3371252 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 FINAL 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”) hereby gives notice, pursuant to section 2-505 under and in accordance with section 34-802 of the District of Columbia Code,[1] of its final rulemaking action taken in the above-captioned proceeding.  On September 7, 2012, the Commission released Order No. 16889, approving Potomac Electric Power Company’s (Pepco or Company) Rider “RADS” – Residential Aid Discount Surcharge (Application).[2] 

 

2.          On March 9, 2012, in accordance with Order Nos. 14712 and 15986[3] and pursuant to D.C. Code Sections 8-1773 and 8-1774, Pepco filed an updated Rider RADS.[4]  The Residential Aid Discount (RAD) Surcharge is the means by which Pepco recovers the generation subsidy for the RAD Program.[5]   In its filing, Pepco states that its calculations for the updated Rider RADS reflect an under-collection of five hundred twenty-two thousand two hundred twenty-nine thousand dollars ($522,229) for the RAD Subsidy from Fiscal Year 2010.[6]  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.  In order to address the under-collection, Pepco requests that the surcharge be adjusted from $0.000691 to $0.000515.  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

 

3.         According to its tariff, Pepco’s surcharge rate for its Rider RADS will be updated annually to be effective January of each year to reflect any over or under collection of the RAD Surcharge for the RAD Subsidy and to reflect any changes in income eligibility criteria.[7]  A Notice of Proposed Rulemaking (“NOPR”) was published in the D.C. Register on June 15, 2012, inviting public comment on the updated Rider RADS.[8]  No comments were filed in response to the NOPR and the Commission is satisfied that the surcharge proposed by Pepco complies with Order Nos. 14712 and 15986 and D.C. Code Sections 8-1773 and 8-1774.   Subsequently, the Commission approved Pepco’s Application by Order No. 16889.  The updated Rider RADS surcharge will become effective with service on and after October 1, 2012.

 

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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 Matter 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 Brinda Westbrook-Sedgwick, Commission Secretary, from Peter E. 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]               Formal Case No. 1053, In The Matter of The Application of Potomac Electric Power Company for Authority to Increase Existing Retail Rates and Charges for Electric Distribution Service (“F.C. No. 1053”), Order No. 14712, rel. January 30, 2008; F.C. No. 945, Order No. 15986, rel. September 20, 2010.

 

[4]               F.C. No. 945 and F.C. No. 813, Application.

 

[5]               F.C. No. 1053, Order No. 14712, rel. January 30, 2008. 

 

[6]               F.C. No. 945 and F.C. No. 813, Application.

 

[7]               F.C. No. 945 and F.C. No. 813, Application, Proposed Tariff.

 

[8]               58 D.C. Reg. 7033-7035 (June 15, 2012).