Summary
This 8-K filing from Exelon Corporation and its subsidiaries, Commonwealth Edison Company (ComEd) and Exelon Generation Company, LLC, reports on significant legislative developments in Illinois. A key event is the introduction of Floor Amendment No. 3 to Senate Bill 1592, the "Electricity Rate Relief Act of 2007." If enacted, this bill would roll back electricity rates to 2006 levels for most generation, while allowing for approved delivery rate increases. It also mandates refunds to customers for overpayments in 2007, plus interest. Of major concern to Exelon is the proposed annual "generation tax" of $70,000 per megawatt of nameplate capacity on most Illinois generation facilities. This tax is estimated to cost Exelon Generation approximately $775 million annually, with the collected funds earmarked for customer refunds and rate reductions. Exelon explicitly states that the company, along with ComEd and other utilities, believes this legislation would have detrimental effects on Illinois, its utilities, and consumers. They intend to pursue all available legal remedies if the bill becomes law, deeming it unconstitutional.
Key Highlights
- 1Introduction of "Electricity Rate Relief Act of 2007" (Senate Bill 1592, Floor Amendment No. 3) in Illinois.
- 2Bill proposes rolling back electricity generation rates to 2006 levels.
- 3Mandatory refunds to customers for amounts paid in excess of rolled-back rates in 2007, plus interest.
- 4Imposition of an estimated $775 million annual 'generation tax' on Exelon Generation's capacity.
- 5The generation tax revenue would fund customer refunds and rate reductions.
- 6Exelon and ComEd believe the proposed legislation is unconstitutional and would harm Illinois, utilities, and consumers.
- 7Exelon plans to pursue all available legal remedies if the bill is enacted.