Summary
This 8-K filing from Exelon Corporation announces an interim order from the Illinois Commerce Commission (ICC) regarding Commonwealth Edison Company's (ComEd) residential delivery service tariffs. Effective May 1, 2002, the order sets new delivery rates for residential customers who choose a new electricity supplier. Importantly, traditional bundled rates for customers retaining ComEd as their supplier will remain frozen through 2004, and business customer rates are unaffected by this interim order. Exelon, through ComEd, views the interim order's potential revenue impact in 2002 as not material. The interim order establishes a $1.515 billion annual jurisdictional distribution revenue requirement and an 8.99% weighted average cost of capital, reflecting an agreement with major parties. While approving the majority of requested costs, the order acknowledges an agreement for an audit of ComEd's test year expenditures to further analyze the reasonableness of past investments. ComEd is confident the audit will validate its expenditures, noting significant improvements in service reliability resulting from these investments. A final order is anticipated in April 2003.
Key Highlights
- 1Illinois Commerce Commission (ICC) issued an interim order on ComEd's residential delivery service tariffs, effective May 1, 2002.
- 2New delivery rates apply to residential customers choosing a new electricity supplier.
- 3Traditional bundled rates for customers remaining with ComEd are frozen through 2004.
- 4Business customer delivery rates are not impacted by this interim order.
- 5Potential revenue impact for 2002 from the interim order is deemed not material.
- 6Order approves a $1.515 billion annual distribution revenue requirement and an 8.99% weighted average cost of capital.
- 7An audit of ComEd's test year expenditures will be conducted, with ComEd expressing confidence in the findings.
- 8Final order expected in April 2003, which will also address non-residential delivery rates.