8-KOther Events

EXELON CORP 8-K Report, Corporate Update (Mar 2, 2007)

Filed March 2, 2007For Securities:EXC

Summary

Exelon Corporation's subsidiary, Commonwealth Edison Company (ComEd), has filed a request with the Federal Energy Regulatory Commission (FERC) to increase its transmission services rate, effective potentially in May 2007. This proposed increase is expected to raise the average residential customer's bill by approximately 1.5%. The filing also includes a request for FERC approval of an annual formula to adjust future transmission charges, aiming to align rates with the actual costs of providing transmission services and ensuring customers pay for actual expenses. This rate adjustment follows significant investment by ComEd, with over $800 million allocated to transmission-related plant between 2003 and the end of 2007, driven by increasing demand and the need to enhance reliability. While ComEd is proposing the increase, the exact amount of the approved rate hike and its effective date remain uncertain as they are subject to FERC's decision. Investors should monitor this filing as it could impact ComEd's revenue and customer costs.

Key Highlights

  • 1ComEd filed a request with FERC on March 1, 2007, to increase its transmission services rate.
  • 2The proposed rate increase is estimated to impact the average residential customer's bill by approximately 1.5%.
  • 3ComEd is seeking an effective date for the new transmission rate in May 2007.
  • 4A key component of the request is the approval of a formula to annually adjust future transmission charges based on actual costs.
  • 5The last update to ComEd's transmission rate was in 2003.
  • 6ComEd has invested over $800 million in transmission-related infrastructure between 2003 and the end of 2007 to meet demand and improve reliability.
  • 7The final approved rate increase and its effective date are subject to FERC's decision.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce that Exelon Corporation's subsidiary, Commonwealth Edison Company (ComEd), has formally requested approval from the Federal Energy Regulatory Commission (FERC) to increase its transmission services rate. This filing informs investors about potential changes to customer billing and ComEd's operational costs.

The proposed transmission rate increase by ComEd is estimated to result in an average increase of about 1.5% on residential customer bills. This change is intended to cover the costs associated with maintaining and upgrading the transmission infrastructure.

ComEd is seeking a rate increase because its transmission rate was last updated in 2003. Between 2003 and the end of 2007, the company has invested over $800 million in transmission-related plant to address increasing demand and improve the reliability of its services. The proposed increase aims to reflect these investments and ongoing costs.

No, the proposed rate increase is not guaranteed. ComEd has filed a request with FERC, and the commission will review it. The final approved rate increase, its amount, and its effective date are all subject to FERC's decision. ComEd cannot predict the outcome of this regulatory process.