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Pepco Files 15% POR Discount Rate
In a Pepco Letter in the District of Columbia has filed to update the residential POR discount to 14.8693%, up from the current, already high, discount of 3.9807%.
Pepco said in a filing that, “The increase in the Residential rate is driven by a 90% increase in write-offs compared to 2022 primarily driven by increased collection activity following the lifting of the COVID moratorium.” [Emphasis added]
The proposed residential POR discount of 14.8693% includes a net write-offs factor of 6.6591% (including an offset from late payment fee revenues), and a reconciliation factor of 8.0061%.
Pepco-DC’s proposed new POR discount rates for all classes, to be effective July 1, 2024, are as follows:
Pepco (D.C.) – Proposed
Rate Class Current July 2024
Residential
R, MMA, Rider RAD 3.9807% 14.8693%
Small Commercial
GS-LV-ND, T, SL, TS,
TN & OL-LED 0.7765% 0.0000%
Large Commercial
GS-LV, GS 3A, GT LV, MGT LV,
GT 3A, GT 3B, RT 0.0000% 0.0000%
For all applicable customer classes, the 0% discount rates reflect a “zero-ing out” of a negative discount rate which resulted from the POR discount calculation, consistent with PSC policy.
