Summary
This 8-K filing by Exelon Corporation, specifically reporting on its subsidiary PECO Energy Company, announces a significant regulatory development. On December 16, 2010, the Pennsylvania Public Utility Commission (PAPUC) approved settlements for PECO's proposed increases in electric and natural gas distribution rates. This approval marks the culmination of rate case proceedings and will impact PECO's future revenue. For investors, the key takeaway is the partial approval of PECO's requested rate increases. The PAPUC authorized an additional $225 million in annual electric distribution revenue, which is 71% of the $316 million PECO sought. Similarly, $20 million in annual natural gas distribution revenue was approved, representing 46% of the $44 million requested. These new rates are scheduled to take effect on January 1, 2011, providing clarity on PECO's near-term revenue outlook.
Key Highlights
- 1PECO Energy Company (PECO), a subsidiary of Exelon Corporation, received approval from the Pennsylvania Public Utility Commission (PAPUC) for its electric and natural gas distribution rate settlements.
- 2The PAPUC approved an additional $225 million in annual electric distribution revenue for PECO.
- 3This represents approximately 71% of PECO's original request of $316 million for electric distribution rate increases.
- 4The PAPUC also approved an additional $20 million in annual natural gas distribution revenue for PECO.
- 5This constitutes approximately 46% of PECO's original request of $44 million for natural gas distribution rate increases.
- 6The new electric and natural gas distribution rates are set to become effective on January 1, 2011.
- 7The filing includes a press release from PECO as an exhibit detailing the PAPUC approval.