SHOCK: Utility Files 15% POR Discount Rate -- EnergyChoiceMatters.com

SHOCK: Utility Files 15% POR Discount Rate

May 1, 2024

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Copyright 2010-24 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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85 cents on the dollar

That's approximately what retail electric suppliers would be paid under a proposed update to the purchase of receivables discount rate for residential electric customers at Pepco in D.C.

Specifically, Pepco-DC has filed to update the residential POR discount to 14.8693%, up from the current, already high, discount of 3.9807%

Pepco said in a filing that, "The increase in the Residential rate is driven by a 90% increase in write-offs compared to 2022 primarily driven by increased collection activity following the lifting of the COVID moratorium."

The proposed residential POR discount of 14.8693% includes a net write-offs factor of 6.6591% (including an offset from late payment fee revenues), and a reconciliation factor of 8.0061%.

Pepco-DC's proposed new POR discount rates for all classes, to be effective July 1, 2024, are as follows:

Pepco (D.C.) - Proposed

Rate Class                  Current    July 2024

Residential
R, MMA, Rider RAD           3.9807%     14.8693%

Small Commercial 
GS-LV-ND, T, SL, TS,
   TN & OL-LED              0.7765%      0.0000%

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

For all applicable customer classes, the 0% discount rates reflect a "zero-ing out" of a negative discount rate which resulted from the POR discount calculation, consistent with PSC policy.

Docket PEPPOR-2024-01

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