Summary
This 8-K filing from Exelon Corporation (EXC) on November 22, 2017, primarily reports on a negative development regarding regulatory matters for its subsidiary, Baltimore Gas and Electric Company (BGE). The Federal Energy Regulatory Commission (FERC) issued an order on November 16, 2017, rejecting BGE's proposal to recover certain transmission-related income tax regulatory assets through its transmission formula rate. These assets amounted to $42 million as of September 30, 2017. BGE is currently evaluating its response to this FERC order.
Key Highlights
- 1FERC rejected BGE's proposal to recover $42 million in transmission-related income tax regulatory assets through its transmission formula rate.
- 2BGE is assessing its next steps in response to the FERC's order.
- 3Other Exelon subsidiaries (ComEd, PHI, Pepco, DPL, ACE) also have similar transmission-related income tax regulatory assets pending FERC approval.
- 4These other subsidiaries have not yet filed with FERC for recovery of their respective assets.
- 5PECO Energy Company's regulatory assets are not affected by this specific FERC order as they are not subject to the same recovery formula.
- 6A potential impairment charge to after-tax earnings could be up to approximately $115 million for Exelon and its subsidiaries if these regulatory assets are deemed unrecoverable.
- 7The filing includes standard forward-looking statements and risk disclaimers related to potential future outcomes.