Exelon 2015 Annual Report Download - page 269

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
to submit a plan to allow its low-income CAP customers to purchase their generation supply from EGSs beginning in April 2014. In May 2013,
PECO filed its CAP Shopping Plan with the PAPUC. By an Order entered on January 24, 2014, the PAPUC approved PECO’s plan, with
modifications, to make CAP shopping available beginning April 15, 2014. On March 20, 2014, the Office of Consumer Advocate (OCA) and low-
income advocacy groups filed an appeal and emergency request for a stay with the Pennsylvania Commonwealth Court, claiming that the PAPUC-
ordered CAP Shopping plan does not contain sufficient protections for low-income customers. On July 14, 2015, the Court issued opinions on the
OCA and low-income advocacy group appeal. Specifically, the Court remanded the issue to the PAPUC with instructions that it approve a rule
revision to the PECO CAP Shopping Plan that would prohibit CAP customers from entering into contracts with an EGS that would impose early
cancellation/termination fees. The PAPUC has appealed the Court’s decision. PECO does not have information at this time as to what action it
may be required to take following remand to the PAPUC.
On December 4, 2014, the PAPUC approved PECO’s third DSP Program. The program has a 24-month term from June 1, 2015 through
May 31, 2017, and complies with electric generation procurement guidelines set forth in Act 129. Under the program, PECO is procuring electric
supply through four competitive procurements for fixed price full requirements contracts of two years or less for the residential classes and small
and medium commercial classes and spot market price full requirement contracts for the large commercial and industrial class load. Beginning in
June 2016, the medium commercial class (101-500 kW) will move to spot market pricing. As of December 31, 2015, PECO entered into contracts
with PAPUC-approved bidders, including Generation, resulting from the first two of its four scheduled procurements. Charges incurred for electric
supply procured through contracts with Generation are included in purchased power from affiliates on PECO’s Consolidated Statement of
Operations and Comprehensive Income.
On March 12, 2015, PECO settled the CAP Design with the Office of Consumer Advocates (OCA) and Low Income Advocates, and filed the
proposed plan with the PAPUC on March 20, 2015. The program design changes the rate structure of PECO’s CAP to make the bills more
affordable to customers enrolled in the assistance program. The CAP discounts continue to be recovered through PECO’s universal service fund
cost. On July 8, 2015, the CAP Design was approved by the PAPUC. PECO plans to implement the program changes in October 2016.
Smart Meter and Smart Grid Investments (Exelon and PECO). In April 2010, pursuant to Act 129 and the follow-on Implementation Order
of 2009, the PAPUC approved PECO’s Smart Meter Procurement and Installation Plan (SMPIP), under which PECO will install more than
1.6 million electric smart meters and an AMI communication network by 2020. PECO is currently in the second phase of the SMPIP and has
deployed substantially all remaining smart meters as of December 31, 2015, for a total of 1.7 million smart meters. In total, PECO currently
expects to spend up to $589 million, excluding the cost of the original meters, on its smart meter infrastructure and approximately $155 million on
smart grid investments through final deployment of which $200 million has been funded by SGIG. As of December 31, 2015, PECO has spent
$578 million and $155 million on smart meter and smart grid infrastructure, respectively, not including the DOE reimbursements received.
Recovery of smart meter costs will be reflected in base rates effective January 1, 2016.
Energy Efficiency Programs (Exelon and PECO). PECO’s PAPUC-approved Phase I EE&C Plan had a four-year term that began on
June 1, 2009 and concluded on May 31, 2013. The Phase I plan set forth how PECO would meet the required reduction targets established by Act
129’s EE&C provisions. On November 15, 2013, PECO filed its final compliance report with the PAPUC communicating PECO had met all Phase I
reduction targets.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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