ComEd 2013 Annual Report Download - page 24

EIMA providesfor additional energy efficiency inIllinois. StartingintheJune 2013—May2014periodandoccurringannually
thereafter,aspart oftheIPA procurement plan,ComEd is to includecost-effectiveexpansion ofcurrent energy efficiency programs,
anyadditional newcost-effective programand/or third-partyenergy efficiency programs that are identifiedthrough arequestfor
proposal (“RFP”) process. All cost-effective energy efficiency programs are includedintheIPA procurement plan for consideration of
implementation. While these programs are monitoredseparatelyfromtheEnergy Efficiency PortfolioStandard (EEPS), funds for
boththeEEPS portfolioandIPA energy efficiency programs are collectedunder thesamerider.
Construction Budget
ComEd’s business is capital intensiveandrequires significant investmentsprimarilyin energy transmission and distribution facilities,
to ensure theadequate capacity, reliabilityandefficiency ofits system. Basedon PJM’s RTEP, ComEd hasvariousconstruction
commitments, as discussedinNote 3 oftheCombinedNotesto ConsolidatedFinancial Statements. ComEd’s mostrecent estimate
ofcapital expendituresfor electric plant additionsandimprovementsfor 2014is$1,775 million, which includesRTEP projectsand
infrastructure modernization resultingfrom EIMA.See Management’s Discussion andAnalysis ofFinancial Condition andResultsof
Operations, LiquidityandCapital Resourcesfor further information.
PECO
PECO is engagedprincipallyinthe purchaseandregulatedretailsale ofelectricityandthe provision oftransmission and distribution
servicesto retailcustomersinsoutheastern Pennsylvania,includingtheCityof Philadelphia,aswell asthe purchaseandregulated
retailsale ofnatural gasandthe provision ofgas distribution servicesto retailcustomersinthePennsylvaniacountiessurrounding
theCityof Philadelphia. PECO is apublic utilityunder thePennsylvaniaPublic UtilityCodesubjecttoregulation by thePAPUC asto
electric andgas distribution ratesandservice,theissuancesofcertainsecuritiesandcertainother aspectsof PECO’s operations.
PECO is apublic utilityunder theFederal Power Actsubjecttoregulation by FERCasto transmission ratesandcertainother
aspectsof PECO’s business andbytheU.S. Department ofTransportation asto pipeline safetyandother areasofgasoperations.
Specific operationsof PECO are subjecttothejurisdiction ofvariousother Federal,state,regional andlocal agencies. Additionally,
PECO is alsosubjecttoNERCmandatoryreliabilitystandards.
PECO’s combinedelectric andnatural gasretailservice territoryhasan area ofapproximately2,100 square milesandan estimated
population of4.0million. PECO provideselectric distribution servicein an area ofapproximately1,900 square miles, witha
population ofapproximately3.9 million,includingapproximately1.5 million intheCityof Philadelphia. PECO providesnatural gas
distribution servicein an area ofapproximately1,900 square milesinsoutheastern Pennsylvaniaadjacent to theCityof Philadelphia,
witha population ofapproximately2.4 million. PECO deliverselectricityto approximately1.6 million customersandnatural gasto
approximately501,000 customers.
PECO hasthenecessaryauthorizationsto provideregulatedelectric andnatural gas distribution serviceinthevariousmunicipalities
or territoriesinwhich itnowsuppliessuch services. PECO’s authorizationsconsistofcharter rightsandcertificatesofpublic
convenienceissuedbythePAPUC and/or “grandfatheredrights,” which are rightsgenerallyunlimitedasto timeandgenerally
exclusivefromcompetition fromother electric andnatural gasutilities. Inafewdefinedmunicipalities, PECO’s natural gasservice
territoryauthorizationsoverlap withthat ofanother natural gasutility; however, PECO doesnot consider thosesituationsasposinga
material competitiveorfinancial threat.
PECO’s kWh salesandpeakelectricityloadare generally higher duringthesummer andwinter months, when temperature extremes
create demandfor either summer coolingor winter heating. PECO’s highest peakloadoccurredon July22,2011 andwas 8,983
MW; its highest peakloadduringwinter months occurredon January7,2014andwas7,148 MW.
PECO’s natural gassalesare generally higher duringthewinter months when coldtemperaturescreate demandfor winter heating.
PECO’s highestdailynatural gassendout occurredon January7,2014andwas760mmcf.
Retail Electric Services
PECO’s retail electric salesand distribution servicerevenuesare derivedpursuant to ratesregulatedbythePAPUC. Pennsylvania
permitscompetition by competitive electric generation suppliersfor thesupplyofretail electricity while retail transmission and
distribution serviceremainsregulatedunder theCompetition Act.At December 31,2013,there were 87 competitive electric
generation suppliersserving PECO customers. At December 31,2013,thenumber ofretailcustomerspurchasingenergy froma
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