CHICAGO, April 2, 2002 — The Illinois Commerce Commission has issued an interim order in Commonwealth Edison’s Delivery Services Rate Case. ComEd is Exelon Corp.’s regulated Illinois delivery company.
The order sets new delivery rates for residential customers choosing a new supplier, beginning May 1, 2002. Traditional bundled rates — rates paid by residential customers that retain ComEd as their electricity supplier — are not affected by this Order and will remain frozen through 2004.
The rates for business customers taking delivery services are not impacted by the Order. The potential revenue impact of the interim order is not material in 2002.
The interim order is based on a 2000 test year and approves a $1.515 billion per year jurisdictional distribution revenue requirement and a $3.59 billion distribution rate base. In addition, the interim order includes an 8.99% weighted average cost of capital with an 11.72% return on equity, incorporating an agreement that ComEd reached with major parties in the case.
The interim order approved the vast majority of costs ComEd requested and makes no findings of prudence disallowances. It acknowledges that ComEd and other parties have agreed to an audit of ComEd’s test year expenditures. The purpose of the audit is to further analyze and establish the reasonableness of past investments and expenditures. ComEd believes that it has already provided sufficient evidence during the rate case proceeding to demonstrate the reasonableness of investments.
ComEd will participate fully in the audit of these expenditures, and is confident that the results of the audit will show that its expenditures were appropriate and justified. ComEd’s customers are enjoying proven , increased service reliability as a result of those investments, with both average interruption frequency and outage duration improvements on the order of 40% or more. The audit started in late March 2002 and is expected to take about six months. A final order is expected in April 2003, at which time non-residential delivery rates will also be re-visited.
Commonwealth Edison is a unit of Chicago-based Exelon Corp., one the nation’s largest electric utilities with more than $15 billion in revenues and a customer base of five million. ComEd provides service to more than 3.4 million customers across Northern Illinois, or 70 percent of the state’s population.