Summary
This Form 8-K filing reports that Exelon Corporation's subsidiary, Baltimore Gas and Electric Company (BGE), has applied to the Maryland Public Service Commission (MDPSC) for an increase in its electric and gas distribution base rates. The requested increase amounts to $101.5 million for electric and $29.7 million for gas, with BGE seeking specific rates of return on equity for each. These new rates are anticipated to be effective in December 2013, pending regulatory approval. Investors should note that the outcome of this rate case is uncertain, as BGE cannot predict the extent to which the MDPSC will approve the requested increases.
Key Highlights
- 1Baltimore Gas and Electric Company (BGE) filed an application with the Maryland Public Service Commission (MDPSC) on May 17, 2013.
- 2BGE is seeking an increase of $101.5 million in its electric distribution base rates.
- 3BGE is also seeking an increase of $29.7 million in its gas distribution base rates.
- 4The company is requesting rates of return on equity of 10.50% for electric and 10.35% for gas distribution.
- 5The proposed new rates are expected to become effective in December 2013, subject to MDPSC approval.
- 6BGE acknowledges that the final approved rate increases may differ from the amounts requested.
Frequently Asked Questions
The primary purpose of this filing is to inform investors that BGE, a subsidiary of Exelon, has formally applied to the Maryland Public Service Commission to increase its electric and gas distribution base rates.
BGE is requesting an increase of $101.5 million for its electric distribution base rates and $29.7 million for its gas distribution base rates.
The new electric and gas distribution base rates are expected to take effect in December 2013, provided they are approved by the Maryland Public Service Commission.
No, the requested rate increase is not guaranteed. BGE has stated that it cannot predict how much of the requested increases the Maryland Public Service Commission will ultimately approve.