UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of
1934
October
5, 2007
Date
of Report (Date of earliest event reported)
|
|
|
|
|
|
|
Commission File
Number
|
|
Exact
Name of Registrant as Specified in Its Charter; State of Incorporation;
Address of Principal Executive Offices; and Telephone
Number
|
|
IRS
Employer
Identification Number
|
| |
|
|
|
|
|
1-16169
|
|
EXELON
CORPORATION
(a
Pennsylvania corporation)
10
South Dearborn Street
P.O.
Box 805379
Chicago,
Illinois 60680-5379
(312)
394-7398
|
|
23-2990190
|
|
1-1839
|
|
COMMONWEALTH
EDISON COMPANY
(an
Illinois corporation)
440
South LaSalle Street
Chicago,
Illinois 60605-1028
(312)
394-4321
|
|
36-0938600
|
| |
|
|
|
|
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
£
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
£
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
£
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
£
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Section
8 – Other Events
Item
8.01 Other Events.
As
previously disclosed, on March 1, 2007, Exelon Corporation's (Exelon) subsidiary
Commonwealth Edison Company (ComEd) filed a request with the Federal Energy
Regulatory Commission (FERC) seeking approval to increase the rate it receives
for transmission services. On June 5, 2007, the FERC issued an order
that conditionally approved ComEd's proposal to implement a formula based
transmission rate, effective as of May 1, 2007, but subject to
refund. The FERC order provided that further hearing and settlement
procedures be conducted to determine the reasonableness of certain elements
of
ComEd's formula rate. The issues set for hearing included the 11.70% base
return
on equity proposed by ComEd and various elements of rate base. On
October 5, 2007, ComEd made a filing with the FERC seeking approval of a
settlement agreement reached among ComEd, the FERC Trial Staff and the active
interveners in the proceeding. The settlement agreement is a
comprehensive resolution of all issues in the proceeding, other than ComEd's
pending request for rehearing on incentive returns on new
investment. The agreement establishes the treatment of costs and
revenues in the determination of network service transmission rates and the
process for updating the formula rate calculation on an annual
basis. The agreement provides for a base return on equity on
transmission rate base of 11.0% plus an adder of 0.50% in recognition of
ComEd’s
participation in a Regional Transmission Organization, a cap of 58% on the
equity component of ComEd's capital structure (declining to 55% by 2011),
and a
debt-only return of 6.61% on ComEd's pension asset. The
agreement results in a first year transmission network service revenue
requirement of $363.4 million, or a $23.7 million reduction from the
$387.1 million revenue requirement conditionally approved by the FERC in
its
June 5, 2007 order. The reduction in the revenue requirement will be
implemented upon receipt of the FERC approval of the settlement
agreement. ComEd cannot predict whether the FERC will ultimately
approve the settlement or when these proceedings will be completed. A
copy of the filing is available at the following
website: http://www.pjm.com/documents/to-ferc-filings.html#2007.
*
* * *
*
This
combined Form 8-K is being furnished separately by Exelon and ComEd
(Registrants). Information contained herein relating to any
individual Registrant has been furnished by such Registrant on its own
behalf. No Registrant makes any representation as to information
relating to any other Registrant.
This
Current Report includes forward-looking statements within the meaning of
the
Private Securities Litigation Reform Act of 1995, that are subject to risks
and
uncertainties. The factors that could cause actual results to differ materially
from these forward-looking statements include those discussed herein as well
as
those discussed in (1) Exelon’s and ComEd’s 2006 Annual Report on Form 10-K in
(a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations and (c) ITEM 8. Financial
Statements and Supplementary Data: Note 18; (2) Exelon’s and ComEd’s Second
Quarter 2007 Quarterly Report on Form 10-Q in (a) Part II, Other Information,
ITEM 1A. Risk Factors and (b) Part I, Financial Information, ITEM 1. Financial
Statements: Note 13; and (3) other factors discussed in filings with the
Securities and Exchange Commission by the Registrants. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which
apply only as of the date of this Current Report. Neither of the Registrants
undertakes any obligation to publicly release any revision to its
forward-looking statements to reflect events or circumstances after the date
of
this Current Report.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, each Registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
| |
EXELON
CORPORATION
|
|
| |
|
|
| |
/s/
John F.
Young
|
|
| |
John
F. Young
|
|
| |
Executive
Vice President, Finance and Markets
|
|
| |
and
Chief Financial Officer
|
|
| |
Exelon
Corporation
|
|
| |
|
|
| |
|
|
| |
COMMONWEALTH
EDISON COMPANY
|
|
| |
|
|
| |
/s/
Robert K.
McDonald
|
|
| |
Robert
K. McDonald
|
|
| |
Senior
Vice President, Chief Financial Officer,
|
|
| |
Treasurer
and Chief Risk Officer
|
|
| |
Commonwealth
Edison Company
|
|
October
9, 2007