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PUC Approves Changes To POR Discount Rates, Bypassable Supply Procurement Charge

December 12, 2024

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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The Pennsylvania PUC has modified several bypassable charges, and the purchase of receivables discount rates, for natural gas service at PECO, as part of a rate case order

Under the order, PECO will lower the bypassable Gas Procurement Charge (GPC) to $0.0360 per Mcf, from the current $0.0386 per Mcf

PECO's merchant function charges are also updated under the PUC's order. Specifically, the rate case established new write-off factors which are applied to the sales service commodity charge to establish the bypassable merchant function charge

Because the sales service commodity charges have changed since PECO first filed an illustrative tariff reflecting the application of the new write-off factors used to calculate the MFC, the new per-Mcf MFCs have not yet been confirmed (while the write-off factors are constant, the volumetric MFC rates change quarterly based on the application of the MFC write-off factor to the quarterly sales service commodity rate)

The new MFC write-off factors are slightly higher than the current write-off factors for the small customer classes, as listed further below

The MFC write-off factors also equal the total POR discount rate under PECO's natural gas POR program

The new MFC write-off factors, and the identical POR discount rates, are below:

PECO MFC Write-Off Factors
PECO Gas POR Discount Rates

                         Current       New
Rates GR and CAP           0.42%     0.47%
Rate GC                    0.13%     0.16%
Rates OL, L and MV-F       0.04%     0.01%

R-2024-3046932

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