Exelon 2014 Annual Report Download - page 83

The number of retail customers participating in customer choice programs was 2,426,921, 2,630,185 and 1,627,150 at
December 31, 2014, 2013 and 2012, respectively, representing 63%, 68% and 43% of total retail customers, respectively. Retail
energy purchased from competitive electric generation suppliers represented 80%, 81% and 65% of ComEd’s retail kWh sales for
the years ended December 31, 2014, 2013 and 2012, respectively.
The changes in ComEd’s Revenue net of purchased power expense for the year ended 2014 compared to the same period in 2013
consisted of the following:
Increase
Weather ............................................................................................... $(16)
Electric distribution revenue .............................................................................. (2)
Transmission revenue ................................................................................... 30
Regulatory required programs ............................................................................. 52
Revenue subject to refund ................................................................................ (9)
Pricing and customer mix ................................................................................ 5
Uncollectible accounts recovery, net ....................................................................... 41
Other ................................................................................................. (4)
Increase in revenue net of purchased power ................................................................. $97
Weather
The demand for electricity is affected by weather conditions. Very warm weather in summer months and very cold weather in other
months are referred to as “favorable weather conditions” because these weather conditions result in increased customer usage.
Conversely, mild weather reduces demand. For the year ended December 31, 2014, unfavorable weather conditions, primarily
during the summer months, reduced Operating revenue net of purchased power expense when compared to prior year.
Heating and cooling degree days are quantitative indices that reflect the demand for energy needed to heat or cool a home or
business. Normal weather is determined based on historical average heating and cooling degree days for a 30-year period in
ComEd’s service territory with cooling degree days generally having a more significant impact to ComEd, particularly during the
summer months. The changes in heating and cooling degree days in ComEd’s service territory for the years ended December 31,
2014 and 2013 consisted of the following:
Twelve Months Ended December 31, % Change
Heating and Cooling Degree-Days 2014 2013 Normal From 2013 From Normal
Heating Degree-Days .............................. 7,027 6,603 6,341 6.4% 10.8%
Cooling Degree-Days .............................. 799 933 842 (14.4)% (5.1)%
Volume
For the year ended December 31, 2014 Revenue net of purchased power expense remained relatively consistent, as compared to
the same period in 2013.
Electric Distribution Revenue
EIMA provides for a performance-based formula rate tariff, which requires an annual reconciliation of the revenue requirement in
effect to the actual costs that the ICC determines are prudently and reasonably incurred in a given year. Under EIMA, distribution
revenue varies from year to year based upon fluctuations in the underlying costs, investments being recovered, allowed ROE, and
other billing determinants. In addition, ComEd’s allowed rate of return on common equity is the annual average rate on 30-year
treasury notes plus 580 basis points, subject to a collar of plus or minus 50 basis points. Therefore, the collar limits favorable and
unfavorable impacts of weather and load on revenue. During the year ended December 31, 2014, distribution revenue decreased $2
million at ComEd, primarily due to lower Operating and maintenance expenses primarily driven by the impacts of certain OPEB plan
design changes, partially offset by increased capital investment. See Operating and Maintenance Expense below, Note 3—
Regulatory Matters and Note 16—Retirement Benefits of the Combined Notes to Consolidated Financial Statements for additional
information.
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