Summary
This 8-K filing from Exelon Corporation (EXC) announces a press release from its subsidiary, PECO Energy Company (PECO), detailing PECO's preparedness to implement programs addressing critical energy policy. These initiatives focus on energy efficiency, demand-side management, smart-meter technology, and time-of-use rates. This proactive stance aims to modernize energy delivery and potentially mitigate future cost pressures for consumers. Of particular note for investors is PECO's projection of a 15% to 20% increase in average electric rates by 2011. This forecast is based on several key assumptions, including the elimination of the competitive transition charge, the continuation of current transmission and distribution rates, and market price projections for energy. While this projection offers transparency into potential future cost structures, it's important for investors to understand that actual rates may vary based on a multitude of factors, including legislative outcomes and changes in procurement models.
Key Highlights
- 1PECO Energy Company (PECO), a subsidiary of Exelon, is preparing to implement programs focused on energy efficiency and demand-side management.
- 2The initiatives include the adoption of smart-meter technology and time-of-use rates.
- 3PECO projects an increase of 15% to 20% in its average electric rates by 2011.
- 4This rate increase projection is based on the elimination of the competitive transition charge and continuation of current T&D rates.
- 5Market price projections for 2011 are a key factor in the rate increase forecast.
- 6The filing mentions potential influences of future procurement legislation and carbon legislation on individual customer rates.