Exelon 2014 Annual Report Download - page 84

Transmission Revenue
Under a FERC approved formula, transmission revenue varies from year to year based upon fluctuations in the underlying costs,
investments being recovered and other billing determinants, such as the highest daily peak load from the previous calendar year.
During the year ended December 31, 2014, ComEd recorded increased revenue of $30 million due to increased capital investments.
See Note 3—Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information.
Regulatory Required Programs
This represents the change in Operating revenue collected under approved riders to recover costs incurred for regulatory programs
such as ComEd’s energy efficiency and demand response and purchase power administrative costs. The riders are designed to
provide full and current cost recovery. The costs of these programs are included in Operating and maintenance expense. Refer to
the Operating and maintenance expense discussion below for additional information on included programs.
Uncollectible Accounts Recovery, Net
Uncollectible accounts recovery, net represents recoveries under ComEd’s uncollectible accounts tariff. See the Operating and
maintenance expense discussion below for additional information on this tariff.
Pricing and Customer Mix
The increase in Revenue net of purchased power as a result of pricing and customer mix is primarily attributable to higher overall
effective rates due to decreased usage across all major customer classes and change in customer mix for the years ended
December 31, 2014, and 2013, respectively.
Revenue Subject to Refund
ComEd records revenue subject to refund based upon its best estimate of customer collections that may be required to be refunded.
For the year ended December 31, 2014, ComEd recorded $9 million of revenue subject to refund associated with Rider AMP. See
Note 3—Regulatory Matters of the Combined Notes to Consolidated Financial statements for additional information.
Other
Other revenue, which can vary period to period, includes rental revenue, revenue related to late payment charges, assistance
provided to other utilities through mutual assistance programs and recoveries of environmental costs associated with MGP sites,
recovery of energy procurement costs, for which an equal and offsetting amount is reflected in Depreciation and amortization
expense during the periods presented.
The changes in ComEd’s Revenue net of purchased power expense for 2013 compared to 2012 consisted of the following:
Increase
Weather ............................................................................................... $(17)
Volume ............................................................................................... (2)
Electric distribution revenue .............................................................................. 168
Discrete impacts of the 2012 distribution rate case order ....................................................... 13
Transmission revenue ................................................................................... 14
Regulatory required programs ............................................................................. 20
Uncollectible accounts recovery, net ....................................................................... (58)
Other ................................................................................................. 16
Increase in revenue net of purchased power ................................................................. $154
Weather
For the year ended December 31, 2013, the increase in Revenue net of purchased power expense was offset by unfavorable
weather conditions as a result of the mild weather in 2013 compared to the same period in 2012.
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