8-KRegulation FDExhibits & Filings

EXELON CORP 8-K Report, Regulation FD Disclosure (Jan 17, 2023)

Filed January 17, 2023For Securities:EXC

Summary

Commonwealth Edison Company (ComEd), a subsidiary of Exelon Corporation, has filed a petition with the Illinois Commerce Commission (ICC) to implement a Multi-Year Rate Plan for 2024-2027. This plan is designed to support significant planned investments in ComEd's electric distribution system through a Multi-Year Grid Plan, also filed on January 17, 2023. The proposed rate increases are structured to escalate annually, beginning with $3.76 billion in 2024 and reaching $4.35 billion by 2027, reflecting requested returns on common equity ranging from 10.50% to 10.65%. Investors should note that the ICC will conduct a review of these plans, with a decision expected by mid-December 2023. The filing also includes a request for a phased-in recovery of the 2024 rate increase, with 35% deferred for recovery in 2026. While the proposed plans outline significant capital investment, the ultimate outcome is subject to regulatory approval and potential intervention from other parties, introducing an element of uncertainty for future revenue streams.

Key Highlights

  • 1ComEd filed a Multi-Year Rate Plan (2024-2027) with the Illinois Commerce Commission (ICC) seeking increased revenue requirements.
  • 2The Rate Plan supports a Multi-Year Grid Plan focused on electric distribution system investments.
  • 3Requested annual base rate revenue requirements range from $3.76 billion in 2024 to $4.35 billion in 2027.
  • 4ComEd is requesting returns on common equity between 10.50% and 10.65% over the plan period.
  • 5A phased-in recovery is requested for the 2024 rate increase, deferring 35% to 2026.
  • 6The ICC will review the plans, with a decision anticipated by mid-December 2023.
  • 7The final outcome is uncertain due to regulatory review and potential third-party interventions.

Frequently Asked Questions

The primary purpose of the Multi-Year Rate Plan is to secure approval for increased revenue requirements to fund significant planned investments in ComEd's electric distribution system over the period 2024-2027, as outlined in its accompanying Multi-Year Grid Plan.

The Rate Plan proposes an increase in annual base rate revenue requirements, starting at approximately $3.76 billion in 2024 and growing to approximately $4.35 billion in 2027. This suggests a material increase in revenue for ComEd if the ICC approves the requested amounts.

The Illinois Commerce Commission (ICC) is expected to review the Rate and Grid Plans and issue a decision by mid-December 2023.

No, the proposed revenue requirements are requests. The ICC must review the plans, and other parties may intervene. The ultimate outcome is subject to regulatory approval and cannot be determined at this time, meaning the final approved rates could differ from what ComEd is requesting.