Exelon 2014 Annual Report Download - page 96

Therefore, while this revenue is affected by customer growth, they will not be affected by actual weather or usage conditions. BGE
bills or credits impacted customers in subsequent months for the difference between approved revenue levels under revenue
decoupling and actual customer billings.
Heating and cooling degree days are quantitative indices that reflect the demand for energy needed to heat a home or business.
Normal weather is determined based on historical average heating and cooling degree days for a 30-year period in BGE’s service
territory. The changes in heating degree days in BGE’s service territory for the year ended December 31, 2014 compared to the
same period in 2013 and normal weather consisted of the following:
Twelve Months Ended
December 31,
Normal
% Change
Heating and Cooling Degree-Days 2014 2013 From 2013 From Normal
Heating Degree-Days .................................... 5,091 4,744 4,662 7.3% 9.2%
Cooling Degree-Days .................................... 732 869 876 (15.8)% (16.4)%
Distribution Rate Increases.
The increase in Operating revenue net of purchased power and fuel expense was primarily due to MDPSC rate orders effective
December 13, 2013 and December 15, 2014 approving increases to electric and natural gas distribution rates charged to customers.
See Note 3—Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information.
Commodity Margin.
The increase in Revenue net of purchased power and fuel expense as a result of commodity margin for the year ended
December 31, 2014 compared to the same period in 2013 was primarily due the higher gas margins earned due to extreme cold
weather during the first quarter of 2014 under BGE’s market-based rate incentive mechanism. See Note 12—Derivative Financial
Instruments of the Combined Notes to the Consolidated Financial Statements for further information.
Regulatory Required Programs.
This represents the change in revenue collected under approved riders to recover costs incurred for the energy efficiency and
demand response programs as well as administrative and commercial and industrial customer bad debt costs for SOS. The riders
are designed to provide full recovery, as well as a return in certain instances. The costs of these programs are included in operating
and maintenance expense, depreciation and amortization expense and taxes other than income taxes. The increase in electric
revenue during the year ended December 31, 2014 compared to the same period in 2013 was due to the recovery of higher energy
efficiency program costs.
Transmission.
The increase in transmission revenue rates for the year ended December 31, 2014 compared to the same period in 2013 was
primarily due to the impact of new transmission rates charged to customers that became effective in June 2014. See Note 3—
Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information.
Other.
Other revenue decreased during the year ended December 31, 2014 compared to the same period in 2013. Other revenue, which
can vary from period to period, includes miscellaneous revenue such as service application and late payment fees.
The changes in BGE’s Revenue net of purchased power and fuel expense for the year ended December 31, 2013 compared to the
same period in 2012 consisted of the following:
Increase (Decrease)
Electric Gas Total
2012 residential customer rate credit ............................................................ $ 82 $31 $113
Distribution rate increases ..................................................................... 69 24 93
Regulatory required programs .................................................................. 36 6 42
Other ...................................................................................... 26 4 30
Total increase ............................................................................... $213 $65 $278
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