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PUCO Staff Makes Recommendations About Gas POR Discount Program Including Exploring Alternative Mechanisms
Excerpts from Staff Report
“Summary of Staff’s Recommendations As shown on Schedule A-1, the Staff of the PUCO (Staff) recommends a revenue decrease in the range of $(251,252,625) to $(225,150,474). This represents a decrease of 27.46 percent to 24.61 percent compared to test year operating revenue. This determination is based on Staff’s examination of the accounts and records of the Applicant for the 12 months ending December 31, 2023, as summarized in this report, including schedules that incorporate Staff’s recommended rate of return (ROR), rate base, and adjusted operating income.”
In the Staff report regarding Enbridge Gas Ohio (f/k/a Dominion East Ohio) rate case have made a recommendation to modify Enbridge’s current 0% discount purchase of receivables program for competitive retail natural gas service suppliers.
Staff proposed that either a discount be applied to the receivables of a retail energy supplier purchased by Enbridge, or that alternative mechanisms be explored to address write-offs associated with retail supplier debt that is currently recovered under Enbridge’s Uncollectible Expense Rider (UEX).
Enbridge did not propose any changes to the POR program as part of its rate case. Enbridge proposes to continue its existing Uncollectible Expense Rider without modification, which includes recovery, on a nonbypassable basis, of uncollectibles from default service customers, as well as uncollectibles from receivables purchased from competitive retail suppliers (as well as delivery-related uncollectibles).
“Staff recommends that the Company incorporate a discount rate or explore other avenues for the purchase of competitive retail natural gas (CRNG) services to offset the percentage of CRNG debt written off and recovered in the Uncollectible Expense Rider.”
As background, the Dominion East Ohio POR program has not had any discount for approximately 20 years
Staff Report of Investigation (06/26/2024)
23-0894 (Opened 09/29/2023)
The East Ohio Gas Company d/b/a Dominion Energy Ohio – AIR-Application to increase rates – includes POR rate mechanism)
See also:
23-0895-GA-ALT
23-0896-GA-AAM
23-0897-GA-ATA
