                      Calculation    Approved
             Current   Per Tariff    Alternative
Residential   1.69%      0.60%       0.96%
Commercial    0.24%      0.23%       0.23%
Industrial    0.11%      0.34%       0.34%

At National Grid, the alternative SCBPs conditionally approved are as follows (current and normal calculation also provided for reference)

National Grid SCBPs
                                     Conditionally
                      Calculation    Approved
             Current   Per Tariff    Alternative
Residential   3.11%      0.38%       1.35%
Commercial    1.35%      0.01%       0.34%
Industrial    0.12%      0.12%       0.12%

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