Summary
This 8-K filing by Exelon Corporation (EXC), specifically through its subsidiary Baltimore Gas and Electric Company (BGE), reports a significant event on July 27, 2012. BGE has filed an application with the Maryland Public Service Commission (MDPSC) requesting substantial increases to its electric and gas base rates. The proposed increase amounts to $150.8 million for electric distribution rates and $53.4 million for gas distribution rates. Investors should note that BGE is seeking a 10.5% rate of return on equity in this application. The anticipated effective date for these new rates is late February 2013. However, the filing explicitly states that BGE cannot predict the extent to which the MDPSC will approve these requested increases. This event represents a key driver for potential future revenue and earnings for BGE, a regulated utility subsidiary of Exelon.
Key Highlights
- 1Baltimore Gas and Electric Company (BGE) filed for electric and gas base rate increases with the Maryland Public Service Commission (MDPSC).
- 2Requested increase for electric base rates is $150.8 million.
- 3Requested increase for gas base rates is $53.4 million.
- 4BGE is seeking a 10.5% rate of return on equity.
- 5New rates are expected to take effect in late February 2013, subject to MDPSC approval.
- 6The outcome of the rate increase request is uncertain, as BGE cannot predict the approved amount.
- 7This filing is a combined report from Exelon Corporation and BGE.