Exelon 2015 Annual Report Download - page 138

Table of Contents
revenue varies from year to year based upon fluctuations in the underlying costs, investments being recovered, allowed ROE, and other billing
determinants. ComEd’s allowed ROE 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, 2015, electric distribution revenue increased $180 million, primarily due to higher Operating and maintenance expense and increased
capital investment, partially offset by lower allowed ROE due to decreased treasury rates. During the year ended December 31, 2014, electric
distribution revenue decreased $2 million, primarily due to lower Operating and maintenance expense resulting from certain OPEB plan design
changes, partially offset by increased capital investment. See Operating and Maintenance Expense below and Note 3—Regulatory Matters of the
Combined Notes to Consolidated Financial Statements for additional information.
Under a FERC-approved formula, transmission revenue varies from year to year based upon fluctuations in the
underlying costs, investments being recovered and other billing determinants, such as the highest daily peak load from the previous calendar year.
During the years ended December 31, 2015 and 2014, ComEd recorded increased transmission revenue primarily due to higher Operating and
maintenance expense and increased capital investment. See Operating and Maintenance Expense below and Note 3—Regulatory Matters of the
Combined Notes to Consolidated Financial Statements for additional information.
This represents the change in Operating revenue collected under approved riders to recover costs incurred
for regulatory programs such as ComEd’s energy efficiency and demand response and purchased power administrative costs. The riders are
designed to provide full and current cost recovery. An equal and offsetting amount has been included in Operating and maintenance expense. See
Operating and maintenance expense discussion below for additional information on included programs.
Uncollectible accounts recovery, net, represents recoveries under ComEd’s uncollectible accounts
tariff. See Operating and maintenance expense discussion below for additional information on this tariff.
For the year ended December 31, 2015, the decrease in Revenue net of purchased power as a result of pricing
and customer mix is primarily attributable to lower overall effective rates due to increased usage across all major customer classes and change in
customer mix. For the year ended December 31, 2014, the increase in Revenue net of purchased power as a result of pricing and customer mix is
primarily attributable to higher overall effective rates due to decreased usage across all major customer classes and change in customer mix.
ComEd records revenue subject to refund based upon its best estimate of customer collections that may be
required to be refunded. Revenue net of purchase power expense was higher for the year ended December 31, 2015, due to the one-time revenue
refund recorded in 2014 associated with the 2007 Rate Case.
Other revenue, which can vary period to period, includes rental revenue, revenue related to late payment charges, assistance
provided to other utilities through mutual assistance programs, recoveries of environmental costs associated with MGP sites, and recoveries of
energy procurement costs.
131
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
The information contained herein may not be copied, adapted or distributed and is not warranted to be accurate, complete or timely. The user assumes all risks for any damages or losses arising from any use of this information,
except to the extent such damages or losses cannot be limited or excluded by applicable law. Past financial performance is no guarantee of future results.