Summary
This Form 8-K filing from Exelon Corporation (EXC) on June 8, 2007, details a significant development regarding its subsidiary Commonwealth Edison Company's (ComEd) transmission rate increase request. The Federal Energy Regulatory Commission (FERC) has conditionally approved ComEd's request for a formula-based transmission rate, effective retroactively from May 1, 2007. However, this approval is subject to further hearing and settlement procedures to determine the reasonableness of specific elements, including ComEd's proposed 11.70% base return on equity and rate base components.
Key Highlights
- 1FERC conditionally approved ComEd's formula-based transmission rate increase, effective May 1, 2007.
- 2The approved rate increase is subject to refund pending further hearings and settlement procedures.
- 3Key issues for further determination include ComEd's proposed 11.70% base return on equity and elements of the rate base.
- 4FERC denied ComEd's requests for incentive rate treatment on two transmission projects and inclusion of Construction Work in Progress (CWIP) in rate base.
- 5ComEd must file a revised formula reflecting the FERC's findings within 30 days.
- 6The initial approved rate would increase an average residential customer bill by approximately 1%, but the final impact is uncertain pending resolution of further proceedings.
- 7ComEd has invested over $800 million in transmission-related plant between 2003 and the end of 2007 to enhance demand and reliability.