ComEd 2013 Annual Report Download - page 34

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Section 7-703 ofthePublic UtilitiesArticle inMarylandsetsforththeRPS requirement, which appliesto all retail electricitysalesin
Marylandbyelectricitysuppliers. TheRPS requirement requiresthat suppliersobtainaspecifiedpercentageofthe electricityitsells
fromTier 1 sources(solar,wind, biomass, methane,geothermal,ocean,fuel cell,small hydroelectric, andpoultrylitter)andTier 2
sources (hydroelectric, other than pumpstoragegeneration,andwaste-to-energy). TheRPS requirement began in 2006, requiring
that suppliersprocure 1.0%and2.5% fromTier 1 andTier 2 sources, respectively, escalatingin 2022 to 22.0%fromTier 1 sources,
includingat least2.0%fromsolar energy, andaphase out ofTier 2 resource optionsby2022.In 2013,8.2%wasrequiredfromTier
1 renewable sources, includingat least0.25% derivedfromsolar energy, and2.5% fromTier 2 renewable sources. Thewholesale
suppliersthat supplypower to thestate’s utilitiesthrough theSOS procurement auctionshavetheobligation,bycontractwiththose
utilities, to complywithandprovideitsproportional share oftheRPS requirements.
Similar to ComEd, PECO and BGE, Generation’s retail electric business mustsource a portion ofthe electric loaditservesinmany
ofthestatesinwhich itdoesbusiness fromrenewable resourcesor approvedequivalentssuch asRECs. Potential regulation and
legislation regardingrenewable andalternative energy resourcescouldincreasethepaceofdevelopment ofwindandother
renewable/alternative energy resources, which couldput downwardpressure on wholesale market pricesfor electricityinsome
marketswhere Exelon operatesgeneration assets. At thesametime,such developmentsmaypresent some opportunitiesfor sales
ofGeneration’s renewable power,includingfromwind, solar, hydroelectric andlandfill gas.
See Note 3 andNote 22 oftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information.
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