8-KOther Events

EXELON CORP 8-K Report, Corporate Update (Dec 18, 2013)

Filed December 18, 2013For Securities:EXC

Summary

This 8-K filing from Exelon Corporation (EXC) on December 18, 2013, primarily concerns an order from the Maryland Public Service Commission (MDPSC) regarding rate increases for its subsidiary, Baltimore Gas and Electric Company (BGE). The MDPSC authorized BGE to increase annual electric base rates by approximately $33.6 million and annual gas base rates by approximately $12.5 million. These amounts represent a fraction of the $82.6 million electric and $24.4 million gas rate increases BGE had requested. While the authorized rate increases are significantly lower than requested, they are effective for service rendered on or after December 13, 2013. The decision sets allowed returns on equity at 9.75% for electric distribution and 9.60% for gas distribution. Investors should note that these figures are subject to the risks and uncertainties outlined in Exelon's and BGE's SEC filings, and the company has no obligation to update forward-looking statements.

Key Highlights

  • 1Baltimore Gas and Electric Company (BGE), a subsidiary of Exelon, received approval for base rate increases from the Maryland Public Service Commission (MDPSC).
  • 2The MDPSC authorized an annual increase in electric base rates of approximately $33.6 million.
  • 3The MDPSC authorized an annual increase in gas base rates of approximately $12.5 million.
  • 4These authorized increases are substantially less than BGE's original requests of $82.6 million for electric and $24.4 million for gas.
  • 5The approved rate increases are effective for service rendered on or after December 13, 2013.
  • 6The MDPSC set allowed returns on equity at 9.75% for electric distribution and 9.60% for gas distribution.

Frequently Asked Questions

The main event is the Maryland Public Service Commission's (MDPSC) decision on December 13, 2013, regarding the base rate increase application filed by Exelon's subsidiary, Baltimore Gas and Electric Company (BGE). The MDPSC authorized partial increases to BGE's electric and gas base rates.

BGE was authorized to increase its annual electric base rates by approximately $33.6 million and its annual gas base rates by approximately $12.5 million. These amounts are significantly less than the company's initial requests.

The new electric and natural gas distribution rates authorized by the MDPSC are effective for service rendered on or after December 13, 2013.

The lower-than-requested rate increases may impact BGE's revenue and profitability expectations, potentially affecting Exelon's consolidated financial results. Investors should monitor future filings for any adjustments to financial guidance or commentary on operational impacts.