The Delaware Public Service Commission has approved a Purchase of Receivables Program governing the purchase of accounts by Delmarva Power and Light Co. from third party electric suppliers. In a general, a POR Program is one in which a regulated delivery such as Delmarva will purchase from unregulated choice suppliers amounts owed to the choice suppliers by customers who have decided to shop for their electricity supply. The utility purchases the receivables at a discount rate equal to the third party supplier’s actual uncollectible rate. Under the approved program, the amounts billed by the third party suppliers to Delmarva will exclude service charges, exit fees, early termination fees, or charges for products other than commodity. The discount rate will be re-set on a yearly basis by the commission. Delmarva had argued that during the initial phase of the program the discount rate should be set to zero to also accurately determine how many third party suppliers and customers participate during the first year. The commission rejected the zero-rate, finding that it would place the entire burden of uncollectibles upon Delmarva in the first year. It concluded that the discount rate in the first year should be based instead upon the participating suppliers’ uncollectibles for the twelve months prior to implementation. According to the commission, this approach places the uncollectible burden in the first year upon the third party suppliers, as opposed to Delmarva’s ratepayers. The second year will re-set and will be based upon the first year of POR experience. Re Review of Customer Choice in the State of Delaware, PSC Docket No. 15-1693, Order No. 9220, Aug. 21, 2018 (Del.P.S.C.).
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