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Nstar Files To Increase Residential, C&I POR Discounts
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Nstar (Eversource) has filed with the Massachusetts DPU proposed new standard complete billing percentages (SCBPs), or purchase of receivables (POR) discount rates, proposed to be effective May 1, 2025
Nstar's proposed POR discounts, which apply on a consolidated basis (East & West service areas) are as follows:
Nstar's POR filing also proposes a change in the establishment of the average historical payment periods which are used to determine when Nstar issues payment of purchased receivables to suppliers
Under the tariff, payments of the purchased receivables are made consistent with the average payment
period of the relevant customer class, unless otherwise ordered by the DPU
Currently, Nstar's western service area (WMA, WMECO) and eastern service area (EMA) utilize different approaches to the setting of the historical payment period
WMA establishes a single historical payment period which is applied across all receivables regardless of customer class. EMA develops a historical payment period specific to each customer class
For consistency in the POR program, Nstar proposes to adopt the single historical payment period approach in the EMA territory. The WMA and EMA historical payment periods would remain separate.
"[C]onsistency within the program is important, and executing a single monthly payment in both service areas will significantly ease the payment process," Nstar said
"In preparing for the instant filing, the Company received internal feedback from its subject matter experts and external feedback from Competitive Suppliers that having three separate payment periods for EMA was an area of potential improvement. The Company contacted members of the Electronic Business Transactions Working Group, and notified them that the Company was considering the feasibility of harmonizing the EMA POR process so that it aligned with the WMA POR process (i.e., one payment period for all classes). Many suppliers, approximately 75 percent of those who voted on the Company’s proposal, were supportive of this approach," Nstar said
Specifically, Nstar proposes to set the average historical payment periods, effective May 1, 2025, as follows:
Proposed:
EMA (all classes) - 35 Days
WMA (all classes) - 39 Days
For illustrative purposes, Nstar also calculated the average historical payment periods for each class in EMA:
EMA - Illustrative (Not Proposed To Be Used)
Residential – 41 Days
Commercial – 30 Days
Industrial – 24 Days
D.P.U. 25-POR-02
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Commercial Discount To More Than Double, Industrial Discount Jumps From Current 0%
Nstar Also Proposes Change In Development Of Payment Date Used To Establish When Receivables Are Paid To Suppliers Under POR
March 19, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
Nstar SCBPs (Applicable To All Territories)
Current Proposed
Residential 1.33% 1.55%
Commercial 0.26% 0.65%
Industrial -0.01% 0.41%
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