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Major Choice Utility Addresses PUC Staff Recommendation To Add Discount To Long-standing Zero Discount POR Program & Staff's Musing On Ending POR
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Enbridge Gas Ohio (EOG, f/k/a Dominion East Ohio) has offered alternatives meant to address concerns from Staff of the PUC of Ohio regarding EOG's current zero discount purchase of receivables program
As previously reported, PUCO Staff, in an EOG rate case, had proposed to modify Enbridge's current 0% discount POR program to add a discount, or to explore different changes to address write-offs associated with retail supplier bad debt
Staff specifically cited as worthy of exploration a policy of limiting the purchase of receivables to the Standard Choice Offer rate.
Staff has further recommended that Enbridge Gas Ohio examine, "the continued need for a purchase of receivable program as the Company exits the retail merchant function."
See more details here
As previously reported, EOG opposed Staff's POR proposals. EOG had not proposed any changes to POR in its rate case
EOG, in an update to its rate case, has now offered various alternatives to address Staff's concerns on retail supplier uncollectibles recovered from ratepayers, without modifying the POR program
EOG reiterated its belief that changes to POR, "are not
necessary or warranted in this case."
EOG said that Staff's concerns may be resolved through better credit and collection practices by EOG
In such vein, EOG newly proposed to conduct a review of its arrearages to be shared with PUCO Staff and undertaken in a manner to allow benchmarking versus the state's other LDCs
EOG suggested that it would develop a plan to reduce arrearage balances at the time of disconnection, with a goal of matching the levels experienced at other Ohio LDCs, taking into account the unique circumstance at each utility
EOG would also conduct outreach on the assistance programs available to
customers.
EOG said that these measures should be given time to produce improvements before PUCO undertakes, "significant changes to the Choice program[.]"
In other matters, EOG is no longer proposing to eliminate the Transportation Surcredit Rider, but EOG would significantly reduce the amount of the credit under the rider
Currently, the Transportation Surcredit Rider is a mechanism whereby the costs of PUC and OCC assessments are essentially bypassable (via a bypassable credit mechanism), with such costs recovered through base rates
Now, EOG does not oppose keeping the
Transportation Surcredit Rider as currently designed, on the condition that the rate is set at
$0.0009 per mcf.
Currently, the Transportation Surcredit Rider provides a credit of $0.0173 per Mcf to all volumes under the following service schedules: Energy Choice Transportation Service – Residential; Energy Choice Transportation Service – Nonresidential; and Large Volume Energy Choice Transportation Service
EOG has also proposed changes to capacity release for Energy Choice Pooling Service (ECPS) to implement an additional capacity reallocation related to certain Upstream
Pipelines, as described below:
a. The annual capacity allocation under the General Terms and Conditions of
Energy Choice Pooling Service would continue to occur following the SSO/SCO
auction (effective April 1st and based on April 1st customer count), involving
capacity on all EOG Upstream Pipelines and subject to all current and proposed
conditions except as set forth below.
b. An additional "seasonal" reallocation would occur as follows:
i. The seasonal reallocation would be limited to two contracts, comprising
EOG’s largest capacity components:
1. EGTS FTNN K#100002 for the East Ohio system; and
2. TCO FTS K#89769 the West Ohio system.
ii. The seasonal reallocation would be based on September 30 customer
counts, with the new releases to be effective November 1 through March 31.
iii. The seasonal reallocation would be mandatory, and not subject to the
provisions of ECPS 4.1, under which capacity is first made available on a
voluntary basis, and thereafter on a mandatory basis.
iv. EOG would continue the practice of not requiring Suppliers to accept
releases where the pro rata amount of capacity would be less than 1%.
Case 23-0897-GA-ATA et al.
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December 18, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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