8-KMaterial AgreementsExhibits & Filings

EXELON CORP 8-K Report, Material Agreement (Sep 10, 2015)

Filed September 10, 2015For Securities:EXC

Summary

On September 10, 2015, Exelon Corporation's subsidiary, PECO Energy Company (PECO), along with various interested parties, filed a petition for a joint settlement with the Pennsylvania Public Utility Commission (PAPUC) regarding its electric distribution rate case. This filing follows PECO's initial rate case submission on March 27, 2015. The proposed settlement requests an approximate $127 million increase in annual revenue, which represents a significant reduction from the initially requested $190 million, or about 67% of the original amount. This settlement has the backing of a broad coalition of stakeholders, including consumer advocates, industrial users, and environmental groups, as well as indications of non-opposition from the U.S. General Services Administration and a customer intervenor. The settlement is contingent on approval from the PAPUC, and if approved, the new rates are slated to take effect on January 1, 2016.

Key Highlights

  • 1PECO Energy Company filed a joint settlement petition with the Pennsylvania Public Utility Commission (PAPUC) for its electric distribution rate case on September 10, 2015.
  • 2The settlement requests an approximate $127 million increase in annual electric distribution revenues.
  • 3This proposed revenue increase is approximately 67% of the $190 million initially requested by PECO.
  • 4The settlement agreement includes a broad range of stakeholders, such as consumer advocates, industrial users, and environmental organizations.
  • 5The settlement is subject to approval by the PAPUC.
  • 6If approved, the new electricity distribution rates are expected to become effective on January 1, 2016.

Frequently Asked Questions

This Form 8-K filing announces that PECO Energy Company, a subsidiary of Exelon Corporation, has entered into a joint settlement agreement with various parties regarding its electric distribution rate case before the Pennsylvania Public Utility Commission (PAPUC).

The joint settlement proposes an approximate $127 million increase in PECO's annual electric distribution revenues. This is considerably less than the $190 million that PECO had originally requested.

The settlement involves PECO and a wide array of intervenors, including consumer advocates (Bureau of Investigation & Enforcement, Office of Consumer Advocate, etc.), industrial users (Philadelphia Area Industrial Energy Users Group), and environmental groups (Clean Air Council, Natural Resources Defense Council, etc.). The broad support or non-opposition from these diverse groups suggests a potentially smoother path to PAPUC approval, which is positive for regulatory certainty and future revenue streams.

If the Pennsylvania Public Utility Commission (PAPUC) approves the settlement, the new electric distribution rates are expected to become effective on January 1, 2016.