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Tag Archive: utility rates

Delmarva Power Files Proposed DE Purchase of Receivables

transmission towers for electricityAfter years of proceedings at the Delaware Public Service Commission, the end – or the beginning – is in sight. In late March, Delmarva Power filed its proposed Purchase of Receivables (POR) program, including the going-in discount rates, with the Delaware Commission. With a POR program, the utility purchases the receivables of the retail electric supplier operating on the system, which helps to level the playing field between suppliers and the utility which has the right to disconnect service for non-payment.

Delmarva recommends that the program take effect for service rendered on June 1, 2019, as the Commission has previously directed. The discount rates are important because those are the “discounts” that retail suppliers must accept in allowing the utility to purchase the receivable. Delmarva proposes the following discount rates for the first year of the program:

Class Discount Rate
Residential 0.6167%
Small C&I 0.3409%
Large C&I 0.1182%
Hourly Priced Service 0.0%

 

It is expected that the Commission will consider the POR proposal at one of its May administrative meetings, in time for the program to being June 1, 2019. For more information, please contact one of our energy lawyers.

MD PSC Approves Modified Electric Vehicle Portfolio

electric car iconThe Maryland Public Service Commission issued an order on January 14, 2019, approving Electric Vehicle (“EV”) Portfolio Programs for Maryland’s electric distribution utilities. The EV Portfolio Programs aim to increase EV usage in Maryland by expanding EV tariff options, furthering utility investment in EV charging infrastructure, and offering customer programs for EV owners.

The Proposed EV Portfolio Programs:

Case No. 9478 kicked off with a petition filed on January 22, 2018, by the Public Conference 44 Electric Vehicle Work Group Leader, with the support of the utilities and several other stakeholders, to implement a statewide electric vehicle proposal. The proposals for each participating utility are summarized below:

Baltimore Gas and Electric: BGE’s proposed program included installation of 18,455 EV chargers, costing $48.1 million. For residential customers, BGE proposed $9.7 million in rebate programs that could be pared with BGE’s existing “Whole-House Time-of-Use Rate” for customers with EV chargers. BGE also proposed $14.1 million in rebates and incentives, as well as a “Demand Charge Credit” program, for non-residential customers who install EV chargers for fleet use. In addition to these customer programs, BGE proposed a public network of 1,000 EV chargers, costing $17 million, and a grant program for 490 EV chargers, costing another $7.2 million.

Pepco and Delmarva: Pepco and Delmarva proposed similar programs, including a combined 3,038 EV chargers costing $41.9 million. The Pepco and Delmarva proposals also included residential rebate programs, off-peak charging credits, and expansion of Pepco’s “Whole-House Time-of-Use Rate” to Delmarva. The price tag for the Pepco and Delmarva residential programs was $5 million. For non-residential customers, Pepco and Delmarva proposed rebate and incentive programs for EV chargers, a demand charge credit program, for a combined cost of $10 million. Pepco and Delmarva also proposed installing 608 public EV chargers, costing $16.9 million. Pepco and Delmarva proposed $6.9 million in additional rebate and grant programs for installation of EV chargers. The proposed “DC Fast Charging with Energy Storage” demonstration project is aimed at minimizing adverse grid impacts from installation of fast charging stations, for another $2.8 million.

Potomac Edison: Potomac Edison also proposed rebates, incentives, public chargers, and EV tariffs, with a total of 2,259 EV chargers costing over $12.3 million.

The utilities proposed ratepayer financing for the $104.7 million investment in new infrastructure charging portfolios, meaning customers will pay for these programs through electric distribution rates or customer surcharges over a five year period. However, there are other state and local incentive programs available that may offset some of the costs for the new chargers. Some of the costs would also be recovered from charging customers that use public or non-residential chargers. As discussed below, the Commission did not approve these programs as proposed, reducing the program size and the cost to Maryland ratepayers.

The Commission’s Decision (Order No. 88997):

In its order, the Commission reduced the BGE and Potomac Edison residential rebate programs to a total of 1,000 each. The Commission also limited the rebate to $300 (compared to the proposed $500 rebate). The Commission approved the proposed Pepco and Delmarva residential rebate offerings. The Commission also approved continuation and expansion of utility “Whole-House Time-of-Use Rate” offerings for residential customers. Regarding the non-residential customer proposals, the Commission limited its approval to rebates and incentives for EV chargers installed at multi-unit or multi-tenant dwellings. The Commission also approved a limited number of rate-payer funded public charging stations: 500 for BGE, 100 for Delmarva, 250 for Pepco, and the full 59 proposed by Potomac Edison. The Commission rejected the proposed $14 million in innovation rebate and grant programs, as well as the proposed Pepco and Delmarva demonstration projects. The Commission also directed all the utilities to recover costs through traditional ratemaking in a future rate case (as proposed by BGE, Delmarva, and Pepco), rather than Potomac Edison’s upfront customer surcharge.

The next step is for the utilities to develop and submit tariff proposals to implement the EV programs approved by the Commission.

If you have any questions about the Maryland Public Service Commission’s decision on the Statewide Electric Vehicle Program or other regulatory issues, contact Eric Wallace or any of our mid-Atlantic energy lawyers.

Dominion Buying Gas Distributor Questar

Dominion Resources Inc. (“Dominion”) announced Monday, February 1, 2016, that it plans to purchase Utah-based Questar Corporation (“Questar”), a natural gas distributor, for approximately $4.4 billion in an all-cash deal.  Purchasing Questar will expand Dominion’s customer base to customers in Western states.  With Questar’s acquisition, Dominion would serve approximately 2.5 million electric customers and 2.3 million gas customers in seven states.  In addition, Dominion would operate more than 15,000 miles of natural gas transmission, gathering and storage pipelines.

The acquisition is set to close by the end of 2016, pending approval from Questar’s shareholders, the Federal Trade Commission, and, if needed, the Utah Public Service Commission and the Wyoming Public Service Commission.  The companies indicated they will also give information about the transaction to the Idaho Public Utilities Commission. After closing, Questar will remain headquartered in Salt Lake City, Utah, operating as a unit of Dominion.

If you have questions about the Dominion acquisition or utilities regulation in Virginia or the mid-Atlantic, please contact one of our energy lawyers.