Exelon 2015 Annual Report Download - page 150

Table of Contents
The changes in BGE’s Operating revenue net of purchased power and fuel expense for the year ended December 31, 2015 compared to the
same period in 2014 and for the year ended December 31, 2014 compared to the same period in 2013, respectively, consisted of the following:
2015 2014
Increase (Decrease) Increase (Decrease)
Electric Gas Total Electric Gas Total
Distribution rate increase $ 20 $ 35 $ 55 $ 57 $ 28 $ 85
Regulatory required programs 4 2 6 13 (1) 12
Transmission revenue 11 — 11 10 — 10
Other 10 — 10 (13) 10 (3)
Total increase $ 45 $ 37 $ 82 $ 67 $ 37 $104
 The demand for electricity and gas is affected by weather and usage conditions. The MDPSC has allowed BGE to
record a monthly adjustment to its electric and gas distribution revenue from all residential customers, commercial electric customers, the majority
of large industrial electric customers, and all firm service gas customers to eliminate the effect of abnormal weather and usage patterns per
customer on BGE’s electric and gas distribution volumes, thereby recovering a specified dollar amount of distribution revenue per customer, by
customer class, regardless of changes in consumption levels. This allows BGE to recognize revenue at MDPSC-approved levels per customer,
regardless of what BGE’s actual distribution volumes were for a billing period. Therefore, while this revenue is affected by customer growth, it 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 and cooling degree days in BGE’s service territory for the year ended December 31, 2015 compared to the same period in 2014 and for the
year ended December 31, 2014 compared to the same period in 2013, respectively, and normal weather consisted of the following:
For the Year Ended
December 31,
Normal
% Change
Heating and Cooling Degree-Days 2015 2014 2015 vs. 2014 From Normal
Heating Degree-Days 4,666 5,091 4,663 (8.3)% 0.1%
Cooling Degree-Days 924 732 875 26.2% 5.6%
For the Year Ended
December 31,
Normal
% Change
Heating and Cooling Degree-Days 2014 2013 2014 vs. 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)%
. The increase in distribution revenue for the year ended December 31, 2015 was primarily due to the impact of the
new electric and natural gas distribution rates charged to customers that became effective in December 2014 in accordance with the MDPSC
approved electric and natural gas distribution rate case order.
The increase in distribution revenue for the year ended December 31, 2014 was primarily due to the impact of new electric and natural gas
distribution rates charged to customers that became
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Source: BALTIMORE GAS & ELECTRIC CO, 10-K, February 10, 2016 Powered by Morningstar® Document Research℠
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