ComEd 2015 Annual Report Download - page 264

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Operating revenue for any differences between the revenue requirement in effect and ComEd’s best estimate of the revenue requirement expected
to be approved by the ICC for that year’s reconciliation. As of December 31, 2015, and December 31, 2014, ComEd had a regulatory asset
associated with the electric distribution formula rate of $189 million and $371 million, respectively. The regulatory asset associated with electric
distribution true-up is amortized to Operating revenue in ComEd’s Consolidated Statement of Operations and Comprehensive Income as the
associated amounts are recovered through rates.
Participating utilities are also required to file an annual update on their AMI implementation progress. On April 1, 2015, ComEd filed an
annual progress report on its AMI Implementation Plan with the ICC, which allows for the installation of more than four million smart meters
throughout ComEd’s service territory by 2018. To date, approximately two million smart meters have been installed in the Chicago area.
Pursuant to EIMA, ComEd annually contributes $4 million for customer education for as long as the AMI Deployment Plan remains in effect.
Additionally, ComEd contributes $10 million annually through 2016 to fund customer assistance programs for low-income customers, which will not
be recoverable through rates.

For each of the following years, the ICC approved the following total increases/(decreases) in ComEd’s electric distributions formula rate filings:
Annual Distribution Filings 2015 2014 2013
ComEd’s requested total revenue requirement
(decrease) increase $ (50) $ 269 $ 353
Final ICC Order
Initial revenue requirement increase $ 85 $ 160 $ 160
Annual reconciliation (decrease) increase (152) 72 181
Total revenue requirement (decrease) increase $ (67) $ 232 $ 341
Allowed Return on Rate Base:
Initial revenue requirement 7.05% 7.06% 6.94%
Annual reconciliation 7.02% 7.04% 6.94%
Allowed ROE:
Initial revenue requirement 9.14% 9.25% 8.72%
Annual reconciliation 9.09% 9.20% 8.72%
Effective date of rates January 2016 January 2015 January 2014
(a) Includes a reduction of 5 basis points for a reliability performance metric penalty.

In October 2013, the ICC opened an investigation (the Investigation), in response to a complaint filed by the Illinois Attorney General, to
change the formula rate structure by requesting three changes: the elimination of the income tax gross-up on the weighted average cost of capital
used to calculate interest on the annual reconciliation balance, the netting of associated accumulated deferred income
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(a) (a)
(a) (a)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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