8-KOther EventsExhibits & Filings

EXELON CORP 8-K Report, Corporate Update (Nov 6, 2015)

Filed November 6, 2015For Securities:EXC

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.

Frequently Asked Questions

The main purpose of this filing is to inform investors that Baltimore Gas and Electric Company (BGE), a subsidiary of Exelon Corporation, has applied to the Maryland Public Service Commission (MDPSC) to increase its electric and gas distribution rates and to recover conduit fees.

BGE is requesting increases of approximately $135.2 million to its electric distribution base rates and $77.8 million to its gas distribution base rates.

The new electric and gas distribution base rates are expected to take effect in June 2016, subject to approval by the MDPSC.

BGE is proposing to recover an annual increase of $30 million for Baltimore City conduit fees through a tracker mechanism. This means that costs associated with these fees could be automatically passed on to customers, subject to regulatory approval.

No, there is no guarantee. BGE states in the filing that it cannot predict how much of the requested increases the MDPSC will approve or if it will approve the conduit fee tracker mechanism. The final approved rates could be lower than requested, or the tracker may not be approved.