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Exelon Corporation Updates on Multi-Year Rate Plans

Strategic Insights

— 1 min read

Exelon Corporation, a leading energy company in the US, recently updated its multi-year rate plans for its subsidiaries, Commonwealth Edison Company (ComEd) and Baltimore Gas and Electric Company (BGE). The updates come as the companies face heightened regulatory scrutiny and increasing pressure to invest in infrastructure and meet environmental targets. According to the latest filings with the Securities and Exchange Commission (SEC), ComEd and BGE have requested rate increases to ensure their financial stability and support future growth.

Key Takeaways:

  • ComEd's Multi-Year Rate Plan (MRP) and Multi-Year Grid Plan (Grid Plan) were filed with the Illinois Commerce Commission (ICC) in January 2023, requesting returns on equity (ROE) of 10.50-10.65%, capital structures between 50.58-51.19% equity, and average rate base between $15.4 to $18.3 billion in 2024-2027.
  • The ICC approved a modified MRP, which ComEd estimates would result in year-over-year rate increases of approximately $450 million, $14 million, $6 million, and $31 million in 2024, 2025, 2026, and 2027, respectively, based on an ROE of 8.905% and an approved rate base of $13.8 billion for 2024-2027.
  • BGE's Multi-Year Plan was filed with the Maryland Public Service Commission (MDPSC) in February 2023, requesting total electric revenue requirement increases of $85 million, $103 million, and $125 million in 2024, 2025, and 2026, respectively, and natural gas revenue requirement increases of $158 million, $77 million, and $54 million in 2024, 2025, and 2026, respectively.
  • Exelon Corporation reaffirms 2023 Adjusted (non-GAAP) Operating Earnings guidance range of $2.32-$2.40 per share.

Statistics:

  • ComEd's requested revenue increases for 2024-2027: $968 million, $181 million, $163 million, and $175 million, respectively.
  • BGE's requested revenue increases for 2024-2026: $85 million, $103 million, and $125 million for electricity, and $158 million, $77 million, and $54 million for natural gas, respectively.
  • ICC-approved rate base for ComEd for 2024-2027: $13.8 billion.
  • MDPSC-approved rate increases for BGE for 2024-2026: $41 million, $113 million, and $25 million for electricity, and $126 million, $62 million, and $41 million for natural gas, respectively.

Sources:

  • Exelon Corporation's Form 8-K filing dated December 14, 2023
  • Commonwealth Edison Company's Multi-Year Rate Plan filed with the Illinois Commerce Commission on January 10, 2023
  • Baltimore Gas and Electric Company's Multi-Year Plan filed with the Maryland Public Service Commission on February 14, 2023

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