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The Retail Energy Supply Association (RESA) filed comments with the District of Columbia Public Service Commission regarding the purchase of receivable (POR) discount calculation.

Regarding amortization periods, RESA recommends that, “the Commission consider whether and for how long a utility should be allowed to amortize under-collections on a case-by-case basis. Depending on the initial discount rate calculation, the Commission and stakeholders would want to analyze the amount of and reasons for the under-collections, the impact that various amortization time periods may have on the discount rate, and the appropriate carrying costs. Amortizing under-collections has worked well in other jurisdictions, including in Delaware and Maryland for Delmarva Power, and should continue to be considered in the District”.

In commenting on individual supplier discount rates, RESA says, “The POR programs, which have existed since 2013 for Pepco and 2018 for WGL, have evolved to the point where each supplier should have its own discount rate, ensuring proper cost causation allocation and preventing cross-subsidization. RESA recommends that the Commission direct the utilities, with stakeholder input via a technical conference, to design a POR program with specific supplier discount rates, including the system changes needed to implement the program, a timeline, and estimated costs”.