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.