NRG Energy has filed exceptions to a recommended decision issued by two Pennsylvania ALJs which would deny a proposal from NRG Energy to re-allocate approximately $100 million in costs at PECO which NRG argued are attributable to electricity default service and thus should be allocated to generation rates rather than nonbypassable distribution rates, as is done currently

As previously reported, NRG proposed reallocating approximately $101 million dollars of costs from PECO’s residential distribution customers to those PECO customers receiving default service. Specifically, NRG's proposal would allocate to the Price to Compare a portion of PECO’s fixed costs related to customer service expenses (customer assistance, information advertisement, and miscellaneous customer service), sales expenses (demonstrating & selling), A&G expenses (administrative salaries, office supplies & expense, outside services employed property insurance, injuries & damages, employee pensions & benefits, regulatory commission, duplicate charges – credit, miscellaneous general, and maintenance of general plant), and depreciation & amortization expense (relating to intangible plant, general plant, and common plant).

NRG argued that such a reallocation would ensure that PECO’s distribution charges more accurately reflect the costs of providing residential distribution service.

The ALJs said in the recommended decision on a PECO rate case that, "We disagree. We find that PECO is properly allocating costs for the provision of default service."

The ALJs' reasoning is more fully discussed in EnergyChoiceMatters.com's story on the RD

By their nature, NRG's exceptions reiterate evidence and arguments raised in testimony and in its briefs in the case. A full discussion of NRG's arguments for its proposed allocation methodology can be found in EnergyChoiceMatters.com's prior story

NRG's exceptions filed with the PUC can be found here

Docket R-2018-3000164

Tags:
Pennsylvania   PECO   Default Service  

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