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NRG Energy brands filed a petition seeking changes to the mechanisms related to the electricity standard complete billing percentages (SCBPs), or purchase of receivables (POR) discount rates in Massachusetts.

As previously reported, under existing mechanisms, the National Grid Purchase of Receivable (POR) discount rate for residential customers is proposed to increase to 2.99% from the current 1.99%, while Nstar’s POR discount for residential customers is proposed to increase to 1.33% from the current 0.86%.

Filing similar comments in respective proceedings regarding EDC’s discount rates, NRG said “As discussed below, the SCPBs proposed by NGRID represent a dramatic decrease in payments made to competitive retail suppliers with respect to their residential and commercial customers. As such, the Company’s proposal will create significant rate volatility in the market which will adversely impact municipal aggregation and competitive supply customers. 

Consistent with the comments set out below, in the interests of affected customers, the NRG Retail Companies respectfully request that the Department consider and investigate alternative approaches to these types of annual changes in POR discount rates in this docket or a future POR docket.”

NRG urged the DPU to investigate alternative approaches to the annual changes in POR discount rates, “in order to mitigate volatility in the municipal aggregation and retail energy competition markets.”

NRG said that such alternatives may include, but need not be limited to:

Suppliers pay a consistent rate and NGRID and Eversource create a non-bypassable reconciliation charge to collect or refund variations over time.

Establish a bandwidth for year-over-year changes to the POR discount, with costs being deferred for percent changes outside of the band.

NRG noted that the DPU has approved alternative POR discounts, which have deviated from the standard calculation, in the past, due to concerns about the impact of a COVID-19 disconnection moratorium on uncollectibles and to mitigate fluctuations associated with the reconciliation factor.

D.P.U.24-POR-01-NRGRetailCompaniesInitialComments   (04/12/2024)
D.P.U.24-POR-01NoticeandOrderofNotice.pdf  (03/19/2024)
D.P.U.24-POR-Purchase of Receivables  (03/15/2024)
D.P.U.24-POR-1_PurchaseOfReceivables(Final)(51010  (03/15/2024)
24-POR-01 et al (03/15/2024)

Petition of Massachusetts Electric Company and Nantucket Electric Company each d/b/a National Grid pursuant to the Company’s Tariffs M.D.P.U. Nos. 1420 and 1421, § 8B, for review and approval by the Department of Public Utilities of the Companies’ Standard Complete Billing Percentages for effect May 1, 2024, under the Companies’ Purchase of Receivables Program.