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PSC Directs Utilities To Report On POR Discount Rate Changes, Balances In Light Of POR Wind Down
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The Maryland PSC has directed the electric and natural gas utilities with purchase of receivables programs to report on potential changes to the residential POR discount rates, and a plan to resolve final residential POR balances, in light of SB 1's prohibition on residential purchase of receivables
For each utility, the PSC directed the utility to file, no later than September 1, 2024, an update on
ongoing POR balances for residential customers, any recommended change to the
residential POR rate for the remaining months of residential POR, a plan for determining
and resolving final residential POR balances, and an explanation of how the utility will address
residential retail supply billing conducted through utility consolidated billing once the POR prohibition has
taken effect
During today's administrative meeting, Baltimore Gas & Electric noted that the residential POR prohibition applies to new and renewed contracts effective January 1, 2025. Thus, BGE noted that POR would still apply beyond January 1, 2025 to residential receivables under existing contracts.
However, BGE noted that it currently has no way of determining which residential receivables will remain eligible for POR. While BGE acknowledged that the issue was not currently before the Commission today as the PSC reviewed various POR discount updates, BGE observed that the ability for the utility to identify which receivables remain eligible for POR is one of the issues that will need to be addressed in implementing SB 1
The PSC also approved new POR discount rates at all of the applicable utilities. Except at Delmarva Power, the PSC approved the new POR discounts as filed
BGE
Baltimore Gas & Electric's new electric POR discount rates, approved to be effective June 1, 2024, are as follows:
BGE's new natural gas POR discount rates are as follows, approved to be effective June 1, 2024:
Pepco-MD
At Pepco-MD, the residential POR discount is approved to increase to 2.6710%, up almost 50% from the current 1.7948%
For Pepco-MD Type I customers, the POR discount is approved to decrease to 0%, from the current 0.0220%
POR discounts for Pepco-MD Type II and Hourly customers will remain at 0%
The new Pepco-MD POR discounts are effective July 1, 2024
Delmarva-MD
At Delmarva, the PSC adopted a Staff recommendation to modify an input used in the calculation of the POR discount rate, which resulted in a higher residential POR discount versus the rate originally filed by Delmarva
Delmarva's
practice has been to use total write-offs and electric revenue over the life of the POR program to
calculate POR discount rates
Staff said that the current method of utilizing total write-offs and total electric revenue
billed is no longer necessary since Delmarva's previous write-off balances have been fully
amortized
Staff proposed, and the PSC accepted, using write-off balances for the calendar year 2023 in the POR discount calculation, which Staff said, "will
enable DPL to recover costs that better reflect DPL’s current write-off balances and
minimize DPL’s outstanding balances once residential POR is prohibited."
As a result of the Staff recommendation, the PSC set the new Delmarva POR discount for residential customers at 2.1739%, effective July 1, 2024
For comparison, Delmarva had proposed to set the residential discount to 1.2104%, using the prior methodology. The current residential discount is 2.1803%
The Delmarva POR discounts for all other classes remain at 0%
Potomac Edison
The new Potomac Edison new purchase of receivables (POR) discount rates, approved to be effective June 1, 2024, are as follows:
Washington Gas Light-MD
For residential accounts, the WGL POR discount is approved to be set at 3.2418%, about 68% higher than the current 1.9297%
For non-residential accounts, WGL is approved to set the POR discount at 0.0260%, up from the current 0% discount rate
The new WGL-MD POR discounts are effective June 30, 2024
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PSC Approves Large POR Increases At Several Utilities
June 12, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
BGE Electric
Prior Discount 6/1/24 Discount
Residential 0.6591% 2.3921%
Type I 0.0000% 0.4623%
Type II 0.0000% 0.0000%
Hourly 0.0000% 0.0000%
BGE Electric Gas
Prio Discount 6/1/24 Discount
Residential (Sch. D) 0.8225% 3.3389%
General Service (Sch. C) 0.0000% 0.0000%
Potomac Edison-Maryland
Prior Discount 6/1/24 Discount
Residential 0.9328% 4.2722%
Type I 0.0000% 0.0000%
Type II 0.0000% 0.0000%
Hourly 0.0000% 0.0000%
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