Summary
Exelon Corporation, through its subsidiaries Exelon Generation Company, LLC and Commonwealth Edison Company (ComEd), filed a Form 8-K on August 3, 2007, to disclose an update on a financial swap contract. This contract, previously agreed upon as part of a settlement to address concerns over rising electricity prices in Illinois, is intended to provide price stability for residential and small business customers. The contract's effectiveness is contingent on the enactment of Senate Bill 1592 into law by the Governor of Illinois. The filing indicates that the Illinois legislature has passed the bill, but it awaits the Governor's signature. The Governor has a 60-day review period, which is expected to conclude near the end of September 2007. A crucial deadline is September 5, 2007; if the bill is not enacted by this date, neither Exelon Generation nor ComEd will have further obligations under the current contract. However, both parties may explore alternatives, such as extending the deadline, adjusting pricing, or entering into a new financial swap agreement.
Key Highlights
- 1Exelon Generation and ComEd have a financial swap contract designed to stabilize electricity prices for residential and small business customers in Illinois.
- 2The contract is part of a settlement to address concerns about high electric bills in Illinois.
- 3The contract's effectiveness is dependent on the enactment of Senate Bill 1592 into law by the Governor of Illinois.
- 4The Illinois legislature has passed Senate Bill 1592, but it requires the Governor's signature.
- 5The Governor has a 60-day period to review the legislation, expected to expire in late September 2007.
- 6If the legislation is not enacted by September 5, 2007, the current contract becomes void.
- 7Exelon and ComEd may consider extending the deadline, adjusting pricing, or entering into a new contract if the September 5th deadline is missed.