ComEd 2015 Annual Report Download - page 29

Table of Contents
ComEd’s, PECO’s and BGE’s electric supply for its customers is primarily procured through contracts as
required by the ICC, PAPUC and MDPSC, respectively. ComEd, PECO and BGE procure electricity supply from various approved bidders,
including Generation. Charges incurred for electric supply procured through contracts with Generation are included in Purchased power from
affiliates on ComEd’s, PECO’s and BGE’s Statement of Operations and Comprehensive Income.
PECO’s and BGE’s natural gas supplies are purchased from a number of suppliers for terms of up to three years. PECO and BGE have
annual firm supply from transportation contracts of 132,000 mmcf and 128,000 mmcf, respectively. In addition, to supplement gas supply at times
of heavy winter demands and in the event of temporary emergencies, PECO and BGE have available storage capacity from the following sources:
Peak Natural Gas Sources (in mmcf)
Liquefied Natural
Gas Facility Propane-Air Plant
Underground Storage
Service Agreements
PECO 1,200 150 18,000
BGE 1,055 546 22,000
(a) Natural gas from underground storage represents approximately 28% and 31% of PECO and BGE’s 2015-2016 heating season planned supplies, respectively.
PECO and BGE have long-term interstate pipeline contracts and also participate in the interstate markets by releasing pipeline capacity or
bundling pipeline capacity with gas for off-system sales. Off-system gas sales are low-margin direct sales of gas to wholesale suppliers of natural
gas. Earnings from these activities are shared between the utilities and customers. PECO and BGE make these sales as part of a program to
balance its supply and cost of natural gas.
ComEd, PECO and BGE are also allowed to recover costs associated with energy efficiency and demand
response programs. Each commission approved program seeks to meet mandated electric consumption reduction targets and implement demand
response measures to reduce peak demand. The programs are designed to meet standards required by each respective regulatory agency.
 ComEd’s, PECO’s and BGE’s businesses are capital intensive and requires significant investments, primarily in electric
transmission and distribution and natural gas transportation and distribution facilities, to ensure the adequate capacity, reliability and efficiency of
its system. ComEd’s, PECO’s and BGE’s most recent estimates of capital expenditures for plant additions and improvements for 2016 are $2,425
million, $675 million and $825 million, respectively.
ComEd, PECO and BGE each have ICC, PAPUC and MDPSC, respectively, approved smart meter and smart grid deployment programs to
enhance their distribution systems. The following table summarizes ComEd’s smart meter and PECO’s and BGE’s smart meter and smart grid
technology spending and meter installations as of December 31, 2015:
December 31, 2015
Total Spend from
Inception to Date Total Meters to be Installed Meters Installed to Date
(in millions)
Projected Actual Electric Natural gas Electric Natural gas
ComEd $ 2,615 $1,526 4.0 n/a 2.0 n/a
PECO 818 803 1.7 0.5 1.7 0.5
BGE 527 512 1.3 0.7 1.2 0.6
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(a)
(a)
(b)
(c)
Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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