8-KOther EventsExhibits & Filings

EXELON CORP 8-K Report, Corporate Update (Oct 3, 2006)

Filed October 3, 2006For Securities:EXC

Summary

This Form 8-K filing from Exelon Corporation (EXC) on October 3, 2006, primarily concerns developments in Illinois regarding electricity rates for Commonwealth Edison Company (ComEd) customers. The Illinois Commerce Commission (ICC) had approved the results of an auction for fixed-price electricity, leading to new rates effective January 2, 2007. These new rates represent the first general increase since 1995, following previous rate reductions. The filing also highlights a political development where the Speaker of the Illinois House of Representatives requested a special legislative session to consider a bill that would extend the current electric rate freeze until 2010. The Governor of Illinois indicated his willingness to work towards passing such legislation, signaling potential uncertainty regarding the approved rate changes.

Key Highlights

  • 1Illinois Commerce Commission (ICC) approved results of an electric power auction for ComEd customers.
  • 2New electricity rates will take effect on January 2, 2007, marking the first general rate increase since 1995.
  • 3Previous ComEd rates had seen significant reductions for residential customers in 1998 and 2001.
  • 4Speaker of the Illinois House requested a special legislative session to consider extending the current electric rate freeze until 2010.
  • 5Illinois Governor expressed intent to work with legislative leaders to pass rate freeze extension legislation.
  • 6A statement from ComEd's Chairman and CEO regarding the special session call is attached as an exhibit.

Frequently Asked Questions

The main event is the regulatory and political developments in Illinois concerning electricity rates for Commonwealth Edison Company (ComEd) customers. The Illinois Commerce Commission (ICC) approved new rates set by an auction, which are set to take effect in January 2007. Concurrently, there's political activity to potentially extend the current rate freeze.

The new electricity rates approved by the ICC will apply to electricity usage beginning on January 2, 2007.

These new rates represent the first general rate increase for ComEd customers since 1995, following a period of rate reductions in 1998 and 2001.

There is a possibility of uncertainty. The Speaker of the Illinois House requested a special legislative session to consider extending the existing rate freeze until 2010, and the Governor has indicated a willingness to work towards passing such legislation. This could potentially impact or delay the implementation of the newly approved rates.