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Utility Files To Increase POR Discount Rates
January 28, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com
As part of a rate case, UGI Utilities - Gas Division in Pennsylvania has filed to increase its purchase of receivables discount rates, due to a proposed change in the merchant function charge
The uncollectibles component of the POR discount equals the merchant function charge (the POR discount also includes other components)
For residential customers, the new POR discount rate would be 2.70%, versus the current 2.41%
For non-residential customers, the new POR discount rate would be 0.70%, versus the current 0.58%
UGI would increase the residential Merchant Function Charge to 2.56%, up from 2.27%
The non-residential MFC would be set at 0.56%, up from the current 0.44%
The MFC percents are applied to purchased gas cost rates which vary throughout the year, and the actual MFC charge that would be implemented at the time of tariff approval is not known at this time
For illustrative purposes, using current (Dec. 2024) supply rates, the impact of the change in MFC percentage results in the following change in the MFC charge:
Merchant Function Charge
Current Illustrative
Change
Residential - Rate R, General Service
per ccf $0.01278 $0.01441
Non-residential - Rate N, General Service
per MCF $0.0248 $0.0315
UGI does not propose any change to the bypassable Gas Procurement Charge
R-2024-3052716
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