ComEd 2006 Annual Report Download - page 20

ComEd and PECO
Exelon’s regulated energy delivery operations consist of ComEd and PECO.
ComEd is engaged principally in the purchase and regulated retail and wholesale sale of electricity
and the provision of distribution and transmission services to a diverse base of residential, commercial,
industrial and wholesale customers in northern Illinois. ComEd is subject to extensive regulation by the
ICC as to rates and service, the issuance of securities, and certain other aspects of ComEd’s
operations. ComEd is also subject to regulation by FERC as to transmission rates and certain other
aspects of ComEd’s business.
ComEd’s retail service territory has an area of approximately 11,300 square miles and an
estimated population of eight million. The service territory includes the City of Chicago, an area of
about 225 square miles with an estimated population of three million. ComEd has approximately
3.8 million customers.
ComEd’s franchises are sufficient to permit it to engage in the business it now conducts. ComEd’s
franchise rights are generally nonexclusive rights documented in agreements and, in some cases,
certificates of public convenience issued by the ICC. With few exceptions, the franchise rights have
stated expiration dates ranging from 2007 to 2061. ComEd anticipates working with the appropriate
agencies to extend or replace the franchise agreements prior to expiration.
PECO is engaged principally in the purchase and regulated retail sale of electricity and the
provision of transmission and distribution services to residential, commercial and industrial customers
in southeastern Pennsylvania, including the City of Philadelphia, as well as the purchase and regulated
retail sale of natural gas and the provision of distribution services to residential, commercial and
industrial customers in the Pennsylvania counties surrounding the City of Philadelphia. PECO is
subject to extensive regulation by the PAPUC as to electric and gas rates and service, the issuances of
certain securities and certain other aspects of PECO’s operations. PECO is also subject to regulation
by FERC as to transmission rates and certain other aspects of PECO’s business.
PECO’s retail service territory has an area of approximately 2,100 square miles and an estimated
population of 3.8 million. PECO provides electric delivery service in an area of approximately 2,000
square miles, with a population of approximately 3.7 million, including 1.5 million in the City of
Philadelphia. Natural gas service is supplied in an area of approximately 1,900 square miles in
southeastern Pennsylvania adjacent to the City of Philadelphia, with a population of approximately 2.3
million. PECO delivers electricity to approximately 1.6 million customers and natural gas to
approximately 480,000 customers.
PECO has the necessary authorizations to furnish regulated electric and gas service in the various
municipalities or territories in which it now supplies such services. PECO’s authorizations consist of
charter rights and certificates of public convenience issued by the PAPUC and/or “grandfathered
rights.” These rights are generally unlimited as to time and are generally exclusive from competition
from other electric and gas utilities. In a few defined municipalities, PECO’s gas service territory
authorizations overlap with that of another gas utility but PECO does not consider those situations as
posing a material competitive or financial threat.
ComEd’s and PECO’s kWh sales and load of electricity are generally higher during the summer
periods and winter periods, when temperature extremes create demand for either summer cooling or
winter heating. ComEd’s highest peak load occurred on August 1, 2006 and was 23,613 MWs; its
highest peak load during a winter season occurred on February 5, 2007 and was 16,207 MWs.
PECO’s highest peak load occurred on August 3, 2006 and was 8,932 MWs; its highest peak load
during a winter season occurred on December 20, 2004 and was 6,838 MWs.
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