What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to announce that PECO Energy Company, a subsidiary of Exelon, has filed a joint petition for settlement regarding its default service procurement plan in Pennsylvania. This settlement outlines a revised program for how PECO will procure energy for its customers starting in 2011.

How will PECO procure default service under the new plan?

Under the revised plan, PECO will divide customers into four classes and procure default service through a combination of competitively procured contracts with varying terms (1-year, 2-year, or hourly spot market pricing) and, for the residential class, PECO's direct management of a portion of the load through PJM market participation. The specific mix of procurement methods differs by customer class.

Are there any provisions for low-income customers or customer assistance in this settlement?

Yes, the settlement includes a material expansion of PECO's Customer Assistance Program (CAP) and other low-income assistance initiatives. This includes adopting a new six-tier CAP rate design, increasing discount levels, implementing a usage tracking system for CAP customers, and expanding spending under the Low-Income Usage Reduction Program (LIURP).

What is the role of NERA Economic Consulting in this settlement?

NERA Economic Consulting, Inc. (NERA) has been appointed as an independent monitor to oversee PECO's procurements under the Revised DSP Program, ensuring compliance and transparency.

EXC 8-K SEC Disclosure — Mar 10, 2009

Summary

This 8-K filing from Exelon Corporation (EXC) on March 10, 2009, primarily concerns its subsidiary, PECO Energy Company (PECO), and a significant joint petition for settlement filed with a Pennsylvania Public Utilities Commission Administrative Law Judge. The settlement relates to PECO's default service procurement plan for customers in 2011 and beyond. The agreement, reached with a broad coalition of stakeholders including consumer advocates and various user groups, aims to establish a revised default service provider program (Revised DSP Program) with a term of twenty-nine months, commencing January 1, 2011, and concluding May 31, 2013. The Revised DSP Program introduces a structured approach to default service procurement, dividing customers into four classes: Residential, Small Commercial, Medium Commercial, and Large Commercial and Industrial. For each class, the plan outlines specific percentages of load to be served through competitively procured contracts of varying terms (one, two, or hourly spot market pricing). Notably, the Residential class will have 75% of its load served via competitive contracts, with the remaining 25% (the "PECO Share") being managed by PECO through forward energy purchases and PJM market participation. This comprehensive settlement addresses not only energy procurement but also customer assistance programs and measures to promote retail competition.

Key Highlights

1PECO Energy Company (a subsidiary of Exelon) filed a joint petition for settlement on its default service procurement plan with the Pennsylvania Public Utilities Commission.
2The settlement covers a Revised Default Service Provider Program (Revised DSP Program) intended for service from January 1, 2011, to May 31, 2013 (29 months).
3Customers will be divided into four classes: Residential, Small Commercial, Medium Commercial, and Large Commercial and Industrial, with distinct procurement strategies for each.
4A significant portion of residential load (75%) will be served through competitively procured contracts, with the remaining 25% managed by PECO via PJM market participation.
5The settlement includes provisions for customer assistance programs, specifically an expansion of the Customer Assistance Program (CAP) and increased spending on the Low-Income Usage Reduction Program (LIURP).
6Measures to promote retail competition are outlined, including updating customer information databases, developing customer education materials, and appointing a retail choice ombudsman.
7Independent oversight will be provided by NERA Economic Consulting, Inc., as an independent monitor of PECO's procurements.

EXELON CORP 8-K Report, Corporate Update (Mar 10, 2009)

Summary

Key Highlights

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