ComEd 2006 Annual Report Download - page 111

Net Loss. ComEd’s net loss in 2005 was driven by the impairment of goodwill and higher
purchased power expense, partially offset by higher operating revenues due to favorable weather and
due to the impacts of a 2004 charge associated with the accelerated retirement of long-term debt and
lower interest expense.
Operating Revenues.The changes in operating revenues for 2005 compared to 2004 consisted
of the following:
Increase
(decrease)
Weather ..................................................................... $415
Customer choice .............................................................. 81
Rate changes and mix ......................................................... (66)
Volume ...................................................................... (3)
Other ....................................................................... (9)
Retail revenue ............................................................ 418
PJM transmission ............................................................. 58
T&O / SECA rates ............................................................. (28)
Miscellaneous revenues ........................................................ 13
Other revenues ............................................................... 43
Increase in operating revenues .................................................. $461
Weather. Revenues were higher due to favorable weather conditions in 2005 compared to 2004.
The demand for electricity is affected by weather conditions. In ComEd’s service territory, cooling and
heating degree days were 90% and 1% higher, respectively, than the prior year.
Customer choice. All ComEd customers have the choice to purchase energy from a competitive
electric generation supplier. This choice does not impact the volume of deliveries, but affects revenue
collected from customers related to supplied energy and generation service. As of December 31, 2005,
one competitive electric generation supplier was approved to serve residential customers in the
ComEd service territory. However, they are not currently supplying electricity to any residential
customers.
For 2005 and 2004, 33% and 35% of energy delivered to ComEd’s retail customers was provided
by competitive electric generation suppliers or under the PPO.
2005 2004
Retail customers purchasing energy from a competitive electric generation supplier:
Volume (GWhs) (a) ................................................... 19,310 20,939
Percentage of total retail deliveries ...................................... 21% 24%
Retail customers purchasing energy from a competitive electric generation supplier
or the ComEd PPO:
Number of customers at period end ..................................... 21,300 22,200
Percentage of total retail customers ..................................... (b) (b)
Volume (GWhs) (a) ................................................... 30,905 30,426
Percentage of total retail deliveries ...................................... 33% 35%
(a) One GWh is the equivalent of one million kilowatthours (kWh).
(b) Less than one percent.
Rate changes and mix. The change was primarily due to the increased wholesale market price of
electricity and other adjustments to the energy component of the CTC calculation which resulted in a
decrease of $64 million to $105 million in 2005 as compared to 2004.
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