What is the main purpose of the FERC application filed by ComEd and Exelon Generation?

The main purpose is to seek FERC approval for ComEd's proposed competitive auction process to acquire wholesale electric power, capacity, and ancillary services. The application also seeks FERC's assurance that if Exelon Generation is selected as a winning bidder in this auction, the resulting power supply agreements will be considered fair and acceptable under federal regulations.

Why is ComEd seeking approval for a competitive auction process?

ComEd is seeking approval for a competitive auction process to secure its power supply for Illinois customers after its current contract expires on December 31, 2006. The goal is to obtain electricity at the lowest possible market price, ensuring ComEd can meet its Provider of Last Resort (POLR) obligations efficiently and pass those costs directly to customers without any profit margin.

What is the urgency behind the requested expedited FERC order?

The urgency stems from the need to coordinate with the Illinois Commerce Commission's (ICC) decision-making process. ComEd requested an expedited FERC order by December 15, 2005, to ensure that the ICC, which has a deadline of January 24, 2006, can consider FERC's stance on the proposed auction when making its own determination. This coordination is vital for the smooth implementation of the procurement plan.

What are the potential implications for Exelon Generation if it participates in the auction?

If Exelon Generation participates and is selected as a winning bidder in the auction, the FERC's approval of the proposed agreements would mean that the terms under which it sells power to ComEd are deemed acceptable and compliant with federal law. This provides regulatory certainty for such transactions.

EXC 8-K SEC Disclosure — Oct 18, 2005

Summary

This 8-K filing from Exelon Corporation details critical regulatory actions concerning Commonwealth Edison Company's (ComEd) efforts to secure power supply for its Illinois customers beyond December 31, 2006. ComEd has filed an application with the Federal Energy Regulatory Commission (FERC) seeking approval for its proposed competitive auction procurement process, designed to acquire energy, capacity, and ancillary services at the lowest possible cost. This application is crucial for ensuring that ComEd can meet its Provider of Last Resort (POLR) obligations and that the planned auction aligns with federal regulatory principles for competitive wholesale power procurement. The filing highlights the urgency of the situation, as ComEd requested an expedited FERC order by December 15, 2005, to coordinate with the Illinois Commerce Commission's (ICC) decision deadline of January 24, 2006. The primary objective is to ensure that the procurement process is deemed fair, open, and compliant with federal law, particularly referencing prior FERC decisions like Allegheny Energy and Boston Edison. The outcome of these FERC and ICC proceedings will directly impact ComEd's ability to secure cost-effective power and, consequently, the rates charged to Illinois customers, as ComEd intends to pass these costs through without markup.

Key Highlights

1ComEd and Exelon Generation filed an application with FERC seeking approval for a competitive auction process to procure wholesale electric power.
2The auction process is intended to secure power supply for ComEd's Illinois customers beyond December 31, 2006, to meet its Provider of Last Resort (POLR) obligations.
3ComEd aims to acquire power at the lowest possible cost through this competitive auction, with no markup to customers.
4The application requests FERC to confirm the auction process aligns with FERC's principles for competitive wholesale power procurement, citing relevant prior decisions.
5FERC approval is sought to ensure that agreements with winning bidders, potentially including Exelon Generation, are acceptable as just and reasonable under the Federal Power Act.
6An expedited FERC order by December 15, 2005, was requested to align with the ICC's decision timeline for the Procurement Rider Case.
7The outcome of these regulatory filings is critical for ComEd's ability to meet its service obligations and manage costs for Illinois customers.

EXELON CORP 8-K Report, Corporate Update (Oct 18, 2005)

Summary

Key Highlights

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