ComEd 2015 Annual Report Download - page 287

Table of Contents
Combined Notes to Consolidated Financial Statements—(Continued)
(Dollars in millions, except per share data unless otherwise noted)
Constellation merger and integration costs to be recovered upon FERC approval. As of December 31, 2014, ComEd’s regulatory liability of $19
million included $3 million related to over-recovered energy costs and $16 million associated with revenues received for renewable energy
requirements. See  above for further details.
The PECO energy costs represent the electric and gas supply related costs recoverable (refundable) under PECO’s GSA and PGC,
respectively. PECO earns interest on the under-recovered energy and natural gas costs and pays interest on over-recovered energy and natural
gas costs to customers. In addition, the DSP Program costs are presented on a net basis with PECO’s GSA under (over)-recovered energy costs.
See additional discussion below. The PECO transmission costs represent the electric transmission costs recoverable (refundable) under the TSC
under which PECO earns interest on under-recovered costs and pays interest on over-recovered costs to customers. As of December 31, 2015,
PECO had a regulatory liability that included $35 million related to the DSP program, $22 million related to over-recovered natural gas supply costs
under the PGC and $3 million related to over-recovered electric transmission costs. As of December 31, 2014, PECO had a regulatory liability that
included $39 million related to the DSP program, $3 million related the over-recovered electric transmission costs and $16 million related to over-
recovered natural gas supply costs under the PGC.
DSP Program Costs. These amounts represent recoverable administrative costs incurred relating to the filing and procurement associated
with PECO’s PAPUC-approved DSP programs for the procurement of electric supply. The filings and procurements of these DSP Programs are
recoverable through the GSA over each respective term. The original DSP Program had a 29-month term that began January 1, 2011. DSP II and
DSP III each have a 24-month term that began June 1, 2013 and June 1, 2015, respectively. The independent evaluator costs associated with
conducting procurements are recoverable over a 12-month period after the PAPUC approves the results of the procurements. PECO is not earning
a return on these costs. Certain costs included in PECO’s original DSP program related to information technology improvements were recovered
over a 5-year period that began January 1, 2011. PECO earns a return on the recovery of information technology costs. These costs are included
within the energy and transmission programs line item.
The BGE energy costs represent the electric supply, gas supply, and transmission related costs recoverable (refundable) from (to)
customers under BGE’s market-based SOS program, MBR program, and FERC approved transmission rates, respectively. BGE does not earn or
pay interest on under- or over-recovered costs to customers. As of December 31, 2015, BGE’s regulatory asset of $40 million included $12 million
associated with transmission costs recoverable through its FERC approved formula rate and $28 million related to under-recovered electric energy
costs. As of December 31, 2015, BGE’s regulatory liability of $18 million related to $5 million of over-recovered natural gas costs $14 million of
over-recovered transmission costs, offset by $1 million of abandonment costs to be recovered upon FERC approval. As of December 31, 2014,
BGE’s regulatory asset of $15 million included $10 million related to under-recovered electric energy costs, $4 million of Constellation merger and
integration costs and $1 million of transmission costs recoverable through its FERC approved formula rate. As of December 31, 2014, BGE’s
regulatory liability of $7 million related to over-recovered natural gas supply costs.
Deferred storm costs. In the MDPSC’s March 2011 rate order, BGE was authorized to defer $16 million in storm costs incurred in February
2010. BGE earns a return on this regulatory asset and the recovery period was extended for an additional 25 months, in accordance with the
MDPSC approved 2014 electric and natural gas distribution rate case order.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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