Summary
This 8-K filing by Exelon Corporation (EXC) on November 6, 2015, reports that its subsidiary, Baltimore Gas and Electric Company (BGE), has filed an application with the Maryland Public Service Commission (MDPSC) to increase its electric and gas distribution base rates. The requested increases total approximately $135.2 million for electric and $77.8 million for gas, with new rates expected to be effective in June 2016, pending regulatory approval. BGE is also seeking to recover an annual increase of $30 million for Baltimore City conduit fees through a tracker mechanism. Investors should note that the MDPSC's approval of these requested increases and the conduit fee tracker is not guaranteed, and the final outcome could differ from BGE's proposals. This filing is significant as it directly impacts BGE's future revenue and profitability.
Key Highlights
- 1BGE filed an application with the Maryland Public Service Commission (MDPSC) for rate increases.
- 2The requested increase for electric distribution base rates is $135.2 million.
- 3The requested increase for gas distribution base rates is $77.8 million.
- 4BGE is seeking to recover $30 million annually for Baltimore City conduit fees via a tracker mechanism.
- 5The new electric and gas distribution base rates are proposed to take effect in June 2016.
- 6Regulatory approval from the MDPSC is required for the rate increases and the conduit fee tracker.
- 7The filing indicates that BGE cannot predict the extent of the MDPSC's approval.