Exelon (NYSE:EXC) President and CEO Christopher Crane said on Oct. 26 during the company’s 3Q16 earnings call that while the company is encouraged by the progress that it is making regarding rate matters, “we’re also aware that improving operations and returns at [Pepco Holdings Inc., or] PHI will take time.”
He noted that the New Jersey Board of Public Utilities (BPU) in August approved the Atlantic City Electric rate case settlement, bringing “needed benefits to the New Jersey customers months earlier than” if the company had had to litigate the case.
Crane said: “We plan to refile at each PHI utility again in 2017. It will take two cycles to, what we believe [will], align our revenues with the significant capital being deployed to benefit our customers, improve reliability, and help the environment overall.”
Also speaking on the call was Jonathan (Jack) Thayer, Exelon’s senior executive vice president and CFO, who noted that distribution rate cases have been filed in all of PHI’s jurisdictions and the company expects decisions in 2017, “providing needed revenue relief as we continue to make significant investments on behalf of our customers.”
He added, “Our investments in our utilities are needed to improve the customer experience and create value for customers.”
Referencing the approved settlement in New Jersey, Thayer said that Atlantic City Electric was authorized to increase its electric distribution rate by $45m, and that the increase went into effect immediately.
“This ruling recognizes Atlantic City Electric’s commitment to enhancing its energy infrastructure,” he said, adding that while the settlement is a good start, “[T]here’s more work to be done in the other jurisdictions. We still have rate cases outstanding at the other PHI utilities. In these cases, we’re asking for $326m in revenue requirement increases. These increases reflect recovery on multiple years of smart meter and other capital investments, meant to improve the reliability of the grid across all of PHI jurisdictions. We’re expecting the Pepco Maryland decision in mid-November, followed by Delmarva Maryland in February.”
Thayer also said that Commonwealth Edison (ComEd) made its annual formula rate filing with the Illinois Commerce Commission in 2Q16, with a decision expected in December. The company requested a revenue requirement increase of $132m, he said.
Exelon on Oct. 26 reported GAAP results of $490m in net income in 3Q16, or 53 cents diluted earnings per share, compared to $629m in 3Q15, or 69 cents diluted earnings per share. The company also reported adjusted (non-GAAP) operating results of $841m in net income in 3Q16, or 91 cents diluted earnings per share, compared to $757m in 3Q15, or 83 cents diluted earnings per share.