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
April 2, 2002
(Date of earliest
event reported)
Commission File Name of Registrant; State of Incorporation; Address of IRS Employer
Number Principal Executive Offices; and Telephone Number Identification Number
- --------------------- --------------------------------------------------------- -------------------------
1-16169 EXELON CORPORATION 23-2990190
(a Pennsylvania corporation)
10 South Dearborn Street - 37th Floor
P.O. Box 805379
Chicago, Illinois 60680-5379
(312) 394-7398
1-1839 COMMONWEALTH EDISON COMPANY 36-0938600
(an Illinois corporation)
10 South Dearborn Street - 37th Floor
P.O. Box 805379
Chicago, Illinois 60680-5379
(312) 394-4321
Item 5. Other Events
On April 2, 2002 Exelon Corporation and Commonwealth Edison Company issued the
following press release.
EXELON LOGO
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News Release
From: Exelon Corporation FOR IMMEDIATE RELEASE
Investor Relations ----------------------
P.O. Box 805379 April 2, 2002
Chicago, IL 60680-5379
Contact: Linda Byus, CFA
312.394.7696
Marybeth Flater
312.394.8354
ICC Sets Interim Residential Delivery Service Tariffs for ComEd
CHICAGO - Yesterday, the Illinois Commerce Commission issued an interim order in
Commonwealth Edison's Delivery Services Rate Case. ComEd is Exelon Corporation'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 these 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 revisited.
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This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
statements are based on management's current expectations and are subject to
uncertainty and changes in circumstances. Actual results may vary materially
from the expectations contained herein. The forward-looking statements herein
include statements about future financial and operating results of Exelon.
Economic, business, competitive and/or regulatory factors affecting Exelon's
businesses generally could cause actual results to differ materially from those
described herein. For a discussion of the factors that could cause actual
results to differ materially, please see Exelon's filings with the Securities
and Exchange Commission, particularly those discussed in "Management's
Page 2
Discussion and Analysis of Financial Condition and Results of Operations --
Outlook" in Exelon's 2001 Annual Report. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of the
date of this press release. Exelon does not undertake any obligation to publicly
release any revisions to these forward-looking statements to reflect events or
circumstances after the date of this press release.
###
Exelon Corporation is one of the nation's largest electric utilities with
approximately five million customers and more than $15 billion in annual
revenues. The company has one of the industry's largest portfolios of
electricity generation capacity, with a nationwide reach and strong positions in
the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately
five million customers in Illinois and Pennsylvania and gas to 425,000 customers
in the Philadelphia area. The company also has holdings in such competitive
businesses as energy, infrastructure services and energy services. Exelon is
headquartered in Chicago and trades on the NYSE under the ticker EXC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
EXELON CORPORATION
COMMONWEALTH EDISON COMPANY
/S/ Ruth Ann M. Gillis
-----------------------------------
Ruth Ann M. Gillis
Senior Vice President and
Chief Financial Officer
Exelon Corporation
April 2, 2002