2577598 Formal Case No. 945, In the Matter of the Investigation into Electric Service Market Competition and Regulatory Practices and Formal Case No. 813, In the Matter of the Application of Potomac Electric Power Company for an Increase in its ...

PUBLIC SERVICE COMMISSION OF THE DISTRICT OF COLUMBIA

NOTICE OF PROPOSED RULEMAKING

 

FORMAL CASE NO. 945, IN THE MATTER OF THE INVESTIGATION INTO ELECTRIC SERVICE MARKET COMPETITION AND REGULATORY PRACTICES

 

and

 

FORMAL CASE NO. 813, IN THE MATTER OF APPLICATION OF POTOMAC ELECTRIC POWER COMPANY FOR AN INCREASE IN ITS RETAIL RATES FOR THE SALE OF ELECTRIC ENERGY

 

1.          The Public Service Commission of the District of Columbia (Commission), pursuant to section 34-802 of the District of Columbia Code and in accordance with section 2-505 of the District of Columbia Official Code,[1] hereby gives notice of its intent to act upon the Potomac Electric Power Company’s (Pepco or Company) Rider “RADS” – Residential Aid Discount Surcharge (“Application”)[2] in not less than thirty (30) days from the date of publication of this Notice of Proposed Rulemaking (NOPR) in the D.C. Register.  In the Rider “RADS”, Pepco seeks to reduce the surcharge from $0.000691 to $0.000515 in order to maintain the authorized funding level for RAD program. 

 

2.          Some background information is helpful. The Commission has implemented a Residential Aid Discount (RAD) Surcharge to fund the RAD program for low-income customers.  Pepco recovers the costs of the RAD discount through a per kilowatt hour surcharge set by the Commission.  The initial surcharge level in 2010 was $0.000503.[3]  Pepco may seek a true-up for the surcharge on an annual basis, in the event of an over or under collection of the RAD Surcharge and to address any changes in income eligibility criteria.[4] 

 

3.          In January 2011, Pepco requested that the surcharge be increased from $0.000503 to $0.000691 in order to recover an under-collection of four hundred twenty-two thousand fifty-seven dollars ($422,057) over the period October 2009 to December 2010, and to account for increased participation.[5]  The Commission granted Pepco’s request.[6]   

 

4.          On March 9, 2012, Pepco requested that the surcharge be decreased from $0.000691 to $0.000515 to reflect the difference between an under-collection of five hundred twenty-two thousand two hundred twenty-nine dollars ($522,229) and an over-collection of one million two hundred ninety-one thousand two hundred seventy dollars ($1,291,270).[7]  Pepco asserts that the five hundred twenty-two thousand two hundred twenty-nine thousand dollars ($522,229) is part of the six hundred sixty-one thousand five hundred eighty-four dollars and ninety-five cents ($661,584.95) amount that was subject to dispute in 2011.[8]  With regard to the five hundred twenty-two thousand two hundred twenty-nine dollars ($522,229), Pepco further asserts that, contrary to its representation in 2011 (when this amount was included in the six hundred sixty-one five hundred eighty-four dollars and ninety-five cents ($661,584.95)), the amount was never collected from ratepayers and is, in fact, an under-collection.[9]  According to Pepco, the under-collection was the result of its being unaware that the 2010 surcharge was also used to fund the Low Income Home Energy Assistance Program (LIHEAP), actually the LIHEAP Expansion and Energy Education program.  When DDOE used available funds to cover LIHEAP costs it apparently created a shortfall in RAD funding which Pepco is now attempting to collect.  The remainder of the six hundred sixty-one thousand five hundred eighty-four dollars and ninety-five cents ($661,584.95) (approximately one hundred thirty-seven dollars ($137,000)) is apparently the subject of negotiation between Pepco and DDOE and Pepco is not currently attempting to recover this amount in the surcharge.[10]  The Company requests that the revised Rider RADS become effective with service on and after April 9, 2012.[11]  As such, Pepco proposes to amend the following tariff page:

 

                                                                                     ELECTRIC-- P.S.C. of D.C. No. 1

                                                                                                        Second Revised Page No. R-46           

 

The amended tariff page, containing the proposed revisions, will read:

 

                                                                                     ELECTRIC-- P.S.C. of D.C. No. 1

                                                                                                          Third Revised Page No. R-46

 

5.          This Application may be reviewed at the Office of the Commission Secretary, 1333 H Street, N.W., Second Floor, West Tower, Washington, D.C. 20005, between the hours of 9:00 a.m. and 5:30 p.m., Monday through Friday as well as on the Commission’s web site at www.dcpsc.org or through the following link:

http://www.dcpsc.org/edocket/docketsheets_pdf_FS.asp?caseno=FC813&docketno=798&flag=D&show_result=Y.  Copies of the tariff are available upon request, at a per-page reproduction cost. 

 

6.          Comments on the Application must be made in writing to Brinda Westbrook-Sedgwick, Commission Secretary, at the above address.  All comments must be received within thirty (30) days of the date of publication of this NOPR in the D.C. Register.  Persons wishing to file reply comments may do so no later than forty-five (45) days of the date of publication of this NOPR in the D.C. Register.  Once the comment period has expired, the Commission will take final rulemaking action on Pepco’s Application.  Persons with questions regarding this proposed rulemaking shall call 202-626-5150.

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[1]               D.C. Official Code § 34-802 (2010 Repl.) and D.C. Official Code § 2-505 (2011 Repl.).

 

[2]               Formal Case No. 945, In the Mater of the Investigation into Electric Service Market Competition and Regulatory Practices (“F.C. No. 945”) and Formal Case No. 813, In the Matter of Application of Potomac Electric Power Company for an Increase in its Retail Rates for the Sale of Electric Energy, (“F.C. No. 813”),  Letter to Dr. Jesse P. Clay, Jr., Acting Commission Secretary, from Peter Meier, Vice President Legal Services, re: Formal Case Nos. 813 and 945, filed March 9, 2012 (hereinafter referred to as “Application”).  Pepco filed a proposed Rider RADS on February 2, 2012, but revised and re-filed it on March 9, 2012. 

 

[3]               F.C. No. 945 and F.C. No. 813, Order No. 15986, rel. September 20, 2010.

 

[4]               F.C. No. 945 and F.C. No. 813, Order No. 15986, rel. September 20, 2010.

 

[5]               F.C. No. 945 and F.C. No. 813, Letter to Dorothy Wideman, Commission Secretary, from Deborah M. Royster, Deputy General Counsel, re: Rider “RADS,” and Proposed Tariff, filed January 31, 2011 (hereinafter referred to as “the January 31, 2011 Application”) at 2.

 

[6]               F.C. No. 945 and F.C. No. 813, Order No. 16357, rel. May 5, 2011.

 

[7]               F.C. No. 945, Application, Attachments B and C. 

 

[8]               F.C. No. 945, Application at 1.  See also, the January 31, 2011 Application at 1. 

 

[9]               F.C. No. 945, Application at 1. 

 

[10]             F.C. No. 945, Application at 1. 

 

[11]             F.C. No. 945, Application at 2.