ComEd 2013 Annual Report Download - page 26

Energy Efficiency Programs. PECO’s PAPUC-approvedPhaseI EE&C plan hadafour-year termthat began on June 1,2009and
concludedon May31,2013.ThePhaseIPlan setsforthhow PECO wouldmeet therequiredreduction targetsestablishedbyAct
129’s EE&C provisions, which includeda3%reduction in electric consumption inPECO’s service territoryanda4.5% reduction in
PECO’s annual systempeakdemandinthe 100 hoursof highestdemandbyMay31,2013.The peakdemandperiodendedon
September 30,2012 and PECO communicateditscompliancewiththereduction targetsin a preliminaryreport withthePAPUC on
March 1,2013.Thefinal compliance report wasfiledwiththePAPUC on November 15, 2013.
ThePAPUC issueditsPhaseII EE&C implementation order on August2,2012,that providesenergy consumption reduction
requirementsfor thesecondphaseofAct129’s EE&C programs, which went into effectonJune 1,2013.ThePAPUC deferreda
decision on peakdemandreduction requirementsuntil late 2013.OnFebruary28, 2013,thePAPUC approved PECO’s three-year
EE&C PhaseII plan that wasfiledwiththePAPUC on November 1,2012,andsetsforthhow PECO will reduce electric consumption
by at least1,125,852MWh initsservice territoryfor the periodJune 1,2013 through May31,2016.
See Note 3 oftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information.
Natural Gas
PECO’s natural gassalesand distribution servicerevenuesare derivedthrough natural gasdeliveriesat ratesregulatedbythe
PAPUC. PECO’s purchasednatural gascost rates, which represent a significant portion oftotal rates, are subjecttoquarterly
adjustmentsdesignedto recover or refundthedifferencebetween theactual costofpurchasednatural gasandtheamount included
in rateswithout markup through thePGC.
PECO’s natural gascustomershavetherighttochoosetheir natural gassuppliersor to purchasetheirgassupplyfrom PECO at
cost.At December 31,2013,thenumber ofretailcustomerspurchasingnatural gasfromacompetitive natural gassupplier was
66,400,representingapproximately13%oftotal retailcustomers. Retaildeliveriespurchasedfromcompetitive natural gassuppliers
representedapproximately19% of PECO’s mmcf salesfor theyear endedDecember 31,2013. PECO provides distribution,billing,
metering, installation,maintenanceandemergency responseservicesat regulatedratesto all itscustomersinitsservice territory.
Procurement Proceedings. PECO’s natural gassupplyispurchasedfromanumber ofsuppliersprimarilyunder long-termfirm
transportation contractsfor terms ofup to three yearsinaccordancewithitsannual PAPUC PGC settlement. PECO’s aggregate
annual firmsupplyunder thesefirmtransportation contractsis34million dekatherms. Peaknatural gasisprovided by PECO’s
liquefiednatural gas (LNG) facilityandpropane-air plant. PECO alsohasunder contract21million dekatherms ofunderground
storagethrough serviceagreements. Natural gasfromundergroundstorage representsapproximately30%of PECO’s 2013-2014
heatingseason plannedsupplies.
See Note 3 oftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information.
Construction Budget
PECO’s business is capital intensiveandrequires significant investmentsprimarilyin electric transmission andelectric andnatural
gas distribution facilitiesto ensure theadequate capacity, reliabilityandefficiency ofits system. PECO, asa transmission facilities
owner,hasvariousconstruction commitmentsunder PJM’s RTEP as discussedinNote 3 oftheCombinedNotesto Consolidated
Financial Statements. PECO’s mostrecent estimate ofcapital expendituresfor plant additionsandimprovementsfor 2014is$625
million, which includesRTEP projectsandcapital expendituresrelatedto thesmart meter andsmart grid project net ofexpected
SGIG DOE reimbursements.
BGE
BGE is engagedprincipallyinthe purchaseandregulatedretailsale ofelectricityandthe provision oftransmission and distribution
servicesto retailcustomersincentral Maryland, includingtheCityofBaltimore,aswell asthe purchaseandregulatedretailsale of
natural gasandthe provision of distribution servicesto retailcustomersincentral Maryland, includingtheCityofBaltimore. BGE is a
public utilityunder thePublic UtilitiesArticle oftheMarylandAnnotatedCodesubjecttoregulation by theMDPSC asto electric and
gas distribution ratesandservice,theissuancesofcertainsecuritiesandcertainother aspectsof BGE’s operations. BGE is apublic
utilityunder theFederal Power Actsubjecttoregulation by FERCasto transmission ratesandcertainother aspectsof BGE’s
business andbytheU.S. Department ofTransportation asto pipeline safetyandother areasofgasoperations. Specific operations
of BGE are subjecttothejurisdiction ofvariousother Federal,state,regional andlocal agencies. Additionally, BGE is alsosubjectto
NERCmandatoryreliabilitystandards.
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