PECO Commends Governor Rendell and Pennsylvania General Assembly for Passing Legislation That Will Successfully Guide the Commonwealth's Energy Future

PECO President and CEO Denis O’Brien today commended Governor Edward G. Rendell and the Pennsylvania General Assembly for working to pass legislation that will further enhance Pennsylvania’s energy independence and enable programs to help consumers manage their energy use.

"We applaud the Administration and the Legislature for successfully addressing many of the energy issues facing Pennsylvanians,” O’Brien said. "We believe this legislation will help ensure a smooth transition to market-based rates in 2011 for PECO electric customers as rate caps expire statewide.”

House Bill 2200 addresses the way in which utilities can purchase power, demand-side management and energy efficiency programs, including smart meters.

"PECO understands the potential impact that transitioning to market-based rates may have on its customers,” O’Brien said. "And through this legislation we will be able to take more steps to help our customers better manage their energy costs, including competitive purchasing of power.”

O’Brien noted that PECO had already begun planning to enhance its energy efficiency programs as outlined in a recent filing with the Public Utility Commission. The utility plans to dedicate more than $50 million for programs and products to help customers manage costs by using energy efficiently. These will include an enhanced compact-fluorescent light-bulb discount program at area retailers, robust Web-based energy audits, and voluntary programs to control air conditioner energy usage during periods of high demand and high cost.

To further assist customers, PECO's plan will give customers the option to prepare for any increase by paying into a 6 percent interest-bearing savings plan. A customer's savings plan payments, plus interest, will then be applied to the customer's bills in 2011. The plan will alternatively allow customers to defer a portion of any initial rate increase by spreading out the amount of the first year's increase during the following two or three years, providing additional time to manage new rates.

The plan also includes:

• Enhanced low-income assistance: A discounted residential rate will be offered to qualifying low-income customers. The discounts vary depending upon the customers' level of income. The discount percentages will be modified to assure that the rates are affordable.
• Consumer education: A multi-million Dollar consumer education campaign will take place for the five-year period from 2008-2012. The campaign includes outreach programs designed to raise awareness and will provide steps customers can take to manage their energy use as the transition to market-based electric rates takes place.

Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (NYSE:EXC). PECO serves 1.6 million electric and 480,000 natural gas customers in southeastern Pennsylvania and employs about 2,500 people in the region. PECO delivered 78.5 billion cubic feet of natural gas and 39.9 billion kilowatt-hours of electricity in 2007. Founded in 1881, PECO is one of the Greater Philadelphia Region's most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations.

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