News Stories
Sponsored by Earth Etch. Regulatory insight and compliance solutions for today’s energy markets.
Electric Utilities Proposes Residential POR Rates Through December 2025
Pepco of Maryland proposes that, to mitigate potential under-recovered balances under residential POR due to its termination, proposing that the residential POR discount should be set at 8.0768% effective July 1, 2025 through December 31, 2025. In Maryland, Pepco’s current residential POR discount is 2.6710%.
Pepco states that its proposed POR discount reflects a forecast of late payment revenues only through December 2025. Specifically, it states “[f]irst, this recommendation mitigates the size of any eventual true-up for uncollectible expense after December 31, 2025. Second, including the forecasted costs in the POR discount rates now best assigns the eventual uncollectible expense to the appropriate retail suppliers.”
“Following December 31, 2025, Pepco recommends that there be a final reconciliation performed in two parts: (1) an initial reconciliation could be performed following December 2025 between the forecasted amounts included in the updated POR discount rates and the actual amounts seen, with a recommended timing of a filing by March 31, 2026, and (2) a last, final reconciliation could be performed and filed following the 12-month period ending December 2026, with a recommended filing date of January 31, 2027. Pepco is recommending the last reconciliation be filed with enough time following the end of Residential POR as of December 31, 2025, so that the uncollectible process followed by the Company can be expected to largely be completed for the purchased receivables.”
“Pepco also recommends that any retail supplier who served residential customers in 2025 (i.e. Pepco purchased residential receivables from the retail supplier during that period) would be included in the final reconciliations. Amounts to be refunded or charged to retail suppliers in these final reconciliations would be socialized based upon each retail supplier’s relative share of the residential receivables purchased over the entirety of calendar year 2025. This treatment is reasonable as it balances identification of suppliers who should bear the uncollectible expense associated with the accounts receivable written off.”
Pepco’s proposed updates to the POR discounts for all classes are as follows:
Delmarva also filed updates to its Maryland POR discounts, also proposing to set the residential discount socialization of any residential POR balance at program end.
Delmarva’s proposed residential POR discount under this adjustment is 6.2589% effective July 1, 2025, versus the current 2.1739%.
Delmarva’s proposed updates to the POR discounts for all classes are as follows:
