Exelon 2015 Annual Report Download - page 136

Table of Contents
 ComEd’s Net income for the year ended December 31, 2014
was higher than the same period in 2013 primarily due to the 2013 remeasurement of Exelon’s like-kind exchange tax position and increased
electric distribution and transmission formula rate earnings (reflecting the impacts of increased capital investment), partially offset by unfavorable
weather.
Operating Revenue Net of Purchased Power Expense
There are certain drivers of Operating revenue that are fully offset by their impact on Purchased power expense, such as commodity
procurement costs and participation in customer choice programs. ComEd is permitted to recover electricity procurement costs from retail
customers without mark-up. Therefore, fluctuations in electricity procurement costs have no impact on Revenue net of purchased power expense.
See Note 3—Regulatory Matters of the Combined Notes to Consolidated Financial Statements for additional information on ComEd’s electricity
procurement process.
All ComEd customers have the choice to purchase electricity from a competitive electric generation supplier. Customer choice programs do
not impact ComEd’s volume of deliveries, but do affect ComEd’s Operating revenue related to supplied energy, which is fully offset in Purchased
power expense. Therefore, customer choice programs have no impact on Revenue net of purchased power expense.
Retail deliveries purchased from competitive electric generation suppliers (as a percentage of kWh sales) for the years ended December 31,
2015, 2014 and 2013, consisted of the following:
For the Years Ended December 31,
2015 2014 2013
Electric 76% 80% 81%
Retail customers purchasing electric generation from competitive electric generation suppliers at December 31, 2015, 2014 and 2013
consisted of the following:
December 31, 2015 December 31, 2014 December 31, 2013
Number of
customers
% of total
retail
customers
Number of
customers
% of total
retail
customers
Number of
customers
% of total
retail
customers
Electric 1,655,400 42% 2,426,900 63% 2,630,200 68%
Under an Illinois law allowing municipalities to arrange the purchase of electricity for their participating residents, the City of Chicago
previously participated in ComEd’s customer choice program and arranged the purchase of electricity from Constellation (formerly Integrys), for
those participating residents. In September 2015, the City of Chicago discontinued its participation in the customer choice program and many of
those participating residents resumed their purchase of electricity from ComEd. ComEd’s Operating revenue has increased as a result of the City
of Chicago switching, but that increase is fully offset in Purchased power expense.
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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