ComEd 2013 Annual Report Download - page 87

Thenumber ofcustomerselectingto selectacompetitive electric generation supplier affectselectric SOS revenuesandpurchased
power expense.Thenumber ofcustomerselectingto selectacompetitive natural gassupplier affectsgascostadjustment revenues
andpurchasednatural gasexpense.All BGE customershavethechoice to purchase energy fromacompetitive electric generation
supplier. This customer choiceofelectric generation suppliersdoesnot impactthevolumeofdeliveries, but affectsrevenue
collectedfromcustomersrelatedto SOS. Thenumber ofretailcustomerspurchasingelectricityfromacompetitive electric
generation supplier was399,000,362,000 and314,000 at December 31,2013,2012 and2011,respectively, representing32%, 29%
and25% oftotal retailcustomers, respectively. Retaildeliveriespurchasedfromcompetitive electric generation suppliers
represented61%, 60%and 58% of BGE’s retailkWh salesfor theyearsendedDecember 31,2013,2012 and2011,respectively.
Thenumber ofretailcustomerspurchasingnatural gasfromacompetitive natural gassupplier was172,000,143,000 and118,000
at December 31,2013,2012 and2011,respectively, representing26%, 22%and18% oftotal retailcustomers, respectively. Retail
deliveriespurchasedfromcompetitive natural gassuppliersrepresented 54%, 56% and52%of BGE’s retailmmcf salesfor the
yearsendedDecember 31,2013,2012 and2011,respectively.
ThechangesinBGE’s operatingrevenuesnet ofpurchasedpower andfuel expensefor theyear endedDecember 31,2013
comparedto thesame periodin 2012 consistedofthefollowing:
Increase (Decrease)
Electric Gas Total
2012 Residential customer rate credit(a)......................................................... $ 82$31 $113
Pricing ..................................................................................... 69 2493
Regulatoryprogramcostrecovery .............................................................. 36642
Other ...................................................................................... 26430
Total increase............................................................................... $213 $65 $278
(a)InaccordancewiththeMDPSC order approvingExelon’s merger withConstellation,theresidential customer rate creditis not recoverable from BGE’s customers.
Exelon madea$66 million equitycontribution to BGE inthesecondquarter of2012 to fundtheafter-taxamount ofthe rate creditasdirectedintheMDPSC order
approvingthemerger transaction.
Revenue Decoupling. Thedemandfor electricityandgasisaffectedbyweather andusageconditions. TheMDPSC hasallowed
BGE to recordamonthlyadjustment to itselectric andgas distribution revenuesfromall residential customers, commercial electric
customers, themajorityoflargeindustrial electric customers, andall firmservicegascustomersto eliminate theeffectofabnormal
weather andusage patternsper customer on BGE’s electric andgas distribution volumes, thereby recoveringaspecifieddollar
amount of distribution revenuesper customer,bycustomer class, regardless ofchangesinconsumption levels. This allows BGE to
recognizerevenuesat MDPSC-approvedlevelsper customer,regardless ofwhat BGE’s actual distribution volumeswere for a billing
period. Therefore, while theserevenuesare affectedbycustomer growth, theywill not beaffectedbyactual weather or usage
conditions. BGE billsor creditsimpactedcustomersinsubsequent months for thedifferencebetween approvedrevenue levelsunder
revenue decouplingandactual customer billings.
Heatingandcoolingdegree days are quantitativeindicesthat reflectthedemandfor energy neededto heat a homeorbusiness.
Normal weather is determinedbasedon historical averageheatingandcoolingdegree days for a 30-year periodinBGE’s service
territory. Thechangesinheatingdegree days inBGE’s service territoryfor theyear endedDecember 31,2013 comparedto the
same periodin 2012 andnormal weather consistedofthefollowing:
Heating and Cooling Degree-Days 2013 2012 Normal
% Change
From 2012 From Normal
TwelveMonths EndedDecember 31,
HeatingDegree-Days............................................ 4,744 3,9604,66119.8% 1.8%
CoolingDegree-Days............................................ 869 1,022 864 (15.0)% 0.6%
2012 Residential Customer Rate Credit.
Theincreasein operatingrevenuesnet ofpurchasedpower andfuel expensefor theyear endedDecember 31,2013 comparedto
thesame periodin 2012 wasdue to theresidential customer rate credit providedin 2012 asaresult oftheMDPSC’s order approving
Exelon’s merger withConstellation.
Pricing.
Theincreasein operatingrevenuesnet ofpurchasedpower andfuel expenseasaresult ofpricingfor theyear endedDecember 31,
2013 comparedto thesame periodin 2012 wasprimarilydue to theimpactofthenewelectric andnatural gas distribution rates
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