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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com

The residential purchase of receivables discount at Washington Gas Light in the District of Columbia will not be 15% — the discount that would have resulted under the standard calculation to update the POR discount rate — as the D.C. PSC has instead approved WGL’s proposed use of an alternative input in the discount rate calculations

While not as excessive as the 15% discount, as discussed further below, the new WGL residential POR discount will still be relatively high at 7.718%. The current residential discount is 6.897%.

As first reported by EnergyChoiceMatters.com, the standard operation of WGL’s POR discount calculation would have resulted in a new residential discount rate of over 15%

In filing its annual update to the POR discounts, WGL departed from the standard process and instead used 2022 levels for bad debt and late fees as a proxy for current ongoing costs, rather than relying on 2023 data. WGL said that using 2022 data provides a more reasonable estimate of going forward costs for these items, due to the resumption of disconnections following a moratorium

As a result of using 2022 levels for bad debt and late fees, WGL’s new residential POR discount is 7.718%, instead of a rate of over 15% that would have resulted from using 2023 data

The PSC has now approved WGL’s alternative calculation and the new 7.718% residential POR discount rate

For non-residential accounts, the PSC approved WGL’s proposal to set the non-residential POR discount at 0.478%, down from the current 0.809%

The new POR discounts are effective upon publication of a notice of final tariff in the D.C. Register

WGPOR-2024-01