Summary
This 8-K filing reports that on July 2, 2014, Exelon Corporation's subsidiary, Baltimore Gas and Electric Company (BGE), filed an application with the Maryland Public Service Commission (MDPSC) to increase its electric and gas distribution base rates. BGE is seeking an aggregate increase of approximately $185.3 million ($117.6 million for electric and $67.6 million for gas). The filing also includes requested rates of return on equity for both electric and gas distribution, which are expected to take effect in January 2015, pending regulatory approval. Investors should note that the ultimate approval of these rate increases by the MDPSC is uncertain. The company cannot predict the extent to which its requested amounts will be granted. This filing primarily serves to inform stakeholders of the regulatory action initiated by BGE and its potential impact on future revenue. Further details are available in BGE's press release, attached as Exhibit 99.1.
Key Highlights
- 1Baltimore Gas and Electric Company (BGE) filed an application for rate increases with the Maryland Public Service Commission (MDPSC) on July 2, 2014.
- 2BGE is requesting an increase of $117.6 million in electric distribution base rates.
- 3BGE is also requesting an increase of $67.6 million in gas distribution base rates.
- 4The total requested increase for electric and gas distribution base rates amounts to $185.3 million.
- 5The requested rates of return on equity are 10.65% for electric distribution and 10.55% for gas distribution.
- 6The new base rates are anticipated to become effective in January 2015, subject to MDPSC approval.
- 7The outcome of the MDPSC's decision on the requested rate increases is uncertain.