Bill Stabilization Adjustment Audit Report
Pepco DC | 2023
In response to stakeholders’ concerns around Pepco DC’s Bill Stabilization Adjustment (“BSA”, a full decoupling mechanism) and its associated growing deferral balance, Atrium was engaged to perform an evaluation of the processes, procedures, mechanics, and internal controls surrounding Pepco DC’s BSA. The audit period extended from September 2018 through March 2022, fully encompassing the period associated with the COVID19 pandemic. Pepco’s decoupling mechanism insulated utility revenue from changes in sales volume, weather, and economic activity, based on revenue forecasts developed prior to the pandemic. The mechanism capped monthly recoveries at 10 percent of the total distribution charge, with any excess or shortfall captured in an associated deferral account.
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