Matthew K. Segers Assistant General Counsel

Office 202.428.1220 Fax 202.331.6767 pepco.com mksegers@pepcoholdings.com EP9628

701 Ninth Street NW Washington, DC 20068-0001

May 17, 2021

Andrew S. Johnston Executive Secretary Public Service Commission of Maryland William Donald Schaefer Tower 6 St. Paul Street, 16th Floor Baltimore, MD 21202-6808

Re: POR Annual Report

Dear Mr. Johnston:

Attached is Potomac Electric Power Company's (Pepco or the Company) annual report regarding the update of the Purchase of Receivable (POR) Supplier Discount Rate. This filing replaces the filing the Company made on April 29, 2021 (M/L#235043). After further discussions with Staff the Company has corrected the customer classes of the POR Discounts for the months of June through December 2020 in Attachment 2. All of the POR discounts were included in the Residential customer class, while a portion of the discounts related to the Type I customer class. Due to current coronavirus restrictions, this communication will be e-filed and hard copies will not be provided, per the Commission’s Operational Notice provided on March 16, 2020. The Company requests that the Commission accept these proposed POR Discount Rate revisions with the effective date of June 1, 2021.

As background, the Company implemented the POR supplier discount on October 1, 2010 as directed in the Commission’s Letter Order dated August 25, 2010. The Company’s policy for POR uncollectibles is to write off delinquent amounts after 120 days. The Supplier Discount Rate is derived based on the POR activity for the 12 months from January through December 2020.

Schedule 3 of the Supplier Tariff provides the proposed Discount Factors as well as a redline version. On May 7, 2014 in Mail Log #153026, RR-2799 the Commission directed Pepco to make future filings in accordance with the method described in the Commission’s letter Order of July 13, 2011 to Baltimore Gas and Electric Company. Schedule 3 was updated accordingly.

Attachment 1 is a summary showing the results of the Write-Offs, including Reinstatements, Late Payment Revenues, Interest and Reconciliation Factors, and Discount Rates expressed as a percentage of Third Party Supplier Revenues for Residential Service

ML# 235308

Andrew S. Johnston Page 2 May 17, 2021

Customers served under Schedules R and RTM; Non-Residential Type I and Type II Customers served under Schedules GS Non Demand, T, SL, TN, EV, and OL, and MGT LV II and MGT 3A II respectively; and Hourly Priced Customers served under schedules MGT LV III and MGT 3A III. As in the Company’s prior filings, the administrative factor and risk factor are zero.

Attachment 2 shows the detail by month and by customer type of the Billed Third-Party Supplier Revenues, POR Discount, Late Payment Revenues, Write-Offs, Over/(Under) Collected Amounts, and Interest on those amounts.

Attachment 3 provides the detailed calculation of the Interest and Reconciliation Factors. The Company proposes a Discount Rate of 0.3539% for Residential Customers served

under Schedules R and RTM, and a Discount Rate of 0.3168% for Type I Non-Residential Customers served under Schedules GS Non-Demand, T, SL, TN, EV, and OL. The Discount Rate calculation for Type II Non-Residential Customers and for Hourly Priced Service Customers based on data from the period January through December 2020 resulted in negative discounts. Therefore, the Company proposes a Discount Rate of 0.0000% for Non-Residential Type II Customers served under Schedules MGT LV II and MGT 3A II and a Discount Rate of 0.0000% for Hourly Priced Service Customers served under Schedules MGT LV III and MGT 3A III.

The Company respectfully requests that the Commission accept these proposed POR Discount Rate revisions with the effective date of June 1, 2021. Any questions concerning the Company’s POR Supplier Discount Rate filing may be directed to the undersigned. Sincerely, s/Matthew K. Segers Matthew K. Segers

Enclosure cc: All Parties of Record

Electric Supplier--P.S.C. Md. No. 2 MD

Date of Issue: April 29, 2021 Date Effective: June 1, 2021

ELECTRICITY SUPPLIER

COORDINATION TARIFF

IN

MARYLAND

Electric Supplier--P.S.C. Md. No. 2

MD Twenty-Fourth Revised Page No. i

Date of Issue: April 29, 2021 Date Effective: June 1, 2021

TABLE OF CONTENTS 1.0: DEFINITIONS/EXPLANATIONS OF ABBREVIATIONS ....................................... 1 2.0: GENERAL TERMS AND CONDITIONS ............................................................... 5 2.1 Scope and Purpose ................................................................................... 5 2.2 Electricity Supplier’s Responsibilities to Customers ................................... 5 2.3 Agreement to Govern................................................................................. 5 2.4 Recourse to the Commission ..................................................................... 5 2.5 FERC Jurisdiction ...................................................................................... 5 2.6 Electricity Supplier Obligations .................................................................. 5 2.7 Electricity Supplier and Company Obligations ........................................... 6 2.8 Control Area Services and Obligations ...................................................... 6 2.9 Communications and Data Exchange ........................................................ 7 2.10 Record Retention ....................................................................................... 7 2.11 Characteristics of Service .......................................................................... 7 2.12 Net Energy Metering .................................................................................. 7 3.0: UTILIZATION OF SCHEDULING COORDINATORS ........................................... 8

3.1 Participation Through a Scheduling Coordinator ....................................... 8 3.2 Designation of a Scheduling Coordinator ................................................... 8 3.3 Change of Scheduling Coordinator ............................................................ 8 3.4 Load Scheduling Through a Scheduling Coordinator ................................ 8 3.5 Primary Obligations of Electricity Supplier ................................................. 8

4.0: COMMENCEMENT AND TERMINATION OF COORDINATION SERVICES ...... 9

4.1 Application Process to Company ............................................................... 9 4.2 Commencement of Coordination Services ............................................... 10 4.3 Notice of Electricity Supplier Discontinuance to the Company ................. 10 4.4 Termination of Coordination Services ...................................................... 11 4.5 Effect of Termination ................................................................................ 11 4.6 Survival of Obligations ............................................................................. 11

5.0: CREDITWORTHINESS ...................................................................................... 12

5.1 Purpose and Intent .................................................................................. 12 5.2 Finding of Creditworthiness ..................................................................... 12 5.3 Credit Amount .......................................................................................... 12 5.4 Change in Financial Status ...................................................................... 12 5.5 Failure to Maintain Creditworthy Status ................................................... 13 5.6 No Endorsement of Electricity Supplier.................................................... 13

Electric Supplier--P.S.C. Md. No. 2

MD Twenty-Fourth Revised Page No. ii

Date of Date of Issue: April 29, 2021 Date Effective: June 1, 2021

6.0: NONCOMPLIANCE AND DEFAULT .................................................................. 14

6.1 Definition of Noncompliance .................................................................... 14 6.2 Events of Noncompliance ........................................................................ 14 6.3 Supplier Default ....................................................................................... 14 6.4 Cure and Default .................................................................................... 14a

7.0: CUSTOMER ENROLLMENT AND INFORMATION PROCESS FLOW ............. 15

7.1 Pre-enrollment Information ...................................................................... 15 7.2 Procedure to Formalize Selection of Electricity Supplier ......................... 15 7.3 Change of Electricity Supplier .................................................................. 16 7.4 Electricity Supplier Drop Processing by the Company ............................. 16 7.5 Assignment of Contract.. …………………………………………………….. 16 7.6 Customer Cancellation Request .............................................................. 16 7.7 Transaction Error Handling ...................................................................... 16 7.8 Customer Designation to Control ............................................................. 17 7.9 Customer Termination of Service at Existing Account ............................. 17 7.10 Supplier Discontinuation of Service ......................................................... 17 7.11 Effective Date of Discontinuance ............................................................. 17 7.12 Customer Number Change ...................................................................... 17

7.13 Full Requirements Service Provision ....................................................... 17 8.0: GENERAL LOAD OBLIGATION ALLOCATION METHODS .............................. 18

8.1 The Company’s Role ............................................................................... 18 8.2 Load Profiles ............................................................................................ 18 8.3 Use of Historical Load Information for Forecasting Customer Load

Obligations ............................................................................................... 18 8.4 Rounding to Whole Megawatts ................................................................ 18 8.5 System Losses ........................................................................................ 19 8.6 Unaccounted for Energy/Residual Load .................................................. 19

9.0: LOAD RECONCILIATION, CAPACITY, AND TRANSMISSION ACCOUNTING PROCESSES ............................................................................ 20

9.1 Capacity ................................................................................................... 20 9.2 Transmission ........................................................................................... 20 9.3 Load Forecasting ..................................................................................... 20 9.4 Load Scheduling ...................................................................................... 20 9.5 The Day-After Settlement ........................................................................ 21 9.6 The “60-Day” Settlement/Consumption Energy Imbalance ...................... 22 9.7 Settlement Beyond “60 Days” .................................................................. 23 9.8 Settlement Calculations ........................................................................... 23

Electric Supplier--P.S.C. Md. No. 2

MD Twenty-Fourth Revised Page No. iii

Date of Date of Issue: April 29, 2021 Date Effective: June 1, 2021

10.0: ACTIVE LOAD MANAGEMENT ......................................................................... 24 10.1 Demand Side Management DSM ............................................................ 24 10.2 DSM Operations ...................................................................................... 24 10.3 Ownership, Maintenance, and Operation of DSM Devices ...................... 24

11.0: PRICE RESPONSIVE DEMAND 11.1 Price Responsive Demand (PRD) Resource ........................................... 24 11.2 PRD Unforced Capacity Financial Credit Billing Line Item Transfer ........ 24 12.0: ELECTRICITY SUPPLIER CHARGES, BILLING AND PAYMENT .................... 25

12.1 Charges for Electricity Supplier Services ................................................. 25 12.2 Electricity Supplier Payment of Obligations to the Company ................... 25 12.3 Billing for Electricity Supplier’s Obligations to Other Parties .................... 26

13.0: RETAIL CUSTOMER BILLING AND PAYMENT COLLECTION ........................ 27

13.1 Billing Services Selection and Change .................................................... 27 13.2 Meter Reading Information ...................................................................... 27 13.3 Separate (Dual) Billing ............................................................................. 27 13.4 Company Consolidated Billing ................................................................. 28 13.5 Electricity Supplier Consolidated Billing ................................................. 29a 13.6 Billing and Payment Programs ............................................................... 29a 13.7 Taxes ..................................................................................................... 29b

14.0: COMPANY-SUPPLIED METERING SERVICES ................................................ 30

14.1 Meters ...................................................................................................... 30 14.2 Reading ................................................................................................... 30 14.3 Non-standard Metering ............................................................................ 30 14.4 Special Meter Reading ............................................................................ 30 14.5 Meter Testing ........................................................................................... 30

15.0: NON-UTILITY SUPPLIED METERING .............................................................. 32 15.1 Availability ................................................................................................ 32 16.0: SYSTEM OPERATION ....................................................................................... 33

16.1 Curtailment .............................................................................................. 33 16.2 Reasonable Efforts .................................................................................. 33 16.3 PJM Requirements .................................................................................. 33

17.0: CONFIDENTIALITY OF INFORMATION ............................................................ 34

17.1 Generally ................................................................................................. 34 17.2 Customer-Specific Information ................................................................. 34

Electric Supplier--P.S.C. Md. No. 2 MD Twenty-Fourth Revised Page No. iv

Date of Issue: April 29, 2021 Date Effective: June 1, 2021

18.0: DISPUTE RESOLUTION .................................................................................... 35

18.1 Informal Resolution of Disputes ............................................................... 35 18.2 Recourse ................................................................................................. 35

19.0: FORCE MAJEURE ............................................................................................. 36 20.0:REGULATORY AUTHORIZATIONS AND JURISDICTION .................................. 37 20.1 Compliance with Applicable Legal Authorities ......................................... 37 20.2 Change in Applicable Legal Authorities ................................................... 37 21.0:LIMITATION OF LIABILITY ................................................................................... 38

21.1 General Limitation of Liability ................................................................... 38 21.2 Limitation of Liability for Service Interruptions and Variations .................. 38 21.3 Additional Limitations of Liability in Connection with Competitive

Power Supply ........................................................................................... 38

22.0:MISCELLANEOUS PROVISIONS ......................................................................... 39 22.1 Notices ..................................................................................................... 39 22.2 No Prejudice of Rights ............................................................................. 39

Schedule 1: Charges for Electricity Supplier Services .................................................. 40 Schedule 2: Maryland Loss Factors ............................................................................. 42 Schedule 3: Discount Rate For Purchase of Receivables Program .............................. 43

Electric Supplier--P.S.C. Md. No. 2

MD Ninth Revised Page No. 43

Date of Issue: April 29, 2021 Date Effective: June 1, 2021

Schedule 3: Discount Rate For Purchase of Receivables Program

1) The initial (unadjusted) Discount Rate for Residential Service Customers served

under Schedules R, R-TM, and Pepco Maryland Electric and Non-Residential Customers Type I and Type II, served under Schedules GS, T, SL, TN, EV and OL, and MGT LV II and MGT 3A II respectively, and Hourly Priced Customers served under schedules MGT LV III and MGT 3A III, of the Retail Electric Service Tariff is calculated as follows: a) The Uncollectible Expense Component percent will be calculated by dividing

the estimated Electric Supplier uncollectible expenses associated with each rate schedule by the electricity revenues billed for all Electricity Suppliers for that rate schedule.

b) The Late Payment Revenue percent will be calculated by dividing the estimated Electric Supplier Late Payment Revenue associated with each rate schedule by the electricity revenues billed for all Electricity Suppliers for that rate schedule.

c) The Program Development and Operation Costs Component percent will be set at zero at this time.

d) The Risk Component percent will be set at zero at this time. e) The initial Discount Rate is derived by adding the Uncollectible Expense

Component (a), the Program Development Cost Component (c), and the Risk Component (d), and subtracting the Late Payment Revenue Component (b).

2) The Reconciliation Component is calculated on the Imbalance separately for

residential and non-residential customers. Imbalances are recorded in a balancing segment regulatory asset or regulatory liability and represent the differences between cumulative costs eligible for recovery and discount amounts for purchased receivables. During its disposition, an Imbalance earns interest at the same rate as is paid on customer deposits pursuant to Sections 20.30.01.04 and 20.30.02.04 of the Code of Maryland regulations as determined annually by the Public Service Commission. Such rate is adjusted for taxes, when the Imbalance represents an under-collection of costs to the Company. The Reconciliation Component rate is calculated by dividing the Imbalance, including interest earned or owed, separately for residential and non-residential customers by the estimated electricity revenues billed for all Electricity Suppliers for those rate schedules.

3) If there are unrecovered costs associated with the purchase of eligible Electricity

Supplier receivables and an insufficient number of Electricity Suppliers are using Company consolidated billing to support the recovery of those costs, the Company is permitted to impose a charge on Electricity Suppliers to recover such costs.

4) The Discount Rate (after the first year of service) is derived by updating the initial

rate calculated above and adding the Reconciliation component.

Electric Supplier--P.S.C. Md. No. 2

MD Ninth Revised Page No. 44

Date of Issue: April 29, 2021 Date Effective: June 1, 2021

5) The Discount Rates are as follows:

Rate Schedule Discount Rate

Residential – Schedules R, R-TM 0.3539% Type I – Schedules GS, T, SL, TN, EV and OL 0.3168% Type II – Schedules MGT LV II and MGT 3A II 0.0000% Hourly Priced – Schedules MGT LV III and MGT 3A III 0.0000%

REDLINE

Electric Supplier--P.S.C. Md. No. 2

MD

Date of Issue: May 28, 2020 April 29, 2021 Date Effective: June 1, 20202021

ELECTRICITY SUPPLIER

COORDINATION TARIFF

IN

MARYLAND

Electric Supplier--P.S.C. Md. No. 2

MD Twenty-Third Fourth Revised Page No. i

Date of Issue: May 28, 2020 April 29, 2021 Date Effective: June 1, 20202021

TABLE OF CONTENTS 1.0: DEFINITIONS/EXPLANATIONS OF ABBREVIATIONS ....................................... 1 2.0: GENERAL TERMS AND CONDITIONS ............................................................... 5 2.1 Scope and Purpose ................................................................................... 5 2.2 Electricity Supplier’s Responsibilities to Customers ................................... 5 2.3 Agreement to Govern................................................................................. 5 2.4 Recourse to the Commission ..................................................................... 5 2.5 FERC Jurisdiction ...................................................................................... 5 2.6 Electricity Supplier Obligations .................................................................. 5 2.7 Electricity Supplier and Company Obligations ........................................... 6 2.8 Control Area Services and Obligations ...................................................... 6 2.9 Communications and Data Exchange ........................................................ 7 2.10 Record Retention ....................................................................................... 7 2.11 Characteristics of Service .......................................................................... 7 2.12 Net Energy Metering .................................................................................. 7 3.0: UTILIZATION OF SCHEDULING COORDINATORS ........................................... 8

3.1 Participation Through a Scheduling Coordinator ....................................... 8 3.2 Designation of a Scheduling Coordinator ................................................... 8 3.3 Change of Scheduling Coordinator ............................................................ 8 3.4 Load Scheduling Through a Scheduling Coordinator ................................ 8 3.5 Primary Obligations of Electricity Supplier ................................................. 8

4.0: COMMENCEMENT AND TERMINATION OF COORDINATION SERVICES ...... 9

4.1 Application Process to Company ............................................................... 9 4.2 Commencement of Coordination Services ............................................... 10 4.3 Notice of Electricity Supplier Discontinuance to the Company ................. 10 4.4 Termination of Coordination Services ...................................................... 11 4.5 Effect of Termination ................................................................................ 11 4.6 Survival of Obligations ............................................................................. 11

5.0: CREDITWORTHINESS ...................................................................................... 12

5.1 Purpose and Intent .................................................................................. 12 5.2 Finding of Creditworthiness ..................................................................... 12 5.3 Credit Amount .......................................................................................... 12 5.4 Change in Financial Status ...................................................................... 12 5.5 Failure to Maintain Creditworthy Status ................................................... 13 5.6 No Endorsement of Electricity Supplier.................................................... 13

Electric Supplier--P.S.C. Md. No. 2

MD Twenty-Third Fourth Revised Page No. ii

Date of Date of Issue: May 28, 2020April 29, 2021 Date Effective: June 1, 20202021

6.0: NONCOMPLIANCE AND DEFAULT .................................................................. 14

6.1 Definition of Noncompliance .................................................................... 14 6.2 Events of Noncompliance ........................................................................ 14 6.3 Supplier Default ....................................................................................... 14 6.4 Cure and Default .................................................................................... 14a

7.0: CUSTOMER ENROLLMENT AND INFORMATION PROCESS FLOW ............. 15

7.1 Pre-enrollment Information ...................................................................... 15 7.2 Procedure to Formalize Selection of Electricity Supplier ......................... 15 7.3 Change of Electricity Supplier .................................................................. 16 7.4 Electricity Supplier Drop Processing by the Company ............................. 16 7.5 Assignment of Contract.. …………………………………………………….. 16 7.6 Customer Cancellation Request .............................................................. 16 7.7 Transaction Error Handling ...................................................................... 16 7.8 Customer Designation to Control ............................................................. 17 7.9 Customer Termination of Service at Existing Account ............................. 17 7.10 Supplier Discontinuation of Service ......................................................... 17 7.11 Effective Date of Discontinuance ............................................................. 17 7.12 Customer Number Change ...................................................................... 17

7.13 Full Requirements Service Provision ....................................................... 17 8.0: GENERAL LOAD OBLIGATION ALLOCATION METHODS .............................. 18

8.1 The Company’s Role ............................................................................... 18 8.2 Load Profiles ............................................................................................ 18 8.3 Use of Historical Load Information for Forecasting Customer Load

Obligations ............................................................................................... 18 8.4 Rounding to Whole Megawatts ................................................................ 18 8.5 System Losses ........................................................................................ 19 8.6 Unaccounted for Energy/Residual Load .................................................. 19

9.0: LOAD RECONCILIATION, CAPACITY, AND TRANSMISSION ACCOUNTING PROCESSES ............................................................................ 20

9.1 Capacity ................................................................................................... 20 9.2 Transmission ........................................................................................... 20 9.3 Load Forecasting ..................................................................................... 20 9.4 Load Scheduling ...................................................................................... 20 9.5 The Day-After Settlement ........................................................................ 21 9.6 The “60-Day” Settlement/Consumption Energy Imbalance ...................... 22 9.7 Settlement Beyond “60 Days” .................................................................. 23 9.8 Settlement Calculations ........................................................................... 23

Electric Supplier--P.S.C. Md. No. 2

MD Twenty-Third Fourth Revised Page No. iii

Date of Date of Issue: May 28, 2020April 29, 2021 Date Effective: June 1, 20202021

10.0: ACTIVE LOAD MANAGEMENT ......................................................................... 24 10.1 Demand Side Management DSM ............................................................ 24 10.2 DSM Operations ...................................................................................... 24 10.3 Ownership, Maintenance, and Operation of DSM Devices ...................... 24

11.0: PRICE RESPONSIVE DEMAND 11.1 Price Responsive Demand (PRD) Resource ........................................... 24 11.2 PRD Unforced Capacity Financial Credit Billing Line Item Transfer ........ 24 12.0: ELECTRICITY SUPPLIER CHARGES, BILLING AND PAYMENT .................... 25

12.1 Charges for Electricity Supplier Services ................................................. 25 12.2 Electricity Supplier Payment of Obligations to the Company ................... 25 12.3 Billing for Electricity Supplier’s Obligations to Other Parties .................... 26

13.0: RETAIL CUSTOMER BILLING AND PAYMENT COLLECTION ........................ 27

13.1 Billing Services Selection and Change .................................................... 27 13.2 Meter Reading Information ...................................................................... 27 13.3 Separate (Dual) Billing ............................................................................. 27 13.4 Company Consolidated Billing ................................................................. 28 13.5 Electricity Supplier Consolidated Billing ................................................. 29a 13.6 Billing and Payment Programs ............................................................... 29a 13.7 Taxes ..................................................................................................... 29b

14.0: COMPANY-SUPPLIED METERING SERVICES ................................................ 30

14.1 Meters ...................................................................................................... 30 14.2 Reading ................................................................................................... 30 14.3 Non-standard Metering ............................................................................ 30 14.4 Special Meter Reading ............................................................................ 30 14.5 Meter Testing ........................................................................................... 30

15.0: NON-UTILITY SUPPLIED METERING .............................................................. 32 15.1 Availability ................................................................................................ 32 16.0: SYSTEM OPERATION ....................................................................................... 33

16.1 Curtailment .............................................................................................. 33 16.2 Reasonable Efforts .................................................................................. 33 16.3 PJM Requirements .................................................................................. 33

17.0: CONFIDENTIALITY OF INFORMATION ............................................................ 34

17.1 Generally ................................................................................................. 34 17.2 Customer-Specific Information ................................................................. 34

Electric Supplier--P.S.C. Md. No. 2 MD Twenty-Third Fourth Revised Page No. iv

Date of Issue: May 28, 2020April 29, 2021 Date Effective: June 1, 2020 2021

Formatted: Justified, Indent: Left: 0", Hanging: 1", Border:Top: (Single solid line, Auto, 2.25 pt Line width), Tab stops: 6.5", Right + Not at 3" + 6"

18.0: DISPUTE RESOLUTION .................................................................................... 35

18.1 Informal Resolution of Disputes ............................................................... 35 18.2 Recourse ................................................................................................. 35

19.0: FORCE MAJEURE ............................................................................................. 36 20.0:REGULATORY AUTHORIZATIONS AND JURISDICTION .................................. 37 20.1 Compliance with Applicable Legal Authorities ......................................... 37 20.2 Change in Applicable Legal Authorities ................................................... 37 21.0:LIMITATION OF LIABILITY ................................................................................... 38

21.1 General Limitation of Liability ................................................................... 38 21.2 Limitation of Liability for Service Interruptions and Variations .................. 38 21.3 Additional Limitations of Liability in Connection with Competitive

Power Supply ........................................................................................... 38

22.0:MISCELLANEOUS PROVISIONS ......................................................................... 39 22.1 Notices ..................................................................................................... 39 22.2 No Prejudice of Rights ............................................................................. 39

Schedule 1: Charges for Electricity Supplier Services .................................................. 40 Schedule 2: Maryland Loss Factors ............................................................................. 42 Schedule 3: Discount Rate For Purchase of Receivables Program .............................. 43

Electric Supplier--P.S.C. Md. No. 2

MD Eighth Ninth Revised Page No. 43

Date of Issue: May 28, 2020April 29, 2021 Date Effective: June 1, 20202021

Schedule 3: Discount Rate For Purchase of Receivables Program

1) The initial (unadjusted) Discount Rate for Residential Service Customers served

under Schedules R, R-TM, and Pepco Maryland Electric and Non-Residential Customers Type I and Type II, served under Schedules GS, T, SL, TN, EV and OL, and MGT LV II and MGT 3A II respectively, and Hourly Priced Customers served under schedules MGT LV III and MGT 3A III, of the Retail Electric Service Tariff is calculated as follows: a) The Uncollectible Expense Component percent will be calculated by dividing

the estimated Electric Supplier uncollectible expenses associated with each rate schedule by the electricity revenues billed for all Electricity Suppliers for that rate schedule.

b) The Late Payment Revenue percent will be calculated by dividing the estimated Electric Supplier Late Payment Revenue associated with each rate schedule by the electricity revenues billed for all Electricity Suppliers for that rate schedule.

c) The Program Development and Operation Costs Component percent will be set at zero at this time.

d) The Risk Component percent will be set at zero at this time. e) The initial Discount Rate is derived by adding the Uncollectible Expense

Component (a), the Program Development Cost Component (c), and the Risk Component (d), and subtracting the Late Payment Revenue Component (b).

2) The Reconciliation Component is calculated on the Imbalance separately for

residential and non-residential customers. Imbalances are recorded in a balancing segment regulatory asset or regulatory liability and represent the differences between cumulative costs eligible for recovery and discount amounts for purchased receivables. During its disposition, an Imbalance earns interest at the same rate as is paid on customer deposits pursuant to Sections 20.30.01.04 and 20.30.02.04 of the Code of Maryland regulations as determined annually by the Public Service Commission. Such rate is adjusted for taxes, when the Imbalance represents an under-collection of costs to the Company. The Reconciliation Component rate is calculated by dividing the Imbalance, including interest earned or owed, separately for residential and non-residential customers by the estimated electricity revenues billed for all Electricity Suppliers for those rate schedules.

3) If there are unrecovered costs associated with the purchase of eligible Electricity

Supplier receivables and an insufficient number of Electricity Suppliers are using Company consolidated billing to support the recovery of those costs, the Company is permitted to impose a charge on Electricity Suppliers to recover such costs.

4) The Discount Rate (after the first year of service) is derived by updating the initial

rate calculated above and adding the Reconciliation component.

Electric Supplier--P.S.C. Md. No. 2

MD Eighth Ninth Revised Page No. 44

Date of Issue: May 28, 2020April 29, 2021 Date Effective: June 1, 20202021

5) The Discount Rates are as follows:

Rate Schedule Discount Rate

Residential – Schedules R, R-TM 0.1407 .3539% Type I – Schedules GS, T, SL, TN, EV and OL 0.0101 .3168% Type II – Schedules MGT LV II and MGT 3A II 0.0000% Hourly Priced – Schedules MGT LV III and MGT 3A III 0.0000%

Attachments 1 through 3

Potomac Electric Power CompanyMaryland

Purchase of ReceivablesDiscount Rate

January through December 2020

Attachment 1

RESIDENTIAL - Schedules R and

RTM

TYPE I - Schedules GS Non-Demand, T, SL, TN,

EV, and OL

TYPE II - Schedules MGT LV

II and MGT 3A II

Hourly Priced - Schedules MGT LV III and MGT 3A III

Write-Offs 0.7284% 0.3095% 0.0923% 0.0653%

Late Payment Revenues 0.0766% 0.0969% 0.0737% 0.0743%

Net Write-Offs 0.6518% 0.2126% 0.0186% -0.0090%

Interest Factor -0.0018% 0.0008% -0.0007% -0.0006%

Reconciliation Factor -0.2961% 0.1034% -0.6532% -2.0428%

Discount 0.3539% 0.3168% -0.6353% -2.0524%

Discount (zeroed) 0.3539% 0.3168% 0.0000% 0.0000%

Payment Factor 99.6461% 99.6832% 100.0000% 100.0000%

Attachment 2

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 TOTAL

Electric Revenues Billed

Residential (R, R-TM) 10,556,525.12 8,908,590.34 8,280,287.56 7,234,030.63 6,554,081.64 8,236,028.12 11,736,007.20 11,854,842.88 9,259,624.73 6,550,182.48 6,183,731.39 8,070,553.89 103,424,485.98$ Type I (GS, T, SL, TN, EV, OL) 1,225,630.93 1,229,766.40 955,356.75 760,219.79 856,780.38 823,931.46 962,336.73 945,270.28 72,679.94 804,972.80 524,956.18 931,022.23 10,092,923.87 Type II (MGT LV II, MGT 3A II) 12,833,381.34 11,307,510.36 10,140,253.62 10,027,095.21 8,607,017.31 10,753,049.29 13,676,219.11 13,812,391.58 12,282,527.39 10,872,817.93 8,499,916.18 10,180,132.24 132,992,311.56 HPS (MGT LV III, MGT 3A III, GT LV, GT 3A, GT 3B, TM-RT)

6,645,492.01 5,623,703.64 5,486,758.83 4,888,237.72 5,509,577.63 5,220,560.19 5,825,124.79 6,219,699.85 6,239,006.49 5,701,964.92 4,370,731.25 5,623,564.72 67,354,422.04

Total 31,261,029.40$ 27,069,570.74$ 24,862,656.76$ 22,909,583.35$ 21,527,456.96$ 25,033,569.06$ 32,199,687.83$ 32,832,204.59$ 27,853,838.55$ 23,929,938.13$ 19,579,335.00$ 24,805,273.08$ 313,864,143.45$

POR Discount

Residential (R, R-TM) (72,727.20)$ (61,339.40)$ (57,251.38)$ (49,820.95)$ (45,487.50)$ (11,660.00)$ (16,505.41)$ (16,705.85)$ (13,035.85)$ (9,211.46)$ (8,578.06)$ (11,368.28)$ (373,691.34)$ Type I (GS, T, SL, TN, EV, OL) (0.76) (0.80) (0.71) (1.40) - (76.34) (91.02) (89.82) (150.69) (73.97) (110.81) (146.46) (742.78) Type II (MGT LV II, MGT 3A II) - - - - - - - - - - - HPS (MGT LV III, MGT 3A III, GT LV, GT 3A, GT 3B, TM-RT)

- - - - - - - - - - - - -

Total (72,727.96)$ (61,340.20)$ (57,252.09)$ (49,822.35)$ (45,487.50)$ (11,736.34)$ (16,596.43)$ (16,795.67)$ (13,186.54)$ (9,285.43)$ (8,688.87)$ (11,514.74)$ (374,434.12)$

Net Electric Revenues Billed

Residential (R, R-TM) 10,483,797.92$ 8,847,250.94$ 8,223,036.18$ 7,184,209.68$ 6,508,594.14$ 8,224,368.12$ 11,719,501.79$ 11,838,137.03$ 9,246,588.88$ 6,540,971.02$ 6,175,153.33$ 8,059,185.61$ 103,050,794.64$ Type I (GS, T, SL, TN, EV, OL) 1,225,630.17 1,229,765.60 955,356.04 760,218.39 856,780.38 823,855.12 962,245.71 945,180.46 72,529.25 804,898.83 524,845.37 930,875.77 10,092,181.09 Type II (MGT LV II, MGT 3A II) 12,833,381.34 11,307,510.36 10,140,253.62 10,027,095.21 8,607,017.31 10,753,049.29 13,676,219.11 13,812,391.58 12,282,527.39 10,872,817.93 8,499,916.18 10,180,132.24 132,992,311.56 HPS (MGT LV III, MGT 3A III, GT LV, GT 3A, GT 3B, TM-RT)

6,645,492.01 5,623,703.64 5,486,758.83 4,888,237.72 5,509,577.63 5,220,560.19 5,825,124.79 6,219,699.85 6,239,006.49 5,701,964.92 4,370,731.25 5,623,564.72 67,354,422.04

Total 31,188,301.44$ 27,008,230.54$ 24,805,404.67$ 22,859,761.00$ 21,481,969.46$ 25,021,832.72$ 32,183,091.40$ 32,815,408.92$ 27,840,652.01$ 23,920,652.70$ 19,570,646.13$ 24,793,758.34$ 313,489,709.33$

Late Fee Revenues

Residential (R, R-TM) (31,519.10)$ (31,391.31)$ (13,475.52)$ -$ -$ -$ (2,099.09)$ (733.74)$ -$ -$ -$ -$ (79,218.76)$ Type I (GS, T, SL, TN, EV, OL) (3,659.38) (4,333.36) (1,554.75) - - - (172.12) (58.51) - - - - (9,778.12) Type II (MGT LV II, MGT 3A II) (38,317.13) (39,844.36) (16,502.49) - - - (2,446.10) (854.90) - - - - (97,964.98) HPS (MGT LV III, MGT 3A III, GT LV, GT 3A, GT 3B, TM-RT) (19,841.75) (19,816.30) (8,929.29) - - - (1,041.87) (384.96) - - - -

(50,014.17)

Total (93,337.36)$ (95,385.33)$ (40,462.05)$ -$ -$ -$ (5,759.18)$ (2,032.11)$ -$ -$ -$ -$ (236,976.03)$

Write Offs

Residential (R, R-TM) 137,412.62$ 97,529.24$ 29,357.82$ (26,124.19)$ (20,542.15)$ (15,194.69)$ (8,623.38)$ (4,374.35)$ (6,654.98)$ (14,118.97)$ 373,347.03$ 211,322.26$ 753,336.26$ Type I (GS, T, SL, TN, FV, OL) 9,961.85 3,296.40 1,479.63 227.11 602.89 (656.07) 11,049.19 1,730.21 (778.85) 142.76 1,474.87 2,706.45 31,236.44 Type II (MGT LV II, MGT 3A II) 14,028.17 43,405.71 1,528.98 6,481.98 9,769.96 (17,892.90) 820.98 32,487.63 (2,409.49) 15,995.43 15,204.24 3,306.19 122,726.88 HPS (MGT LV III, MGT 3A III, GT LV, GT 3A, GT 3B, TM-RT) 1,355.14 42,639.55 - - - - - - - - - - 43,994.69

Total 162,757.78$ 186,870.90$ 32,366.43$ (19,415.10)$ (10,169.30)$ (33,743.66)$ 3,246.79$ 29,843.49$ (9,843.32)$ 2,019.22$ 390,026.14$ 217,334.90$ 951,294.27$

Potomac Electric Power Company - MarylandPurchase of Receivable Data

January through December 2020

Attachment 2

Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 TOTAL

Potomac Electric Power Company - MarylandPurchase of Receivable Data

January through December 2020

Over / (Under) Collection(2)

Residential (R, R-TM) 602.29$ (33,166.32) (4,798.53)$ 41,369.08$ 75,945.14$ 66,029.65$ 26,854.69$ 27,227.88$ 21,813.94$ 19,690.83$ 23,330.43$ (364,768.97)$ (99,869.89)$ Type I (GS, T, SL, TN, FV, OL) 3,671.50 (6,301.71) 1,037.76 75.83 (225.71) (602.89) 732.41 (10,786.05) (1,581.88) 929.54 (68.79) (1,364.06) (14,484.05) Type II (MGT LV II, MGT 3A II) 37,917.33 24,288.96 (3,561.35) 14,973.51 (6,481.98) (9,769.96) 17,892.90 1,625.12 (31,632.73) 2,409.49 (15,995.43) (15,204.24) 16,461.62 HPS (MGT LV III, MGT 3A III, GT LV, GT 3A, GT 3B, TM-RT)

20,153.58 18,486.61 (22,823.25) 8,929.29 - - - 1,041.87 384.96 - - - 26,173.06

Total 62,344.70$ 3,307.54$ (30,145.37)$ 65,347.71$ 69,237.45$ 55,656.80$ 45,480.00$ 19,108.82$ (11,015.71)$ 23,029.86$ 7,266.21$ (381,337.27)$ (71,719.26)$

Cumulative Over / (Under) Collection

Residential (R, R-TM) 602.29$ (32,564.03)$ (37,362.56)$ 4,006.52$ 79,951.66$ 145,981.31$ 172,836.00$ 200,063.88$ 221,877.82$ 241,568.65$ 264,899.08$ (99,869.89)$ Type I (GS, T, SL, TN, FV, OL) 3,671.50 (2,630.21) (1,592.45) (1,516.62) (1,742.33) (2,345.22) (1,612.81) (12,398.86) (13,980.74) (13,051.20) (13,119.99) (14,484.05) Type II (MGT LV II, MGT 3A II) 37,917.33 62,206.29 58,644.94 73,618.45 67,136.47 57,366.51 75,259.41 76,884.53 45,251.80 47,661.29 31,665.86 16,461.62 HPS (MGT LV III, MGT 3A III, GT LV, GT 3A, GT 3B, TM-RT)

20,153.58 38,640.19 15,816.94 24,746.23 24,746.23 24,746.23 24,746.23 25,788.10 26,173.06 26,173.06 26,173.06 26,173.06

Total 62,344.70$ 65,652.24$ 35,506.87$ 100,854.58$ 170,092.03$ 225,748.83$ 271,228.83$ 290,337.65$ 279,321.94$ 302,351.80$ 309,618.01$ (71,719.26)$

Interest (1)

Residential (R, R-TM) 88.88$ 0.83$ (45.05)$ (51.68)$ 5.54$ 110.60$ 201.94$ 239.09$ 276.76$ 306.93$ 334.17$ 366.44$ 1,834.45$ Type I (GS, T, SL, TN, FV, OL) 0.64 5.08 (3.64) (2.20) (2.10) (2.41) (3.24) (2.23) (17.15) (19.34) (18.05) (18.15) (82.79) Type II (MGT LV II, MGT 3A II) 1.53 52.45 86.05 81.13 101.84 92.87 79.36 104.11 106.36 62.60 65.93 43.80 878.03 HPS (MGT LV III, MGT 3A III, GT LV, GT 3A, GT 3B, TM-RT) - 27.88 53.45 21.88 34.23 34.23 34.23 34.23 35.67 36.21 36.21 36.21

384.43

Total 91.05$ 86.24$ 90.81$ 49.13$ 139.51$ 235.29$ 312.29$ 375.20$ 401.64$ 386.40$ 418.26$ 428.30$ 3,014.12$

(1) Pursuant to Sections 20.30.01.04 and 20.30.02.04 of the Code of Maryland Regulations, the PSC has determined that

1.66%

(2) Over/(under) collection from December 2019; not included in prior year filing

Effective January 1, 2020

Pepco - Maryland Purchase of Receivables

Reconciliation and Interest Factor

Attachment 3

RESIDENTIAL - Schedules R and

RTM

TYPE I - Schedules GS Non-Demand, T, SL, TN,

EV, and OL

TYPE II - Schedules MGT LV II

and MGT 3A II

Hourly Priced - Schedules MGT LV III

and MGT 3A III

1.1 POR Discount - 1st Filing 1,183,302.37 70,152.12 672,706.68 2,669.96 1.2 POR Discount - 2nd Filing 812,294.51 43,097.66 290,680.72 71,680.64 1.3 POR Discount - 3rd Filing 238,531.51 29,625.49 1,148.80 447,514.94 1.4 POR Discount - 4th Filing 1,211,600.70 86,243.13 91,274.20 303,547.68 1.5 POR Discount - 5th Filing 2,601,425.82 97,730.61 337,388.64 7.25 1.6 POR Discount - 6th Filing 2,335,016.65 24,342.83 103,172.38 - 1.7 POR Discount - 7th Filing 1,510,766.77 - - - 1.8 POR Discount - 8th Filing - 2018 761,897.07 - - - 1.8 POR Discount - 8th Filing - 2019 789,585.41 - - - 1.9 POR Discount - 9th Filing - 2020 373,691.34 742.78 - -

2.1 Write-Offs - 1st Filing 388,612.60 38,111.79 374,888.79 56,821.59 2.2 Write-Offs - 2nd Filing 908,421.93 55,517.67 104,039.23 249,098.28 2.3 Write-Offs - 3rd Filing 1,324,886.18 81,078.00 310,156.93 34,164.02 2.4 Write-Offs - 4th Filing 2,548,223.90 87,528.31 396,381.06 - 2.5 Write-Offs - 5th Filing 2,749,041.49 62,577.41 359,057.71 - 2.6 Write-Offs - 6th Filing 4,039,169.35 108,733.05 300,557.03 55,227.78 2.7 Write-Offs - 7th Filing 2,275,738.98 94,365.63 372,549.05 7,289.43 2.8 Write-Offs - 8th Filing - 2018 1,235,976.11 65,185.13 131,325.25 10,322.59 2.8 Write-Offs - 8th Filing - 2019 916,247.99 51,848.86 73,402.29 15,472.80 2.9 Write-Offs - 9th Filing - 2020 753,336.26 31,236.44 122,726.88 43,994.69

3.5 Late Payment Fees - 5th Filing 1,119,275.30 74,626.71 468,187.55 138,976.61 3.6 Late Payment Fees - 6th Filing 1,761,130.99 97,036.97 354,759.18 220,558.78 3.7 Late Payment Fees - 7th Filing 1,463,092.48 78,646.47 259,510.11 136,464.05 3.8 Late Payment Fees - 8th Filing - 2018 825,179.72 64,228.44 433,840.01 206,872.73 3.8 Late Payment Fees - 8th Filing - 2019 396,416.29 41,343.57 333,970.24 264,014.37 3.9 Late Payment Fees - 9th Filing - 2020 79,218.76 9,778.12 97,964.98 50,014.17

4.1 Interest Expense/(Revenue) - 1st Filing 28,865.86 1,210.83 15,416.36 (1,030.11) 4.2 Interest Expense/(Revenue) - 2nd Filing 10,886.59 (29.11) (14,158.18) (10,922.82) 4.3 Interest Expense/(Revenue) - 3rd Filing (49,267.93) (1,984.45) (11,672.71) 9,488.34 4.4 Interest Expense/(Revenue) - 4th Filing (744.25) (10.45) (142.41) 306.59 4.5 Interest Expense/(Revenue) - 5th Filing (460.92) 12.36 (142.77) (18.88) 4.6 Interest Expense/(Revenue) - 6th Filing (6,823.31) (307.04) (1,166.78) (434.90) 4.7 Interest Expense/(Revenue) - 7th Filing 4,434.61 1.65 (81.32) 513.64 4.8 Interest Expense/(Revenue) - 8th Filing - 2018 (2,056.51) (354.51) (872.85) 557.97 4.8 Interest Expense/(Revenue) - 8th Filing - 2019 (871.38) (1,177.54) 7,938.73 8,068.27 4.9 Interest Expense/(Revenue) - 9th Filing - 2020 1,887.71 (133.02) 875.00 384.43

4 Over/(Under) Collection (1-2+3) 308,621.36$ 38,641.33$ 895,512.34$ 1,376,842.52$

5 Amortization of RM54 - Accelerated Supplier Switching Costs 2,342.66$ 49,076.29$ 26,837.99$ 911.38$

6 Net Over/(Under) Collection (4-5) 306,278.70$ (10,434.96)$ 868,674.35$ 1,375,931.14$

7 Interest 1,834.45$ (82.79)$ 878.03$ 384.43$

8 Electric Revenues Billed (01/20 -12/20) 103,424,486$ 10,092,924$ 132,992,312$ 67,354,422$

9 Reconciliation Factor (6/8) 0.2961% -0.1034% 0.6532% 2.0428%

10 Interest Factor (7/8) 0.0018% -0.0008% 0.0007% 0.0006%