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COVID-19 Related Incremental Costs and Offsets in D.C.: A Comprehensive Analysis

Strategic Insights

— 1 min read

Pepco, a major utility company in the District of Columbia, has tracked COVID-19 related incremental costs and offsets since March 11, 2020, as authorized by the Public Service Commission of the District of Columbia. According to the report submitted by Pepco to the Commission, the company has incurred significant costs due to the pandemic, including bad debt expense, lost late payment revenues, and lost connection and reconnection fees. The report provides a detailed breakdown of these costs, as well as the offsets related to travel, meals, and entertainment.

Key Takeaways:

  • Pepco has tracked COVID-19 related incremental costs and offsets since March 11, 2020, as authorized by the Public Service Commission of the District of Columbia.
  • The company has incurred significant costs due to the pandemic, including:

+ Bad debt expense: $8,761,083

+ Lost late payment revenues: $2,344,128

+ Lost reconnection fees: $616,691

  • Pepco has also tracked costs related to personal protective equipment, cleaning, and other expenses, totaling $4,536,227.
  • The company has allocated 43.32% of the total incremental costs to the District of Columbia, with a total allocation of $1,964,952.
  • Pepco has also reported a total cumulative amount of $12,745,078 as of the end of the reporting period.
  • The report includes detailed data on receivable aging, write-offs, and customer reconnections, as well as information on the number of customers reconnected.

Statistics:

  • Total incremental costs due to waiver of disconnections: $11,721,902
  • Total incremental PPE, cleaning, and other costs: $4,536,227
  • Total bad debt expense: $8,761,083
  • Total lost late payment fees: $2,344,128
  • Total lost reconnection fees: $616,691
  • Total incremental travel, meals, and entertainment savings: $941,066
  • Total District of Columbia allocation of incremental costs: $1,964,952
  • Total cumulative amount: $12,745,078

Sources:

  • Pepco's COVID-19 related incremental costs and offsets report
  • Public Service Commission of the District of Columbia order, GD-2020
  • "2020 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21" schedule

Note: This analysis is based solely on the provided report and sources.

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