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PECO Exhibit ABC-3 Supplement No. .X to [ Deleted: 2 ELECTRIC PA. P.U.C. NO. 5 PECO Energy Company Electric Service Tariff COMPANY OFFICE LOCATION 2301 Market Street Philadelphia, Pennsylvania 19101 For List of Communities Served, See Page 4. Issued ,March 17 ., 2016 Effective .June 1, 2017 .J ISSUED BY: C. L. Adams - President & CEO PECO Energy Distribution Company 2301 MARKET STREET PHILADELPHIA, PA. 19101 {Deleted: January j Deleted: 51 1 Deleted: March 1Deleted: 6 NOTICE

abc-3 - PECO | PECO · PECO Exhibit ABC-3 Supplement No . .X to [ Deleted: 2 ELECTRIC PA. P.U.C. NO. 5 PECO Energy Company . Electric Service Tariff . COMPANY OFFICE LOCATION 2301

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PECO Exhibit ABC-3

Supplement No X to [ Deleted 2 ELECTRIC PA PUC NO 5

PECO Energy Company

Electric Service Tariff

COMPANY OFFICE LOCATION

2301 Market Street

Philadelphia Pennsylvania 19101

For List of Communities Served See Page 4

Issued March 17 2016 Effective June 1 2017 J

ISSUED BY C L Adams - President amp CEO PECO Energy Distribution Company

2301 MARKET STREET PHILADELPHIA PA 19101

Deleted January

j Deleted 51

1 Deleted March

1Deleted 6

NOTICE

PECO Exhibit ABC-3

Supplement No~ lo Deleted 2 Tariff Electric Pa PUC No 5

XX Revised Pago No 1 1Deleted SecondPECO Energy Company SuporaedoeXX Revieod Page No 1 Deleted Firat

LIST OF CHANGES MADE BY THIS SUPPLEMENT

Rules and Regulations - Rules for Designation of Procurement Class - XX Revised Page No 29 Reflects new Procurement Class 34 HourlyJor_the_Larg ~ ~Oll~r_flI_aQ_d_lfd_J~ri_aLq~s fgr_llt_a~s_g_re__11_lt_tla_1 _1 ~O_KY___ _ Deleted fn pursuant to the Order at Oocke~No P-2014-2409362

Deleted

Gener ation Supply Adjustment for Procurement Classes and 2bullLoads Up to100 KW - XX Revised Page No 32 amp _ Deleted L XX Revised Page No 33____________________________________________________ --c

Deleted 1Reflectsehmination of GSA 3pursuant to the Order at Docket No P-2014-2409362 ~ Deleted ~

Generatjon Supply Adiustment for Procurement Clase 34 Loads Greater than100 KW -XX Revised Page No 34 _ _ j Deleted 111Reflects monthly adjustment for the new Procurem ent Class 34H~rY p~cing P_~ U _oJh_e _O_d_ t_al Qlt_C~ej ~~ iQ1~-- ~ 1 1

2409362 I I Deleted 1al

Deleted quarterlyReconciliation - XX Revised Page No 35 and XX Revised Page No 36 11

Reflects updated reconciliation and recovery provIsIons for GSA 1 2 and the new 34 Hourlybull _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ bull Deleted adjustment tor Procurement Classes 1 and 2and3

I

Deleted 2014

I Deleted i Deleted ll

Deleted -I

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- - - - - _J 1 Deleted 11

lssuedlvlarEtgt_ ~J~ _ _ _ _________ _ _________ __ _________ _ ______ _ EtlectiveJllls 1 20 _ _j

Deleted January

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Deleted March 1

Deleted 6- _______________

PECO Exhibit ABC-3

Suppa1119nl Nolt o _ _ _J Tariff Electric Pa PUC No

1ltxx_Abull~~ Pbullve-~o_5 2_ _I 1

Deleted 2

Deleted SecondPECO Energy Company SupedeaXXX AeviMd Pago No 2 j Deleted fit

TABLEOf CONTffltS List of CommLllitios Served 4

Dofinttion of Terms and El(planation of Abbrevations 6789 RULES AND REGULATIONS

How to Use loose-Leaf Tariff 5

1 The Tarill 10 2 Service Umlauons 10 3 Customers Installation 11 4 Application for Servico 12 5 Credi 13 6 PrivatemiddotProperty Construction 14 15 7 Exensions 1617 8 RightsofWay 18 9 lnlroduclion of Service 19 10 Company Equlpmenl 19 11 Tariff and Conlrad OpUons 20 12 Service Continuily 21 13 Cuolomers Use of Service 22 14 Metaring 22 15 Demand Determination 23 16 MotorTests 24 17 BIiiing and Standard Paymenl Options 25 18 Payment Terms amp Tormnatlon of Service 26 27 19 Unfulfilled Conlrac1s 28 20 Cancellation by Customer 28 21 General 29 22 Rules For Desiilation of Procurement Class 29 23 EGS Switching 30 24 Load Dal a Eiichange 30

RATES

RIDERS

STATE TAX ADJUSTMENT CLAUSE 31 GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 1lfQ2 ~ 0 ~ -~_3t ______ ~ -GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 ~ ______ ~ middot RECONCILIATION 35 36 NUCLEAR DECOMMISSIONING COST ADJUSTMENT CLAUSE (NDCA)37 PROVISIONS FOR RECOVERY OF UNIVERSAL SERVICE FUND CHARGE (USFC) 38 PROVISION FOR THE RECOVERY OF CONSUMER EDUCATION PLAN COSTS 39 TRANSMISSION SERVICE CHARGE 40 NONmiddotBYPASSABLE TRANSMISSION CHARGE (NBT) 41 SMART METER COST RECOVERY SURCHARGE 42 PROVISION FOR THE TAX ACCOUNTING REPAIR CREDIT TARC) 43 PROVISION FOR THE RECOVERY OF ENERGY EFFICIENCY AND CONSERVATION PROGRAM COSTS PHASE 11 44 DISTRIBUTION SYSTEM IMPROVEMENT CHARGE (DSICJ 45 46 47

Rate R Residence Service 48 Rate RmiddotH Resldenlial Heatmiddotng SeMce 49 Raio RS-2 Ne Metering 50 51 52 Rate GS General Service 53 54 Rate PD PnmarymiddotDlsllibu~on Power 55 Rale HT HighbullTension Powar56 Rate EP Eledric Propulsion 57 Rate POL Private Outdoor Ughting 58 59 Rate Sl middotS Street Ligh~ngSuburban Counties 60 61 Rate SLmiddotE Slreet l ighting Customer-Owned Facilities 62 63 Rate TLCL Traffic lighting Constant l oad Sarvlce 64 Rate BLI Borderline lnt8llhange Servioe 65 Aale AL Alley Lighting in City of Phlladelpha66

Applicab~ity Index of Riders 67 Capacity Reservation Rider 68 69 70 CAP Rider middot Customer Assistance Program 711

721

Casualty Ridar 73 CommerciaJnndustrial Direct Load Conlrol Program Rider 74 75 Construcuon Rider 76

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Deleted Januery

lssuedM~rpoundh _ _i oJ~ __ _____ _ ______ _ _____ _ ___ _ _ __ ____ __ _ ____ ___ 5fapound11~a_lne 1 gag _ _J

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PECO Exhibit ABC-3

Supplement No X to Tariff Electric Pa PUC No 5

I XX Revised Page No 29

PECO Energy ColJJPflnY euporaodes X Pgge No 2e _

RULES AND REGULATIONS (contjnuedl

21 GENERAL 211 OFFICE OF THE COMPANY Wherever in this Tariff it is provided that notice be given or sent to the Company or the office ol the

Company such notice delivered or mailed postage prepaid to any commercial office shall be deemed sullicient unless the Pnncipal Ollice of the Company at 2301 Market Street Philadelphia is expressly mentioned

212 NO PREJUDICE OF RIGHTS The failure by the Company to enforce any ol the terms ol this Tanll shall not be deemed a waiver of its right to do so

213 GRATUITIES TO EMPLOYEES The Companys employees are stnctly forbidden to demand or accept any personal compensation or gilts tor service rendered by them while working for the Company on the Companys time

214 BILLING CHANGES Where billing changes are made as the result of an investigation made at custome~s request or by routine Inspection the change ol billing may be applied to the bill tor the regular meter reading period preceding such investigation and will in any event apply to the bill tor the period during which the investigation is made

215 EXCEPTIONAL CASES The usual supply ol electric service shall be subject to the provisions ol this Tanff but where special service-supply conditions or problems arise tor which provsion is not otherwise made the Company may modify or adapt its supply terms to meet the peculiar requirements ol such case provided that such modified terms are a rational expansion ol standard tanll provisions

216 ASSIGNMENT Subject to the Rules and Regulations all contracts made by the Company shall be binding upon and oblige and inure to the benefit of the successors and assigns heirs executors and administrators ol the parties thereto

217 OTHER CHARGES The Company may ii feasible provide and charge tor services other than those provided for in this Tarill when requested by the customer The Company is not obligated to provide such services The Company will if possible give the customer an advance written estmate of the costs to provide the service Costs shall include but not be limited to materials supplies labor transportation and overhead

218 TAX INDEMNIFICATION If PECO Energy becomes liable under Section 2806(g) or 2809( c) of the Public Ublity Code 66 CS sectsect 2806(g) and 2809(c) for Pennsylvania state taxes not paid by an Electnc Generation Supplier (EGS) the non-compliant EGS shall indemnity PECO Energy for the amount ol additional state tax liability imposed upon PECO Energy by the Pennsylvania Department ol Revenue due to the failure of the EGS to pay or remit to the Commonwealth the tax imposed on its gross receipts under Section 1101 of the Tax Reform Code of 1971 or Chapter 28 ol Title 66

22 RULES FOR DESIGNATION OF PROCUREMENT CLASS

221 DESIGNATION OF PROCUREMENT CLASS

a) Annually in November the Company shall nohly the customer of their procurement group class designation which shall be ellective the following June 1

b) The procurement class designation shall be used to determine the appropriate Generation Supply Adjustment to apply to the customer

c) For non-residential customers the procurement class shall be determined based upon the customers peak measured demand In

( Deleted 2tisJnll

the pnor June-May period d) There shall beJhree procurement class designations They are (C)

1) Res1dentjal 2) Small Commercial and lndustrialiJP lo and indudiQg1 00 kW ___________ _ _ _ _ _ _ _ _ _ _ ________ 3) L-_aige CornmerciaLand lndustrialgr~atertJa109~~ - ___ _ __________________________

e) Procurement class designation shall only change once per year on the date established in rule 221 a I) New customers procurement class shall be based upon an engineering estimate of their diversified peak demand for a new facility

or an existing facility with a substantially dillerent use g) A new customer in an existing fac1hty shall be assigned to the same procurement class as the last customer In that

facility unless rule 221 f applies

J - Deleted lour

I__ 1- ~ 11 I

I I

I

Deleted 0

Deleted -

Deleted Medium

Deleted 101-500

Deleted 11

Deleted 4)

Deleted Large Commercial and Industrial over SOO kW

I (C) Denotes Change I JI

1 lssuedlAarch 1Z 2Q_ _____________________________________________EbulltIB_lnj Q[ ~ -

Deleted December 18

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---

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PECO Exhibit ABC-3

Supplement No)( to _J Deleted 2 Tariff Electric Pa PUC No 5

XXX Revieed Page No 32 _J PECO Energy Company SupieiieaXXXPage No32 J

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASSES 1 md 2 ~~ LOADS UP TO 100KW

Applicability June 1 20 lig dju~ le_rll~ l_a~~ppJy_t_ aj_l poundU~l~ e a~igfef~ II seryipounde 1r~ltgt_e_Cg ~ Y ~Ih~ ~ ~ds ~p _lo__ _ ~ ~ JOQ ~yen- T)e_rate_contaj_n11d_herein siaJI be calculated to the_neare_t etOr dlh_of_a_ce_nt Jhe GSA shall contin the cost of generallon supply for each tanlf rate 1

I

Pricing The rates below shall include the cost of procuring power to serve the defaull service customers including lhe cost of complying with the Allernative Energy Portfolio Standards Act (AEPS or the Act) plus associated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The pricing for default service will represent the estimate of the cost i 1

Ito serve the specific tariff rate for the next quarterly penod beginning with the three months ended August 31 20 __he rate_intll_s_tarilf _ t bull 7

111shall be updated quarterly on June 1 September 1 December 1 and March 1 commencing June 1 20 If the balance of over(under) 1

e~~l~l=~ ~~n~~middot f~~~~r~~u~~ file a reconciliation that will mitigate the subsequent impact The gene at1on service cha-rge sha lf 1 1I I

II

GSA(n) =(C-E+A)S1(1middotT) (1middotALL)(1middotLL) +AEPS51(1 bull T) + WC where

I 1

C= The sum of the amounts paid to the full requirements suppliers providing the power lor the quarterly penod the spot market purchases 11 for the quarterly period plus the cost of any other energy acquired for the quarterly period Cost shall include energy capacity and ancillary services dstribution line losses cost of complying with the Alternative Energy Portfolio Standards and any other load serving ent~y charges other than network transmissaon service and costs assigned under the Regional transmssion Expansion Plan Ancillary services shall indude any allocation by PJM to PECO defaull service associated with the failure of a PJM member to pay its bill from PJM as well as the load serving entity charges listed in the Supply Master Agreement Exhibit Das the responsibility of the supplier This component shall indude the proceeds and costs from the exercise of Aucti on Revenue Rights granted to PECO by PJM AEPS =The projected total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not included in the C component above for the quarterly penod for each procurement class Costs include the amount paid for Alternative Energy andor Alternative Energy Credits (AECs) purchased for compliance with the Act the cost of adrrinistering and conducting any procurement of Alternative Energy andor AECs payments to the AEC program administrator for its costs of admnistering an altemabve energy credits program payments to a third party for its costs In operating an AEC registry any charge levied by PECOs regional transmss1on operator to ensure that allernative energy sources are reliable a credit for the sale of any AECs sold during the calculation period and the cost of Alternative Compliance Payments that are deemed recoverable by the Commss1on plus any other direct or indirect cost of acquiring Alternative Energy andor AECs and complying with the AEPS statute

E = Experienced over or under-collection calculated under the reconcihation provision of the tariff to be effective semannually with recovery during the penods March 1 through August 31 of the current year and September 1 of the current year through February 28 (29) of the followin ~~ L _____________________________________________________________ ~

A = Administrative Cost - This indudes the cost of the Independent Evaluator consultants prov1d1ng guidance on the development of the procurement plan legal fees incurred gaining approval of the plan and any other costs associated with designing and implementing a procurement plan including the cost of the pncing forecast necessary for estimating cost recoverable under this tanll Also included in this component shall be the cost to implement real time priong or other time sensitive priong such as dynarric pno ng that is required of the Company or is approved in its Act 129 ftling Administrative Costs also includes any other cos s Incurred to implement retad market enhancements directed by the Commission in its Retail Market Investigation at Docket No t-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

S = Estimated sales for the penod the rate is In effect for the classes to which the rate 1s applicable Six month sales are used for the E

~~~ ~l~~~~~~r~ri~~ ~~~ ~ th~g ug~ ~3~ f ~h ~u e t a~ a~ ~e t~~ 1 f ~h ~u~re ~ a~t r u~~ Febru ry 8_( 9~ _ JlCl

T =The currently effective gross receipts tax rate

n = The procurement class for which the GSA is being calculated

ALL = Average line losses for the procurement class

LL = Line losses for the specific rate dass provided in the Companys Electnc Generation Supplier Coordlnabon Tanff rule 66

WC = $000034kWh to represent the cash working capital for power purchases

Auction Revenue Rights (ARR) =Allocated annually by PJM to Frm transm sson customers the ARR s allow a Company to select nghts to specific transmission paths in order to av01d congestion charges In general the lrne loss adJustmont is applicable to Procurement Class 2 and 3 only as those classes contain rate classes with three different line loss factors Current Charges

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Deleted As descri bed in the recone1 llat on provision of the tanll the initial reconciliation period including the month of December 2014 will be11 recovered during the penod June 1 201 5 through August 31 201S The initial six month reconci liati on period will include January 1 201 S through June 30 201 5 and the initial six month elfect1ve sales recovery penod will be September 1 2015 through February 29 2016

Deleted )11

Deleted

Deleted T he initial E factor sales period wi ll be June 1 201 5 through August 31 201 5 The inibal six month effective E factor sales penod wi ll be September 1 201 5 through February 29 201 6

Deleted

Deleted ltobjectgt

Rate GSA Price

R GSA(1) $)( XXXXX

RH GSA(1) $ XXXXXX

GS GSA (2) $ xxxxxx -

Deleted O

Deleted 07383

Deleted 007383

Deleted 007869

Deleted GS Cm Deleted January

Deleted 56

Deleted March

Deleted 6

(C)

== ~==================-=- J~-- - ---------------- - --(C) Denotes Change lssuedAarch 2016 Effearvetune 1 20

--------------------

PECO Exhibit ABC-3

Supplement No1( to_J ( Deleted 2 Tariff Electric Pa PUC No 5

X_() ~e_yi__d_l_ge ~ 33-I PECO Energy Company SupersedeaXXX Page tgtlo 33

GfflERATfQN SUPfLY ADJUSTMENT FOR PROCUREMENT cusses and 2 bull (Cl _J _ LOADS up ro100KW ICONTNUEDl ____________ - - - - - - - - - - _d

PD GSA 2 $ XXXXX HT GSA 2 sxxxxx POL GSA 2 $ XXXXX SL-S GSA 2 $ xxxxx TLCL GSA 2 $ xxxxx SL-E GSA 2 $ xxxxx AL GSA 2 $ XXXXX

j ------------- ------L------------------

(C)L------------------1

------------------ ---- - --middotmiddot

- - - - - - - - - - - - - - - - - - _

------------- ----- I

------------------ lll

_ Prices shall exclude capacityJrom the Procurement Class 2 RFP results _______________________ _ _______ J1111 II I

Procedure For Procurement Classes 1~lt ~ll_e_Gsect~ ~h~ll_11_ f~epoundl ~5_dY ~e~o_e l h 11_lf11_c_i~ poundle ~f _lU11_ 1 ~efltlgtrJ _ __(Cl _ 1j December 1 and March 1 in conjunction with the Reconciliation Schedule __

1

I

bull

Ill

Ill Ill

Deleted First

Deleted Original

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Deleted

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I Deleted

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Deleted 007736 I

Deleted PD Clli

Deleted 007419

Delatad HT Cfjf Delatad 005848

Deleted 005848

Delatad 007869

Delated 005848

Daletad 005848

Deleted a)

Deleted

Deleted and 3

middot1 Dalated

Delatad

(C) Denotes Change

lssuedtkrch V 2016 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Elfecuv-lce 1 20 _ _A

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Deleted 6

PECO Exhibit ABC-3

Supplement No l to Tariff Electric Pa PUC No 5

XXX Revised Pago No 34 lPECO Energy Company SuperaedoeXX Roviaed Pago No 34

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 bull (C -LOADS GREATERTHAN 100KW

Applicebility June 1 201l_ tt1_ls_a_poundfj(s_m_e~ _h_lll_aPPY _o_a_ CJr lk_ng ceta(ll_bull ~C~ fornJ h_ _ltltgt_mp nY ~ t_1 cern~n_poundfs______ ~ greater than100kw _

Hourly Pricing Service Pricing The rates below shall include the cost ol procunng power to serve the delault service customers plus assocated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The rates for the GSA 34 (C~ Hourly Pncmg Addermiddot shall beiJp_d_ld_qLJ_ate_rl~ o_r u1- ~eetnJrJ _D_C_flb_r_1_argt_d_M2 ~h_ 1_Cpoundlm_ergt_cg_ J_Jr_e J _2Q1J _ lf_tl_e___ _ balance of over(under) recovery gets too large due to billing lag the Company can Jle _a r ef o_rc[li llpn_tl_a_lll_m] igae Jh_ ~u_)s_equ~n _ _ _ - -impact The cost for this hourly service rate shall be as follows

Generation Supply Cost (GSC) =(C+R+AS+ACmiddotE)(1-T)+WCA where

[ Deleted 2

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Deleted First

Deleted

Deletedsect

Deleted 5

Deleted 5

Deleted effective the first of each month

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C The PJM day ahead hourly price multiplied by the customers usage in the hour summed up for all hours in the month

IPJMobullX usage (1-LL) PJMobull - PJM on day ahead hourly price Usage - Electricity used by an end use customer R = The PJM reliability pricing model (RPM) charge for month for the customer The RPM charge shall be the customers peak load contribution as established for PJM purposes multiplied by the current RPM monthly charge and the PJM established reserve margin adjustment PLC x (1 + RM) x PAPM x Bill Daye PLC = Peak load contribubon RM = Reserve margin adjustment per PJM PAPM = Capacity price per MW-day AC =Administrative Cost - This Includes an allocation of the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the plan and any other costs associated with designing and rmplementing a procurement plan divided by the total default service sales and then multiplied by the customers usage for the month Admrnistralive Costs also Includes any other costs incurred to implement retail market enhancements directed by the Commission in its Retail Market lnvesbgation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate AS x Uaage

A = Administrative cost S = Default service sales

AS= The cost on a $MWH basis of acqurnng ancillary seMces from PJM and of complying with the Alternative Energy Portfolio Standard multiplied by the customers usage for the month and divided by (1-LL) Congestion charges including the proceeds and costs from the exercise ofAuction Revenue Rrghts shall be included in ths component Ancillary services shall be those included in the Supply Master J Deleted 11Agreement as being the responslb1llty of the supplier

((PJMs x Usage1(1-LL) + AEPSSmsX Usage)

PJM = $MWH charged by PJM for ancillary services AEPS = Cost of complying wlth the alternabve energy portfolio standard s = Sales for which AEPS cost is incurred

If the supplier provides the ancillary services and AEPS cost then the customer shall be charged the suppliers rate for these services times usage and divided by (1-LL)

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges LL = Line loss factor as provided in the Companys Electnc Generation Supplier Coordination Tariff Rule 66 based upon the customers distnbution rate class adjusted to remove losses included in the PJM LMP T =The currently effecbve gross receipts lax rate 1

E - I O(U)S x usage where E = Overunder recovery as calculated in the reconciliabon 1

1

S bull Procurement class314 sales (C) 11 1

WC = $000034 kWh for working capital associated with power purchases 11

WCA = Individual customer sales x WC 11 I

Procedure The E factor shall be updated_el)11annu_ally ~n 2o_rj~n_cl_orgt_ ~t ti ~epoundQ_ri~Ji~tiQn__ ___________________ _(CJ 1 1 1The applicable above items are converted to the rates hsted below 1

II

Deleted lour

Deleted monthly

Deleted Monthly reconciliations shall be recovered over a one month period after the occurrence of a quarter

Deleted 000428

Deleted 00041 9

Deleted 000400

Tariff Ratbull GS PD HT EP Houri Pricin Adderbull dollarskWh $ XXXXX $ XXXXX $ XXXXX $ XXXXX __ ___ rlt

bull Includes admnistratve cost (AC) anallary service charge (AS) E factor (E) and working capital (WC)

~ ) Deno esfi_a_rig_e _______________________________________________________ _l

lampSUed~arch iz 201 6 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _________________E[epound1iyeIJf1 _O_fl --JI

-

Deleted 000400

Deleted (I)

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Deleted Increase

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Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric PA PUC No 5

XXX Revised Page No 35 PECO Energy Company Supe[Jed- XX Page No 35

RECONCILIATION Applicability June 1 2017 this adjustment shall apply to all customers who received default service during the period (C) the cost of which Is betng reconClled Customers taking default service during the reconctltaton period that leave default service prior to the assessment of the collection of the over(under) adjustment shall still pay or receive credit for the over(under) acffU5tment through the rrigration provision The Company shall notify the Commission and parties to the Default Service Settlement 15 days in advance of the quarterlyJiling ii the Migration Provsion wtll 1e inpl_emented In the ding

This adjustment shall be calculated on a semiannual basis for Procurement Classes 1 2 and 34 Hourly The reconciliation penod will (C) Include the six month period beginning January 1and July 1 commencng with theJuly 1 20 throughpecember ~1 20 reconciliation perioqlor poundroc_urelent Cla1111bull s 1 end 2 and the oix_moflll_ penod Ju)lt 1 2Q17 throu91 Qeceber 31 201] or P_rocurement Class ~ Hourl11 There wtll be two mtal Iran bon reconc11ation periods tor Procurement Cla 34 Hourly They are the reconahabon penod ncludmg February 2017 and the reconc11tat1on penod including the lour month penod March 1 2017 through June 30 2017 respectively The recon~ilLalonllhall be seJa~ate or e_lcl pr~)8)t_cl~_A_ny_resullng 2v_er_prul)der_r_ClVY ~IIgta_ss_essed_o_ __ an equal cenls pe~lJl~WjlJh_p_r _a~~ Ip ll_~lg)amp_SJn_the reeyaritPl)CJlle_ll_g_OP~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I

For Procurement Classes 1 and 2 and for Procurement Class 34 Hourly alter the transition period any over(under)1ecovery shall be (CJ 1

collected after the occurrence of two months from the end of the_lt_OQOli~i~n_penpd- f~ the two_intal_ran 11 on relt9riclia_J~n P2dsect (9r_ 1 Procurement Class 34 flo_urjy a]y_oye_r(~1JdfrLr02v_ery hllP~ILelt_tej -Iertle-~_rr_e~e of lhe_nio~tl_s_and _10_Tl2n_hsect _ ___ _ _ respectively_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _

For Procurement Classas 1 2 and 34 Hourly recovery shall be over a six month penod commencing September 1 and March 1 (C)__ The initial six month period sMa_rct) 1 20 throu9h_A_ugust 31 20 lor Procureflnt ClassesJ 2 nd 2 and Y1 rpoundh_1 2Q1_1 _h_ough August 31 2018 for Procurement 34 Hourly For Procurement Class 34 Hourly the two initial trans1t1on recovery penods corresponding to the two in1t1al transition reconcltation penods are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 respectovely For pulJloses of this rider the reconciliation shall be calculated 45 days before the ellecbve date of recovery The over or under recovery shall be calculated using the formula below The calculation of the over(under) recovery shall be done separately ~ for the following procurement classes - Class 1 - Residential Class 2 - Small Campl~e t_o 100 k~ arid Class 31 ha~ g~I grea1er thaI __

1(yen) ~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1a 1 Reconciliation Fonmula 1i1a 1

EN = 20(U) + I 11 1bull 1

Migration Provision EM c (lO(U) + 1]S(1-GRT)(1-ALL)(1middotLL) Al

Where II E =Experienced over or under collection plus associated Interest 11 N = Procurement class II

M = Migration Rider O(U) = The monthly difference between revenue billed to the procurement dass and the cost of supply as described below in Cost AEPS Cost and Administrative Cost

Revenue= Amount billed to the tanfl rates applicable to the procurement dass including approveqReal nrne Price or other time - - - I sens1bve rates for the period betng reconciled through the GSA

Cost = The sum of the amounts paid to all of the full requirements suppliers providing the power for the penod being reconcmiddotledJhe spot Imarket purchases for the period being reconciled plus the cost of any other energy acquired for the penod being reconaled Cost shall include energy capacty and anallary services as well as the proceeds and costs of auction revenue nghts for Procurement Classes 1 anq (C 2 _A_ncj llayseryi~es _hall lndude any allocation by JM to_PECO default selV_ce associated wtth the taiLu _of a poundM_member to pay its _ill from PJM as well as those costs listed m the Supply Master Agreement as the responsibility of the seller

AEPS = The total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not induded in the Cost component above for the reconcllabon period for Procurement Classes and_2 nd_notl ncluded In the ancl_llary se~ces coflli)Onent ~1 for Procurement Class 34 Hourly Service Costs indude the amount paid for Alternabve Energy andor Altemabve Energy Credits (AECs) 1

purchased for compliance lth the Act the cost of adminstenng and conducting any procurement of Alternative Energy andor AEC s paymen9 to the AEC program admm1strator for its costs of admnistenng an alternative energy credits program payments to a third party for ts costs in operating an AEC regshy any charge levied by PECOs regional transmsS1on operator to ensure that altematve energy sources are reliable a credit for the sale of any AECs sold dunng the calailation penod and the cost of Alternative Compliance Payments that are deemed recoverable by the Commission plus any other direct or indirect cost of acquiring Alternative Energy ancVor AECs and complying with the AEPS statute

Admlnialnllive Cost= This Includes the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the strategy and any other costs asaociated lth designing and implementing a procurement plan including the cost ol the pricng forecast necessary for estimating cost recoverable under this tanfl Also included in this component shall be the cost to implement real Ume pnang or other time sensitive priang such as dynamic pricing that is required of the Company or approved n Its Act 129 liling Administrative Costs also includes other costs incurred to Implement retail market enhancements directed by the Commission in its Retrut Market Investigation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

Full Requirements Supply= A product purchased by the Company that 1ndudes a fixed pnce for all energy consumed The only cost added by the Company to the full requirements price is for gross receipts tax distribubon line losses and administrative cost

Ancillary Services= The following services In the PJM OATT- reacbve support frequency control operating reserves supplemental reserves imbalance charges PJM annual charges any PJM assessment associated with non-payment by members and any other load serving entity charges not ltsted here but contained in Exhibit D of the Supply Master Agreement Also included shall be the proceeds and costs from the exercise of aucoon revenue rights for Procurement Class 34 Hourly Servce (C)

(Cl Denotes Change _ _ _ ~ ~

lssuedllrpoundh_1Z ~0_16__ __ _____ ___ ~ == -= ==-__ ___~ -== ==-_____ _-bull-=-_ _E~ef ~eiun 1lt1 _ 4

Deleted QliuilllI Deleted 5

Deleted or monthly

Deleted

Deleted January

Deleted 5

Deleted June

Deleted 0

Deleted 5

Deleted

Deleted The initial reconclltatlon penod lor Procurement Classes 1 2 and 3 wtll include the month of December 201411 lth recovery ocaimng during the three month penod June 1 2015 through August 31 2015 F

Deleted )-

Deleted

Deleted t

Deleted 11 rT41 Deleted II

Deleted II

Deleted

Deleted 1l

Deleted reconrunon

Deleted 11

Deleted 1l CN Deleted with the

Deleted of

Deleted September

Deleted 5

Deleted February 29

Deleted 6

Deleted shall be 11 Cr6f Deleted lt

Deleted Medium

Deleted 1

Deleted I Cm Deleted

Deleted

Deleted

Deleted and 3

Deleted

Deleted and 3

Deleted 11 rTef Deleted December middot-Deleted e Deleted s Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

PECO Exhibit ABC-3

Supplement No~ lo Deleted 2 Tariff Electric Pa PUC No 5

XX Revised Pago No 1 1Deleted SecondPECO Energy Company SuporaedoeXX Revieod Page No 1 Deleted Firat

LIST OF CHANGES MADE BY THIS SUPPLEMENT

Rules and Regulations - Rules for Designation of Procurement Class - XX Revised Page No 29 Reflects new Procurement Class 34 HourlyJor_the_Larg ~ ~Oll~r_flI_aQ_d_lfd_J~ri_aLq~s fgr_llt_a~s_g_re__11_lt_tla_1 _1 ~O_KY___ _ Deleted fn pursuant to the Order at Oocke~No P-2014-2409362

Deleted

Gener ation Supply Adjustment for Procurement Classes and 2bullLoads Up to100 KW - XX Revised Page No 32 amp _ Deleted L XX Revised Page No 33____________________________________________________ --c

Deleted 1Reflectsehmination of GSA 3pursuant to the Order at Docket No P-2014-2409362 ~ Deleted ~

Generatjon Supply Adiustment for Procurement Clase 34 Loads Greater than100 KW -XX Revised Page No 34 _ _ j Deleted 111Reflects monthly adjustment for the new Procurem ent Class 34H~rY p~cing P_~ U _oJh_e _O_d_ t_al Qlt_C~ej ~~ iQ1~-- ~ 1 1

2409362 I I Deleted 1al

Deleted quarterlyReconciliation - XX Revised Page No 35 and XX Revised Page No 36 11

Reflects updated reconciliation and recovery provIsIons for GSA 1 2 and the new 34 Hourlybull _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ bull Deleted adjustment tor Procurement Classes 1 and 2and3

I

Deleted 2014

I Deleted i Deleted ll

Deleted -I

Deleted

Deleted

~--------- ----------------------------------------------- ________J

- - - - - _J 1 Deleted 11

lssuedlvlarEtgt_ ~J~ _ _ _ _________ _ _________ __ _________ _ ______ _ EtlectiveJllls 1 20 _ _j

Deleted January

Deleted 5

Deleted March 1

Deleted 6- _______________

PECO Exhibit ABC-3

Suppa1119nl Nolt o _ _ _J Tariff Electric Pa PUC No

1ltxx_Abull~~ Pbullve-~o_5 2_ _I 1

Deleted 2

Deleted SecondPECO Energy Company SupedeaXXX AeviMd Pago No 2 j Deleted fit

TABLEOf CONTffltS List of CommLllitios Served 4

Dofinttion of Terms and El(planation of Abbrevations 6789 RULES AND REGULATIONS

How to Use loose-Leaf Tariff 5

1 The Tarill 10 2 Service Umlauons 10 3 Customers Installation 11 4 Application for Servico 12 5 Credi 13 6 PrivatemiddotProperty Construction 14 15 7 Exensions 1617 8 RightsofWay 18 9 lnlroduclion of Service 19 10 Company Equlpmenl 19 11 Tariff and Conlrad OpUons 20 12 Service Continuily 21 13 Cuolomers Use of Service 22 14 Metaring 22 15 Demand Determination 23 16 MotorTests 24 17 BIiiing and Standard Paymenl Options 25 18 Payment Terms amp Tormnatlon of Service 26 27 19 Unfulfilled Conlrac1s 28 20 Cancellation by Customer 28 21 General 29 22 Rules For Desiilation of Procurement Class 29 23 EGS Switching 30 24 Load Dal a Eiichange 30

RATES

RIDERS

STATE TAX ADJUSTMENT CLAUSE 31 GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 1lfQ2 ~ 0 ~ -~_3t ______ ~ -GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 ~ ______ ~ middot RECONCILIATION 35 36 NUCLEAR DECOMMISSIONING COST ADJUSTMENT CLAUSE (NDCA)37 PROVISIONS FOR RECOVERY OF UNIVERSAL SERVICE FUND CHARGE (USFC) 38 PROVISION FOR THE RECOVERY OF CONSUMER EDUCATION PLAN COSTS 39 TRANSMISSION SERVICE CHARGE 40 NONmiddotBYPASSABLE TRANSMISSION CHARGE (NBT) 41 SMART METER COST RECOVERY SURCHARGE 42 PROVISION FOR THE TAX ACCOUNTING REPAIR CREDIT TARC) 43 PROVISION FOR THE RECOVERY OF ENERGY EFFICIENCY AND CONSERVATION PROGRAM COSTS PHASE 11 44 DISTRIBUTION SYSTEM IMPROVEMENT CHARGE (DSICJ 45 46 47

Rate R Residence Service 48 Rate RmiddotH Resldenlial Heatmiddotng SeMce 49 Raio RS-2 Ne Metering 50 51 52 Rate GS General Service 53 54 Rate PD PnmarymiddotDlsllibu~on Power 55 Rale HT HighbullTension Powar56 Rate EP Eledric Propulsion 57 Rate POL Private Outdoor Ughting 58 59 Rate Sl middotS Street Ligh~ngSuburban Counties 60 61 Rate SLmiddotE Slreet l ighting Customer-Owned Facilities 62 63 Rate TLCL Traffic lighting Constant l oad Sarvlce 64 Rate BLI Borderline lnt8llhange Servioe 65 Aale AL Alley Lighting in City of Phlladelpha66

Applicab~ity Index of Riders 67 Capacity Reservation Rider 68 69 70 CAP Rider middot Customer Assistance Program 711

721

Casualty Ridar 73 CommerciaJnndustrial Direct Load Conlrol Program Rider 74 75 Construcuon Rider 76

Deleted

Deleted 3

Deleted

Deleted 1

Deleted 2

Deleted Januery

lssuedM~rpoundh _ _i oJ~ __ _____ _ ______ _ _____ _ ___ _ _ __ ____ __ _ ____ ___ 5fapound11~a_lne 1 gag _ _J

Deleted 56

Deleted Maret

Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric Pa PUC No 5

I XX Revised Page No 29

PECO Energy ColJJPflnY euporaodes X Pgge No 2e _

RULES AND REGULATIONS (contjnuedl

21 GENERAL 211 OFFICE OF THE COMPANY Wherever in this Tariff it is provided that notice be given or sent to the Company or the office ol the

Company such notice delivered or mailed postage prepaid to any commercial office shall be deemed sullicient unless the Pnncipal Ollice of the Company at 2301 Market Street Philadelphia is expressly mentioned

212 NO PREJUDICE OF RIGHTS The failure by the Company to enforce any ol the terms ol this Tanll shall not be deemed a waiver of its right to do so

213 GRATUITIES TO EMPLOYEES The Companys employees are stnctly forbidden to demand or accept any personal compensation or gilts tor service rendered by them while working for the Company on the Companys time

214 BILLING CHANGES Where billing changes are made as the result of an investigation made at custome~s request or by routine Inspection the change ol billing may be applied to the bill tor the regular meter reading period preceding such investigation and will in any event apply to the bill tor the period during which the investigation is made

215 EXCEPTIONAL CASES The usual supply ol electric service shall be subject to the provisions ol this Tanff but where special service-supply conditions or problems arise tor which provsion is not otherwise made the Company may modify or adapt its supply terms to meet the peculiar requirements ol such case provided that such modified terms are a rational expansion ol standard tanll provisions

216 ASSIGNMENT Subject to the Rules and Regulations all contracts made by the Company shall be binding upon and oblige and inure to the benefit of the successors and assigns heirs executors and administrators ol the parties thereto

217 OTHER CHARGES The Company may ii feasible provide and charge tor services other than those provided for in this Tarill when requested by the customer The Company is not obligated to provide such services The Company will if possible give the customer an advance written estmate of the costs to provide the service Costs shall include but not be limited to materials supplies labor transportation and overhead

218 TAX INDEMNIFICATION If PECO Energy becomes liable under Section 2806(g) or 2809( c) of the Public Ublity Code 66 CS sectsect 2806(g) and 2809(c) for Pennsylvania state taxes not paid by an Electnc Generation Supplier (EGS) the non-compliant EGS shall indemnity PECO Energy for the amount ol additional state tax liability imposed upon PECO Energy by the Pennsylvania Department ol Revenue due to the failure of the EGS to pay or remit to the Commonwealth the tax imposed on its gross receipts under Section 1101 of the Tax Reform Code of 1971 or Chapter 28 ol Title 66

22 RULES FOR DESIGNATION OF PROCUREMENT CLASS

221 DESIGNATION OF PROCUREMENT CLASS

a) Annually in November the Company shall nohly the customer of their procurement group class designation which shall be ellective the following June 1

b) The procurement class designation shall be used to determine the appropriate Generation Supply Adjustment to apply to the customer

c) For non-residential customers the procurement class shall be determined based upon the customers peak measured demand In

( Deleted 2tisJnll

the pnor June-May period d) There shall beJhree procurement class designations They are (C)

1) Res1dentjal 2) Small Commercial and lndustrialiJP lo and indudiQg1 00 kW ___________ _ _ _ _ _ _ _ _ _ _ ________ 3) L-_aige CornmerciaLand lndustrialgr~atertJa109~~ - ___ _ __________________________

e) Procurement class designation shall only change once per year on the date established in rule 221 a I) New customers procurement class shall be based upon an engineering estimate of their diversified peak demand for a new facility

or an existing facility with a substantially dillerent use g) A new customer in an existing fac1hty shall be assigned to the same procurement class as the last customer In that

facility unless rule 221 f applies

J - Deleted lour

I__ 1- ~ 11 I

I I

I

Deleted 0

Deleted -

Deleted Medium

Deleted 101-500

Deleted 11

Deleted 4)

Deleted Large Commercial and Industrial over SOO kW

I (C) Denotes Change I JI

1 lssuedlAarch 1Z 2Q_ _____________________________________________EbulltIB_lnj Q[ ~ -

Deleted December 18

Deleted 6

Deleted 5

Deleted

Deleted January

Deleted

Deleted 6

---

------------------------

PECO Exhibit ABC-3

Supplement No)( to _J Deleted 2 Tariff Electric Pa PUC No 5

XXX Revieed Page No 32 _J PECO Energy Company SupieiieaXXXPage No32 J

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASSES 1 md 2 ~~ LOADS UP TO 100KW

Applicability June 1 20 lig dju~ le_rll~ l_a~~ppJy_t_ aj_l poundU~l~ e a~igfef~ II seryipounde 1r~ltgt_e_Cg ~ Y ~Ih~ ~ ~ds ~p _lo__ _ ~ ~ JOQ ~yen- T)e_rate_contaj_n11d_herein siaJI be calculated to the_neare_t etOr dlh_of_a_ce_nt Jhe GSA shall contin the cost of generallon supply for each tanlf rate 1

I

Pricing The rates below shall include the cost of procuring power to serve the defaull service customers including lhe cost of complying with the Allernative Energy Portfolio Standards Act (AEPS or the Act) plus associated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The pricing for default service will represent the estimate of the cost i 1

Ito serve the specific tariff rate for the next quarterly penod beginning with the three months ended August 31 20 __he rate_intll_s_tarilf _ t bull 7

111shall be updated quarterly on June 1 September 1 December 1 and March 1 commencing June 1 20 If the balance of over(under) 1

e~~l~l=~ ~~n~~middot f~~~~r~~u~~ file a reconciliation that will mitigate the subsequent impact The gene at1on service cha-rge sha lf 1 1I I

II

GSA(n) =(C-E+A)S1(1middotT) (1middotALL)(1middotLL) +AEPS51(1 bull T) + WC where

I 1

C= The sum of the amounts paid to the full requirements suppliers providing the power lor the quarterly penod the spot market purchases 11 for the quarterly period plus the cost of any other energy acquired for the quarterly period Cost shall include energy capacity and ancillary services dstribution line losses cost of complying with the Alternative Energy Portfolio Standards and any other load serving ent~y charges other than network transmissaon service and costs assigned under the Regional transmssion Expansion Plan Ancillary services shall indude any allocation by PJM to PECO defaull service associated with the failure of a PJM member to pay its bill from PJM as well as the load serving entity charges listed in the Supply Master Agreement Exhibit Das the responsibility of the supplier This component shall indude the proceeds and costs from the exercise of Aucti on Revenue Rights granted to PECO by PJM AEPS =The projected total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not included in the C component above for the quarterly penod for each procurement class Costs include the amount paid for Alternative Energy andor Alternative Energy Credits (AECs) purchased for compliance with the Act the cost of adrrinistering and conducting any procurement of Alternative Energy andor AECs payments to the AEC program administrator for its costs of admnistering an altemabve energy credits program payments to a third party for its costs In operating an AEC registry any charge levied by PECOs regional transmss1on operator to ensure that allernative energy sources are reliable a credit for the sale of any AECs sold during the calculation period and the cost of Alternative Compliance Payments that are deemed recoverable by the Commss1on plus any other direct or indirect cost of acquiring Alternative Energy andor AECs and complying with the AEPS statute

E = Experienced over or under-collection calculated under the reconcihation provision of the tariff to be effective semannually with recovery during the penods March 1 through August 31 of the current year and September 1 of the current year through February 28 (29) of the followin ~~ L _____________________________________________________________ ~

A = Administrative Cost - This indudes the cost of the Independent Evaluator consultants prov1d1ng guidance on the development of the procurement plan legal fees incurred gaining approval of the plan and any other costs associated with designing and implementing a procurement plan including the cost of the pncing forecast necessary for estimating cost recoverable under this tanll Also included in this component shall be the cost to implement real time priong or other time sensitive priong such as dynarric pno ng that is required of the Company or is approved in its Act 129 ftling Administrative Costs also includes any other cos s Incurred to implement retad market enhancements directed by the Commission in its Retail Market Investigation at Docket No t-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

S = Estimated sales for the penod the rate is In effect for the classes to which the rate 1s applicable Six month sales are used for the E

~~~ ~l~~~~~~r~ri~~ ~~~ ~ th~g ug~ ~3~ f ~h ~u e t a~ a~ ~e t~~ 1 f ~h ~u~re ~ a~t r u~~ Febru ry 8_( 9~ _ JlCl

T =The currently effective gross receipts tax rate

n = The procurement class for which the GSA is being calculated

ALL = Average line losses for the procurement class

LL = Line losses for the specific rate dass provided in the Companys Electnc Generation Supplier Coordlnabon Tanff rule 66

WC = $000034kWh to represent the cash working capital for power purchases

Auction Revenue Rights (ARR) =Allocated annually by PJM to Frm transm sson customers the ARR s allow a Company to select nghts to specific transmission paths in order to av01d congestion charges In general the lrne loss adJustmont is applicable to Procurement Class 2 and 3 only as those classes contain rate classes with three different line loss factors Current Charges

Deleted Fit

Deleted

Deleted Origirwl

Deleted

Deletect M

Deleted

Deleted

Deleted

Deleted d

Ddeted i Deleted s Deleted

Deleted S

Deleted

Deleted 5

Deleted

Deleted s Deleted

Deleted As descri bed in the recone1 llat on provision of the tanll the initial reconciliation period including the month of December 2014 will be11 recovered during the penod June 1 201 5 through August 31 201S The initial six month reconci liati on period will include January 1 201 S through June 30 201 5 and the initial six month elfect1ve sales recovery penod will be September 1 2015 through February 29 2016

Deleted )11

Deleted

Deleted T he initial E factor sales period wi ll be June 1 201 5 through August 31 201 5 The inibal six month effective E factor sales penod wi ll be September 1 201 5 through February 29 201 6

Deleted

Deleted ltobjectgt

Rate GSA Price

R GSA(1) $)( XXXXX

RH GSA(1) $ XXXXXX

GS GSA (2) $ xxxxxx -

Deleted O

Deleted 07383

Deleted 007383

Deleted 007869

Deleted GS Cm Deleted January

Deleted 56

Deleted March

Deleted 6

(C)

== ~==================-=- J~-- - ---------------- - --(C) Denotes Change lssuedAarch 2016 Effearvetune 1 20

--------------------

PECO Exhibit ABC-3

Supplement No1( to_J ( Deleted 2 Tariff Electric Pa PUC No 5

X_() ~e_yi__d_l_ge ~ 33-I PECO Energy Company SupersedeaXXX Page tgtlo 33

GfflERATfQN SUPfLY ADJUSTMENT FOR PROCUREMENT cusses and 2 bull (Cl _J _ LOADS up ro100KW ICONTNUEDl ____________ - - - - - - - - - - _d

PD GSA 2 $ XXXXX HT GSA 2 sxxxxx POL GSA 2 $ XXXXX SL-S GSA 2 $ xxxxx TLCL GSA 2 $ xxxxx SL-E GSA 2 $ xxxxx AL GSA 2 $ XXXXX

j ------------- ------L------------------

(C)L------------------1

------------------ ---- - --middotmiddot

- - - - - - - - - - - - - - - - - - _

------------- ----- I

------------------ lll

_ Prices shall exclude capacityJrom the Procurement Class 2 RFP results _______________________ _ _______ J1111 II I

Procedure For Procurement Classes 1~lt ~ll_e_Gsect~ ~h~ll_11_ f~epoundl ~5_dY ~e~o_e l h 11_lf11_c_i~ poundle ~f _lU11_ 1 ~efltlgtrJ _ __(Cl _ 1j December 1 and March 1 in conjunction with the Reconciliation Schedule __

1

I

bull

Ill

Ill Ill

Deleted First

Deleted Original

Deleted

Deleted

Deleted

Deleted

I Deleted

Deleted 3

Deleted sect

Deleted 007736 I

Deleted PD Clli

Deleted 007419

Delatad HT Cfjf Delatad 005848

Deleted 005848

Delatad 007869

Delated 005848

Daletad 005848

Deleted a)

Deleted

Deleted and 3

middot1 Dalated

Delatad

(C) Denotes Change

lssuedtkrch V 2016 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Elfecuv-lce 1 20 _ _A

Deleted January

Deleted 5

Deleted 6

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No l to Tariff Electric Pa PUC No 5

XXX Revised Pago No 34 lPECO Energy Company SuperaedoeXX Roviaed Pago No 34

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 bull (C -LOADS GREATERTHAN 100KW

Applicebility June 1 201l_ tt1_ls_a_poundfj(s_m_e~ _h_lll_aPPY _o_a_ CJr lk_ng ceta(ll_bull ~C~ fornJ h_ _ltltgt_mp nY ~ t_1 cern~n_poundfs______ ~ greater than100kw _

Hourly Pricing Service Pricing The rates below shall include the cost ol procunng power to serve the delault service customers plus assocated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The rates for the GSA 34 (C~ Hourly Pncmg Addermiddot shall beiJp_d_ld_qLJ_ate_rl~ o_r u1- ~eetnJrJ _D_C_flb_r_1_argt_d_M2 ~h_ 1_Cpoundlm_ergt_cg_ J_Jr_e J _2Q1J _ lf_tl_e___ _ balance of over(under) recovery gets too large due to billing lag the Company can Jle _a r ef o_rc[li llpn_tl_a_lll_m] igae Jh_ ~u_)s_equ~n _ _ _ - -impact The cost for this hourly service rate shall be as follows

Generation Supply Cost (GSC) =(C+R+AS+ACmiddotE)(1-T)+WCA where

[ Deleted 2

Deleted Second

Deleted

Deleted First

Deleted

Deletedsect

Deleted 5

Deleted 5

Deleted effective the first of each month

Deleted i

C The PJM day ahead hourly price multiplied by the customers usage in the hour summed up for all hours in the month

IPJMobullX usage (1-LL) PJMobull - PJM on day ahead hourly price Usage - Electricity used by an end use customer R = The PJM reliability pricing model (RPM) charge for month for the customer The RPM charge shall be the customers peak load contribution as established for PJM purposes multiplied by the current RPM monthly charge and the PJM established reserve margin adjustment PLC x (1 + RM) x PAPM x Bill Daye PLC = Peak load contribubon RM = Reserve margin adjustment per PJM PAPM = Capacity price per MW-day AC =Administrative Cost - This Includes an allocation of the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the plan and any other costs associated with designing and rmplementing a procurement plan divided by the total default service sales and then multiplied by the customers usage for the month Admrnistralive Costs also Includes any other costs incurred to implement retail market enhancements directed by the Commission in its Retail Market lnvesbgation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate AS x Uaage

A = Administrative cost S = Default service sales

AS= The cost on a $MWH basis of acqurnng ancillary seMces from PJM and of complying with the Alternative Energy Portfolio Standard multiplied by the customers usage for the month and divided by (1-LL) Congestion charges including the proceeds and costs from the exercise ofAuction Revenue Rrghts shall be included in ths component Ancillary services shall be those included in the Supply Master J Deleted 11Agreement as being the responslb1llty of the supplier

((PJMs x Usage1(1-LL) + AEPSSmsX Usage)

PJM = $MWH charged by PJM for ancillary services AEPS = Cost of complying wlth the alternabve energy portfolio standard s = Sales for which AEPS cost is incurred

If the supplier provides the ancillary services and AEPS cost then the customer shall be charged the suppliers rate for these services times usage and divided by (1-LL)

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges LL = Line loss factor as provided in the Companys Electnc Generation Supplier Coordination Tariff Rule 66 based upon the customers distnbution rate class adjusted to remove losses included in the PJM LMP T =The currently effecbve gross receipts lax rate 1

E - I O(U)S x usage where E = Overunder recovery as calculated in the reconciliabon 1

1

S bull Procurement class314 sales (C) 11 1

WC = $000034 kWh for working capital associated with power purchases 11

WCA = Individual customer sales x WC 11 I

Procedure The E factor shall be updated_el)11annu_ally ~n 2o_rj~n_cl_orgt_ ~t ti ~epoundQ_ri~Ji~tiQn__ ___________________ _(CJ 1 1 1The applicable above items are converted to the rates hsted below 1

II

Deleted lour

Deleted monthly

Deleted Monthly reconciliations shall be recovered over a one month period after the occurrence of a quarter

Deleted 000428

Deleted 00041 9

Deleted 000400

Tariff Ratbull GS PD HT EP Houri Pricin Adderbull dollarskWh $ XXXXX $ XXXXX $ XXXXX $ XXXXX __ ___ rlt

bull Includes admnistratve cost (AC) anallary service charge (AS) E factor (E) and working capital (WC)

~ ) Deno esfi_a_rig_e _______________________________________________________ _l

lampSUed~arch iz 201 6 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _________________E[epound1iyeIJf1 _O_fl --JI

-

Deleted 000400

Deleted (I)

Deleted I

Deleted Increase

Deleted January

Deleted 5

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric PA PUC No 5

XXX Revised Page No 35 PECO Energy Company Supe[Jed- XX Page No 35

RECONCILIATION Applicability June 1 2017 this adjustment shall apply to all customers who received default service during the period (C) the cost of which Is betng reconClled Customers taking default service during the reconctltaton period that leave default service prior to the assessment of the collection of the over(under) adjustment shall still pay or receive credit for the over(under) acffU5tment through the rrigration provision The Company shall notify the Commission and parties to the Default Service Settlement 15 days in advance of the quarterlyJiling ii the Migration Provsion wtll 1e inpl_emented In the ding

This adjustment shall be calculated on a semiannual basis for Procurement Classes 1 2 and 34 Hourly The reconciliation penod will (C) Include the six month period beginning January 1and July 1 commencng with theJuly 1 20 throughpecember ~1 20 reconciliation perioqlor poundroc_urelent Cla1111bull s 1 end 2 and the oix_moflll_ penod Ju)lt 1 2Q17 throu91 Qeceber 31 201] or P_rocurement Class ~ Hourl11 There wtll be two mtal Iran bon reconc11ation periods tor Procurement Cla 34 Hourly They are the reconahabon penod ncludmg February 2017 and the reconc11tat1on penod including the lour month penod March 1 2017 through June 30 2017 respectively The recon~ilLalonllhall be seJa~ate or e_lcl pr~)8)t_cl~_A_ny_resullng 2v_er_prul)der_r_ClVY ~IIgta_ss_essed_o_ __ an equal cenls pe~lJl~WjlJh_p_r _a~~ Ip ll_~lg)amp_SJn_the reeyaritPl)CJlle_ll_g_OP~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I

For Procurement Classes 1 and 2 and for Procurement Class 34 Hourly alter the transition period any over(under)1ecovery shall be (CJ 1

collected after the occurrence of two months from the end of the_lt_OQOli~i~n_penpd- f~ the two_intal_ran 11 on relt9riclia_J~n P2dsect (9r_ 1 Procurement Class 34 flo_urjy a]y_oye_r(~1JdfrLr02v_ery hllP~ILelt_tej -Iertle-~_rr_e~e of lhe_nio~tl_s_and _10_Tl2n_hsect _ ___ _ _ respectively_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _

For Procurement Classas 1 2 and 34 Hourly recovery shall be over a six month penod commencing September 1 and March 1 (C)__ The initial six month period sMa_rct) 1 20 throu9h_A_ugust 31 20 lor Procureflnt ClassesJ 2 nd 2 and Y1 rpoundh_1 2Q1_1 _h_ough August 31 2018 for Procurement 34 Hourly For Procurement Class 34 Hourly the two initial trans1t1on recovery penods corresponding to the two in1t1al transition reconcltation penods are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 respectovely For pulJloses of this rider the reconciliation shall be calculated 45 days before the ellecbve date of recovery The over or under recovery shall be calculated using the formula below The calculation of the over(under) recovery shall be done separately ~ for the following procurement classes - Class 1 - Residential Class 2 - Small Campl~e t_o 100 k~ arid Class 31 ha~ g~I grea1er thaI __

1(yen) ~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1a 1 Reconciliation Fonmula 1i1a 1

EN = 20(U) + I 11 1bull 1

Migration Provision EM c (lO(U) + 1]S(1-GRT)(1-ALL)(1middotLL) Al

Where II E =Experienced over or under collection plus associated Interest 11 N = Procurement class II

M = Migration Rider O(U) = The monthly difference between revenue billed to the procurement dass and the cost of supply as described below in Cost AEPS Cost and Administrative Cost

Revenue= Amount billed to the tanfl rates applicable to the procurement dass including approveqReal nrne Price or other time - - - I sens1bve rates for the period betng reconciled through the GSA

Cost = The sum of the amounts paid to all of the full requirements suppliers providing the power for the penod being reconcmiddotledJhe spot Imarket purchases for the period being reconciled plus the cost of any other energy acquired for the penod being reconaled Cost shall include energy capacty and anallary services as well as the proceeds and costs of auction revenue nghts for Procurement Classes 1 anq (C 2 _A_ncj llayseryi~es _hall lndude any allocation by JM to_PECO default selV_ce associated wtth the taiLu _of a poundM_member to pay its _ill from PJM as well as those costs listed m the Supply Master Agreement as the responsibility of the seller

AEPS = The total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not induded in the Cost component above for the reconcllabon period for Procurement Classes and_2 nd_notl ncluded In the ancl_llary se~ces coflli)Onent ~1 for Procurement Class 34 Hourly Service Costs indude the amount paid for Alternabve Energy andor Altemabve Energy Credits (AECs) 1

purchased for compliance lth the Act the cost of adminstenng and conducting any procurement of Alternative Energy andor AEC s paymen9 to the AEC program admm1strator for its costs of admnistenng an alternative energy credits program payments to a third party for ts costs in operating an AEC regshy any charge levied by PECOs regional transmsS1on operator to ensure that altematve energy sources are reliable a credit for the sale of any AECs sold dunng the calailation penod and the cost of Alternative Compliance Payments that are deemed recoverable by the Commission plus any other direct or indirect cost of acquiring Alternative Energy ancVor AECs and complying with the AEPS statute

Admlnialnllive Cost= This Includes the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the strategy and any other costs asaociated lth designing and implementing a procurement plan including the cost ol the pricng forecast necessary for estimating cost recoverable under this tanfl Also included in this component shall be the cost to implement real Ume pnang or other time sensitive priang such as dynamic pricing that is required of the Company or approved n Its Act 129 liling Administrative Costs also includes other costs incurred to Implement retail market enhancements directed by the Commission in its Retrut Market Investigation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

Full Requirements Supply= A product purchased by the Company that 1ndudes a fixed pnce for all energy consumed The only cost added by the Company to the full requirements price is for gross receipts tax distribubon line losses and administrative cost

Ancillary Services= The following services In the PJM OATT- reacbve support frequency control operating reserves supplemental reserves imbalance charges PJM annual charges any PJM assessment associated with non-payment by members and any other load serving entity charges not ltsted here but contained in Exhibit D of the Supply Master Agreement Also included shall be the proceeds and costs from the exercise of aucoon revenue rights for Procurement Class 34 Hourly Servce (C)

(Cl Denotes Change _ _ _ ~ ~

lssuedllrpoundh_1Z ~0_16__ __ _____ ___ ~ == -= ==-__ ___~ -== ==-_____ _-bull-=-_ _E~ef ~eiun 1lt1 _ 4

Deleted QliuilllI Deleted 5

Deleted or monthly

Deleted

Deleted January

Deleted 5

Deleted June

Deleted 0

Deleted 5

Deleted

Deleted The initial reconclltatlon penod lor Procurement Classes 1 2 and 3 wtll include the month of December 201411 lth recovery ocaimng during the three month penod June 1 2015 through August 31 2015 F

Deleted )-

Deleted

Deleted t

Deleted 11 rT41 Deleted II

Deleted II

Deleted

Deleted 1l

Deleted reconrunon

Deleted 11

Deleted 1l CN Deleted with the

Deleted of

Deleted September

Deleted 5

Deleted February 29

Deleted 6

Deleted shall be 11 Cr6f Deleted lt

Deleted Medium

Deleted 1

Deleted I Cm Deleted

Deleted

Deleted

Deleted and 3

Deleted

Deleted and 3

Deleted 11 rTef Deleted December middot-Deleted e Deleted s Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

PECO Exhibit ABC-3

Suppa1119nl Nolt o _ _ _J Tariff Electric Pa PUC No

1ltxx_Abull~~ Pbullve-~o_5 2_ _I 1

Deleted 2

Deleted SecondPECO Energy Company SupedeaXXX AeviMd Pago No 2 j Deleted fit

TABLEOf CONTffltS List of CommLllitios Served 4

Dofinttion of Terms and El(planation of Abbrevations 6789 RULES AND REGULATIONS

How to Use loose-Leaf Tariff 5

1 The Tarill 10 2 Service Umlauons 10 3 Customers Installation 11 4 Application for Servico 12 5 Credi 13 6 PrivatemiddotProperty Construction 14 15 7 Exensions 1617 8 RightsofWay 18 9 lnlroduclion of Service 19 10 Company Equlpmenl 19 11 Tariff and Conlrad OpUons 20 12 Service Continuily 21 13 Cuolomers Use of Service 22 14 Metaring 22 15 Demand Determination 23 16 MotorTests 24 17 BIiiing and Standard Paymenl Options 25 18 Payment Terms amp Tormnatlon of Service 26 27 19 Unfulfilled Conlrac1s 28 20 Cancellation by Customer 28 21 General 29 22 Rules For Desiilation of Procurement Class 29 23 EGS Switching 30 24 Load Dal a Eiichange 30

RATES

RIDERS

STATE TAX ADJUSTMENT CLAUSE 31 GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 1lfQ2 ~ 0 ~ -~_3t ______ ~ -GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 ~ ______ ~ middot RECONCILIATION 35 36 NUCLEAR DECOMMISSIONING COST ADJUSTMENT CLAUSE (NDCA)37 PROVISIONS FOR RECOVERY OF UNIVERSAL SERVICE FUND CHARGE (USFC) 38 PROVISION FOR THE RECOVERY OF CONSUMER EDUCATION PLAN COSTS 39 TRANSMISSION SERVICE CHARGE 40 NONmiddotBYPASSABLE TRANSMISSION CHARGE (NBT) 41 SMART METER COST RECOVERY SURCHARGE 42 PROVISION FOR THE TAX ACCOUNTING REPAIR CREDIT TARC) 43 PROVISION FOR THE RECOVERY OF ENERGY EFFICIENCY AND CONSERVATION PROGRAM COSTS PHASE 11 44 DISTRIBUTION SYSTEM IMPROVEMENT CHARGE (DSICJ 45 46 47

Rate R Residence Service 48 Rate RmiddotH Resldenlial Heatmiddotng SeMce 49 Raio RS-2 Ne Metering 50 51 52 Rate GS General Service 53 54 Rate PD PnmarymiddotDlsllibu~on Power 55 Rale HT HighbullTension Powar56 Rate EP Eledric Propulsion 57 Rate POL Private Outdoor Ughting 58 59 Rate Sl middotS Street Ligh~ngSuburban Counties 60 61 Rate SLmiddotE Slreet l ighting Customer-Owned Facilities 62 63 Rate TLCL Traffic lighting Constant l oad Sarvlce 64 Rate BLI Borderline lnt8llhange Servioe 65 Aale AL Alley Lighting in City of Phlladelpha66

Applicab~ity Index of Riders 67 Capacity Reservation Rider 68 69 70 CAP Rider middot Customer Assistance Program 711

721

Casualty Ridar 73 CommerciaJnndustrial Direct Load Conlrol Program Rider 74 75 Construcuon Rider 76

Deleted

Deleted 3

Deleted

Deleted 1

Deleted 2

Deleted Januery

lssuedM~rpoundh _ _i oJ~ __ _____ _ ______ _ _____ _ ___ _ _ __ ____ __ _ ____ ___ 5fapound11~a_lne 1 gag _ _J

Deleted 56

Deleted Maret

Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric Pa PUC No 5

I XX Revised Page No 29

PECO Energy ColJJPflnY euporaodes X Pgge No 2e _

RULES AND REGULATIONS (contjnuedl

21 GENERAL 211 OFFICE OF THE COMPANY Wherever in this Tariff it is provided that notice be given or sent to the Company or the office ol the

Company such notice delivered or mailed postage prepaid to any commercial office shall be deemed sullicient unless the Pnncipal Ollice of the Company at 2301 Market Street Philadelphia is expressly mentioned

212 NO PREJUDICE OF RIGHTS The failure by the Company to enforce any ol the terms ol this Tanll shall not be deemed a waiver of its right to do so

213 GRATUITIES TO EMPLOYEES The Companys employees are stnctly forbidden to demand or accept any personal compensation or gilts tor service rendered by them while working for the Company on the Companys time

214 BILLING CHANGES Where billing changes are made as the result of an investigation made at custome~s request or by routine Inspection the change ol billing may be applied to the bill tor the regular meter reading period preceding such investigation and will in any event apply to the bill tor the period during which the investigation is made

215 EXCEPTIONAL CASES The usual supply ol electric service shall be subject to the provisions ol this Tanff but where special service-supply conditions or problems arise tor which provsion is not otherwise made the Company may modify or adapt its supply terms to meet the peculiar requirements ol such case provided that such modified terms are a rational expansion ol standard tanll provisions

216 ASSIGNMENT Subject to the Rules and Regulations all contracts made by the Company shall be binding upon and oblige and inure to the benefit of the successors and assigns heirs executors and administrators ol the parties thereto

217 OTHER CHARGES The Company may ii feasible provide and charge tor services other than those provided for in this Tarill when requested by the customer The Company is not obligated to provide such services The Company will if possible give the customer an advance written estmate of the costs to provide the service Costs shall include but not be limited to materials supplies labor transportation and overhead

218 TAX INDEMNIFICATION If PECO Energy becomes liable under Section 2806(g) or 2809( c) of the Public Ublity Code 66 CS sectsect 2806(g) and 2809(c) for Pennsylvania state taxes not paid by an Electnc Generation Supplier (EGS) the non-compliant EGS shall indemnity PECO Energy for the amount ol additional state tax liability imposed upon PECO Energy by the Pennsylvania Department ol Revenue due to the failure of the EGS to pay or remit to the Commonwealth the tax imposed on its gross receipts under Section 1101 of the Tax Reform Code of 1971 or Chapter 28 ol Title 66

22 RULES FOR DESIGNATION OF PROCUREMENT CLASS

221 DESIGNATION OF PROCUREMENT CLASS

a) Annually in November the Company shall nohly the customer of their procurement group class designation which shall be ellective the following June 1

b) The procurement class designation shall be used to determine the appropriate Generation Supply Adjustment to apply to the customer

c) For non-residential customers the procurement class shall be determined based upon the customers peak measured demand In

( Deleted 2tisJnll

the pnor June-May period d) There shall beJhree procurement class designations They are (C)

1) Res1dentjal 2) Small Commercial and lndustrialiJP lo and indudiQg1 00 kW ___________ _ _ _ _ _ _ _ _ _ _ ________ 3) L-_aige CornmerciaLand lndustrialgr~atertJa109~~ - ___ _ __________________________

e) Procurement class designation shall only change once per year on the date established in rule 221 a I) New customers procurement class shall be based upon an engineering estimate of their diversified peak demand for a new facility

or an existing facility with a substantially dillerent use g) A new customer in an existing fac1hty shall be assigned to the same procurement class as the last customer In that

facility unless rule 221 f applies

J - Deleted lour

I__ 1- ~ 11 I

I I

I

Deleted 0

Deleted -

Deleted Medium

Deleted 101-500

Deleted 11

Deleted 4)

Deleted Large Commercial and Industrial over SOO kW

I (C) Denotes Change I JI

1 lssuedlAarch 1Z 2Q_ _____________________________________________EbulltIB_lnj Q[ ~ -

Deleted December 18

Deleted 6

Deleted 5

Deleted

Deleted January

Deleted

Deleted 6

---

------------------------

PECO Exhibit ABC-3

Supplement No)( to _J Deleted 2 Tariff Electric Pa PUC No 5

XXX Revieed Page No 32 _J PECO Energy Company SupieiieaXXXPage No32 J

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASSES 1 md 2 ~~ LOADS UP TO 100KW

Applicability June 1 20 lig dju~ le_rll~ l_a~~ppJy_t_ aj_l poundU~l~ e a~igfef~ II seryipounde 1r~ltgt_e_Cg ~ Y ~Ih~ ~ ~ds ~p _lo__ _ ~ ~ JOQ ~yen- T)e_rate_contaj_n11d_herein siaJI be calculated to the_neare_t etOr dlh_of_a_ce_nt Jhe GSA shall contin the cost of generallon supply for each tanlf rate 1

I

Pricing The rates below shall include the cost of procuring power to serve the defaull service customers including lhe cost of complying with the Allernative Energy Portfolio Standards Act (AEPS or the Act) plus associated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The pricing for default service will represent the estimate of the cost i 1

Ito serve the specific tariff rate for the next quarterly penod beginning with the three months ended August 31 20 __he rate_intll_s_tarilf _ t bull 7

111shall be updated quarterly on June 1 September 1 December 1 and March 1 commencing June 1 20 If the balance of over(under) 1

e~~l~l=~ ~~n~~middot f~~~~r~~u~~ file a reconciliation that will mitigate the subsequent impact The gene at1on service cha-rge sha lf 1 1I I

II

GSA(n) =(C-E+A)S1(1middotT) (1middotALL)(1middotLL) +AEPS51(1 bull T) + WC where

I 1

C= The sum of the amounts paid to the full requirements suppliers providing the power lor the quarterly penod the spot market purchases 11 for the quarterly period plus the cost of any other energy acquired for the quarterly period Cost shall include energy capacity and ancillary services dstribution line losses cost of complying with the Alternative Energy Portfolio Standards and any other load serving ent~y charges other than network transmissaon service and costs assigned under the Regional transmssion Expansion Plan Ancillary services shall indude any allocation by PJM to PECO defaull service associated with the failure of a PJM member to pay its bill from PJM as well as the load serving entity charges listed in the Supply Master Agreement Exhibit Das the responsibility of the supplier This component shall indude the proceeds and costs from the exercise of Aucti on Revenue Rights granted to PECO by PJM AEPS =The projected total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not included in the C component above for the quarterly penod for each procurement class Costs include the amount paid for Alternative Energy andor Alternative Energy Credits (AECs) purchased for compliance with the Act the cost of adrrinistering and conducting any procurement of Alternative Energy andor AECs payments to the AEC program administrator for its costs of admnistering an altemabve energy credits program payments to a third party for its costs In operating an AEC registry any charge levied by PECOs regional transmss1on operator to ensure that allernative energy sources are reliable a credit for the sale of any AECs sold during the calculation period and the cost of Alternative Compliance Payments that are deemed recoverable by the Commss1on plus any other direct or indirect cost of acquiring Alternative Energy andor AECs and complying with the AEPS statute

E = Experienced over or under-collection calculated under the reconcihation provision of the tariff to be effective semannually with recovery during the penods March 1 through August 31 of the current year and September 1 of the current year through February 28 (29) of the followin ~~ L _____________________________________________________________ ~

A = Administrative Cost - This indudes the cost of the Independent Evaluator consultants prov1d1ng guidance on the development of the procurement plan legal fees incurred gaining approval of the plan and any other costs associated with designing and implementing a procurement plan including the cost of the pncing forecast necessary for estimating cost recoverable under this tanll Also included in this component shall be the cost to implement real time priong or other time sensitive priong such as dynarric pno ng that is required of the Company or is approved in its Act 129 ftling Administrative Costs also includes any other cos s Incurred to implement retad market enhancements directed by the Commission in its Retail Market Investigation at Docket No t-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

S = Estimated sales for the penod the rate is In effect for the classes to which the rate 1s applicable Six month sales are used for the E

~~~ ~l~~~~~~r~ri~~ ~~~ ~ th~g ug~ ~3~ f ~h ~u e t a~ a~ ~e t~~ 1 f ~h ~u~re ~ a~t r u~~ Febru ry 8_( 9~ _ JlCl

T =The currently effective gross receipts tax rate

n = The procurement class for which the GSA is being calculated

ALL = Average line losses for the procurement class

LL = Line losses for the specific rate dass provided in the Companys Electnc Generation Supplier Coordlnabon Tanff rule 66

WC = $000034kWh to represent the cash working capital for power purchases

Auction Revenue Rights (ARR) =Allocated annually by PJM to Frm transm sson customers the ARR s allow a Company to select nghts to specific transmission paths in order to av01d congestion charges In general the lrne loss adJustmont is applicable to Procurement Class 2 and 3 only as those classes contain rate classes with three different line loss factors Current Charges

Deleted Fit

Deleted

Deleted Origirwl

Deleted

Deletect M

Deleted

Deleted

Deleted

Deleted d

Ddeted i Deleted s Deleted

Deleted S

Deleted

Deleted 5

Deleted

Deleted s Deleted

Deleted As descri bed in the recone1 llat on provision of the tanll the initial reconciliation period including the month of December 2014 will be11 recovered during the penod June 1 201 5 through August 31 201S The initial six month reconci liati on period will include January 1 201 S through June 30 201 5 and the initial six month elfect1ve sales recovery penod will be September 1 2015 through February 29 2016

Deleted )11

Deleted

Deleted T he initial E factor sales period wi ll be June 1 201 5 through August 31 201 5 The inibal six month effective E factor sales penod wi ll be September 1 201 5 through February 29 201 6

Deleted

Deleted ltobjectgt

Rate GSA Price

R GSA(1) $)( XXXXX

RH GSA(1) $ XXXXXX

GS GSA (2) $ xxxxxx -

Deleted O

Deleted 07383

Deleted 007383

Deleted 007869

Deleted GS Cm Deleted January

Deleted 56

Deleted March

Deleted 6

(C)

== ~==================-=- J~-- - ---------------- - --(C) Denotes Change lssuedAarch 2016 Effearvetune 1 20

--------------------

PECO Exhibit ABC-3

Supplement No1( to_J ( Deleted 2 Tariff Electric Pa PUC No 5

X_() ~e_yi__d_l_ge ~ 33-I PECO Energy Company SupersedeaXXX Page tgtlo 33

GfflERATfQN SUPfLY ADJUSTMENT FOR PROCUREMENT cusses and 2 bull (Cl _J _ LOADS up ro100KW ICONTNUEDl ____________ - - - - - - - - - - _d

PD GSA 2 $ XXXXX HT GSA 2 sxxxxx POL GSA 2 $ XXXXX SL-S GSA 2 $ xxxxx TLCL GSA 2 $ xxxxx SL-E GSA 2 $ xxxxx AL GSA 2 $ XXXXX

j ------------- ------L------------------

(C)L------------------1

------------------ ---- - --middotmiddot

- - - - - - - - - - - - - - - - - - _

------------- ----- I

------------------ lll

_ Prices shall exclude capacityJrom the Procurement Class 2 RFP results _______________________ _ _______ J1111 II I

Procedure For Procurement Classes 1~lt ~ll_e_Gsect~ ~h~ll_11_ f~epoundl ~5_dY ~e~o_e l h 11_lf11_c_i~ poundle ~f _lU11_ 1 ~efltlgtrJ _ __(Cl _ 1j December 1 and March 1 in conjunction with the Reconciliation Schedule __

1

I

bull

Ill

Ill Ill

Deleted First

Deleted Original

Deleted

Deleted

Deleted

Deleted

I Deleted

Deleted 3

Deleted sect

Deleted 007736 I

Deleted PD Clli

Deleted 007419

Delatad HT Cfjf Delatad 005848

Deleted 005848

Delatad 007869

Delated 005848

Daletad 005848

Deleted a)

Deleted

Deleted and 3

middot1 Dalated

Delatad

(C) Denotes Change

lssuedtkrch V 2016 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Elfecuv-lce 1 20 _ _A

Deleted January

Deleted 5

Deleted 6

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No l to Tariff Electric Pa PUC No 5

XXX Revised Pago No 34 lPECO Energy Company SuperaedoeXX Roviaed Pago No 34

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 bull (C -LOADS GREATERTHAN 100KW

Applicebility June 1 201l_ tt1_ls_a_poundfj(s_m_e~ _h_lll_aPPY _o_a_ CJr lk_ng ceta(ll_bull ~C~ fornJ h_ _ltltgt_mp nY ~ t_1 cern~n_poundfs______ ~ greater than100kw _

Hourly Pricing Service Pricing The rates below shall include the cost ol procunng power to serve the delault service customers plus assocated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The rates for the GSA 34 (C~ Hourly Pncmg Addermiddot shall beiJp_d_ld_qLJ_ate_rl~ o_r u1- ~eetnJrJ _D_C_flb_r_1_argt_d_M2 ~h_ 1_Cpoundlm_ergt_cg_ J_Jr_e J _2Q1J _ lf_tl_e___ _ balance of over(under) recovery gets too large due to billing lag the Company can Jle _a r ef o_rc[li llpn_tl_a_lll_m] igae Jh_ ~u_)s_equ~n _ _ _ - -impact The cost for this hourly service rate shall be as follows

Generation Supply Cost (GSC) =(C+R+AS+ACmiddotE)(1-T)+WCA where

[ Deleted 2

Deleted Second

Deleted

Deleted First

Deleted

Deletedsect

Deleted 5

Deleted 5

Deleted effective the first of each month

Deleted i

C The PJM day ahead hourly price multiplied by the customers usage in the hour summed up for all hours in the month

IPJMobullX usage (1-LL) PJMobull - PJM on day ahead hourly price Usage - Electricity used by an end use customer R = The PJM reliability pricing model (RPM) charge for month for the customer The RPM charge shall be the customers peak load contribution as established for PJM purposes multiplied by the current RPM monthly charge and the PJM established reserve margin adjustment PLC x (1 + RM) x PAPM x Bill Daye PLC = Peak load contribubon RM = Reserve margin adjustment per PJM PAPM = Capacity price per MW-day AC =Administrative Cost - This Includes an allocation of the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the plan and any other costs associated with designing and rmplementing a procurement plan divided by the total default service sales and then multiplied by the customers usage for the month Admrnistralive Costs also Includes any other costs incurred to implement retail market enhancements directed by the Commission in its Retail Market lnvesbgation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate AS x Uaage

A = Administrative cost S = Default service sales

AS= The cost on a $MWH basis of acqurnng ancillary seMces from PJM and of complying with the Alternative Energy Portfolio Standard multiplied by the customers usage for the month and divided by (1-LL) Congestion charges including the proceeds and costs from the exercise ofAuction Revenue Rrghts shall be included in ths component Ancillary services shall be those included in the Supply Master J Deleted 11Agreement as being the responslb1llty of the supplier

((PJMs x Usage1(1-LL) + AEPSSmsX Usage)

PJM = $MWH charged by PJM for ancillary services AEPS = Cost of complying wlth the alternabve energy portfolio standard s = Sales for which AEPS cost is incurred

If the supplier provides the ancillary services and AEPS cost then the customer shall be charged the suppliers rate for these services times usage and divided by (1-LL)

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges LL = Line loss factor as provided in the Companys Electnc Generation Supplier Coordination Tariff Rule 66 based upon the customers distnbution rate class adjusted to remove losses included in the PJM LMP T =The currently effecbve gross receipts lax rate 1

E - I O(U)S x usage where E = Overunder recovery as calculated in the reconciliabon 1

1

S bull Procurement class314 sales (C) 11 1

WC = $000034 kWh for working capital associated with power purchases 11

WCA = Individual customer sales x WC 11 I

Procedure The E factor shall be updated_el)11annu_ally ~n 2o_rj~n_cl_orgt_ ~t ti ~epoundQ_ri~Ji~tiQn__ ___________________ _(CJ 1 1 1The applicable above items are converted to the rates hsted below 1

II

Deleted lour

Deleted monthly

Deleted Monthly reconciliations shall be recovered over a one month period after the occurrence of a quarter

Deleted 000428

Deleted 00041 9

Deleted 000400

Tariff Ratbull GS PD HT EP Houri Pricin Adderbull dollarskWh $ XXXXX $ XXXXX $ XXXXX $ XXXXX __ ___ rlt

bull Includes admnistratve cost (AC) anallary service charge (AS) E factor (E) and working capital (WC)

~ ) Deno esfi_a_rig_e _______________________________________________________ _l

lampSUed~arch iz 201 6 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _________________E[epound1iyeIJf1 _O_fl --JI

-

Deleted 000400

Deleted (I)

Deleted I

Deleted Increase

Deleted January

Deleted 5

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric PA PUC No 5

XXX Revised Page No 35 PECO Energy Company Supe[Jed- XX Page No 35

RECONCILIATION Applicability June 1 2017 this adjustment shall apply to all customers who received default service during the period (C) the cost of which Is betng reconClled Customers taking default service during the reconctltaton period that leave default service prior to the assessment of the collection of the over(under) adjustment shall still pay or receive credit for the over(under) acffU5tment through the rrigration provision The Company shall notify the Commission and parties to the Default Service Settlement 15 days in advance of the quarterlyJiling ii the Migration Provsion wtll 1e inpl_emented In the ding

This adjustment shall be calculated on a semiannual basis for Procurement Classes 1 2 and 34 Hourly The reconciliation penod will (C) Include the six month period beginning January 1and July 1 commencng with theJuly 1 20 throughpecember ~1 20 reconciliation perioqlor poundroc_urelent Cla1111bull s 1 end 2 and the oix_moflll_ penod Ju)lt 1 2Q17 throu91 Qeceber 31 201] or P_rocurement Class ~ Hourl11 There wtll be two mtal Iran bon reconc11ation periods tor Procurement Cla 34 Hourly They are the reconahabon penod ncludmg February 2017 and the reconc11tat1on penod including the lour month penod March 1 2017 through June 30 2017 respectively The recon~ilLalonllhall be seJa~ate or e_lcl pr~)8)t_cl~_A_ny_resullng 2v_er_prul)der_r_ClVY ~IIgta_ss_essed_o_ __ an equal cenls pe~lJl~WjlJh_p_r _a~~ Ip ll_~lg)amp_SJn_the reeyaritPl)CJlle_ll_g_OP~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I

For Procurement Classes 1 and 2 and for Procurement Class 34 Hourly alter the transition period any over(under)1ecovery shall be (CJ 1

collected after the occurrence of two months from the end of the_lt_OQOli~i~n_penpd- f~ the two_intal_ran 11 on relt9riclia_J~n P2dsect (9r_ 1 Procurement Class 34 flo_urjy a]y_oye_r(~1JdfrLr02v_ery hllP~ILelt_tej -Iertle-~_rr_e~e of lhe_nio~tl_s_and _10_Tl2n_hsect _ ___ _ _ respectively_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _

For Procurement Classas 1 2 and 34 Hourly recovery shall be over a six month penod commencing September 1 and March 1 (C)__ The initial six month period sMa_rct) 1 20 throu9h_A_ugust 31 20 lor Procureflnt ClassesJ 2 nd 2 and Y1 rpoundh_1 2Q1_1 _h_ough August 31 2018 for Procurement 34 Hourly For Procurement Class 34 Hourly the two initial trans1t1on recovery penods corresponding to the two in1t1al transition reconcltation penods are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 respectovely For pulJloses of this rider the reconciliation shall be calculated 45 days before the ellecbve date of recovery The over or under recovery shall be calculated using the formula below The calculation of the over(under) recovery shall be done separately ~ for the following procurement classes - Class 1 - Residential Class 2 - Small Campl~e t_o 100 k~ arid Class 31 ha~ g~I grea1er thaI __

1(yen) ~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1a 1 Reconciliation Fonmula 1i1a 1

EN = 20(U) + I 11 1bull 1

Migration Provision EM c (lO(U) + 1]S(1-GRT)(1-ALL)(1middotLL) Al

Where II E =Experienced over or under collection plus associated Interest 11 N = Procurement class II

M = Migration Rider O(U) = The monthly difference between revenue billed to the procurement dass and the cost of supply as described below in Cost AEPS Cost and Administrative Cost

Revenue= Amount billed to the tanfl rates applicable to the procurement dass including approveqReal nrne Price or other time - - - I sens1bve rates for the period betng reconciled through the GSA

Cost = The sum of the amounts paid to all of the full requirements suppliers providing the power for the penod being reconcmiddotledJhe spot Imarket purchases for the period being reconciled plus the cost of any other energy acquired for the penod being reconaled Cost shall include energy capacty and anallary services as well as the proceeds and costs of auction revenue nghts for Procurement Classes 1 anq (C 2 _A_ncj llayseryi~es _hall lndude any allocation by JM to_PECO default selV_ce associated wtth the taiLu _of a poundM_member to pay its _ill from PJM as well as those costs listed m the Supply Master Agreement as the responsibility of the seller

AEPS = The total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not induded in the Cost component above for the reconcllabon period for Procurement Classes and_2 nd_notl ncluded In the ancl_llary se~ces coflli)Onent ~1 for Procurement Class 34 Hourly Service Costs indude the amount paid for Alternabve Energy andor Altemabve Energy Credits (AECs) 1

purchased for compliance lth the Act the cost of adminstenng and conducting any procurement of Alternative Energy andor AEC s paymen9 to the AEC program admm1strator for its costs of admnistenng an alternative energy credits program payments to a third party for ts costs in operating an AEC regshy any charge levied by PECOs regional transmsS1on operator to ensure that altematve energy sources are reliable a credit for the sale of any AECs sold dunng the calailation penod and the cost of Alternative Compliance Payments that are deemed recoverable by the Commission plus any other direct or indirect cost of acquiring Alternative Energy ancVor AECs and complying with the AEPS statute

Admlnialnllive Cost= This Includes the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the strategy and any other costs asaociated lth designing and implementing a procurement plan including the cost ol the pricng forecast necessary for estimating cost recoverable under this tanfl Also included in this component shall be the cost to implement real Ume pnang or other time sensitive priang such as dynamic pricing that is required of the Company or approved n Its Act 129 liling Administrative Costs also includes other costs incurred to Implement retail market enhancements directed by the Commission in its Retrut Market Investigation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

Full Requirements Supply= A product purchased by the Company that 1ndudes a fixed pnce for all energy consumed The only cost added by the Company to the full requirements price is for gross receipts tax distribubon line losses and administrative cost

Ancillary Services= The following services In the PJM OATT- reacbve support frequency control operating reserves supplemental reserves imbalance charges PJM annual charges any PJM assessment associated with non-payment by members and any other load serving entity charges not ltsted here but contained in Exhibit D of the Supply Master Agreement Also included shall be the proceeds and costs from the exercise of aucoon revenue rights for Procurement Class 34 Hourly Servce (C)

(Cl Denotes Change _ _ _ ~ ~

lssuedllrpoundh_1Z ~0_16__ __ _____ ___ ~ == -= ==-__ ___~ -== ==-_____ _-bull-=-_ _E~ef ~eiun 1lt1 _ 4

Deleted QliuilllI Deleted 5

Deleted or monthly

Deleted

Deleted January

Deleted 5

Deleted June

Deleted 0

Deleted 5

Deleted

Deleted The initial reconclltatlon penod lor Procurement Classes 1 2 and 3 wtll include the month of December 201411 lth recovery ocaimng during the three month penod June 1 2015 through August 31 2015 F

Deleted )-

Deleted

Deleted t

Deleted 11 rT41 Deleted II

Deleted II

Deleted

Deleted 1l

Deleted reconrunon

Deleted 11

Deleted 1l CN Deleted with the

Deleted of

Deleted September

Deleted 5

Deleted February 29

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Deleted shall be 11 Cr6f Deleted lt

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Deleted 1

Deleted I Cm Deleted

Deleted

Deleted

Deleted and 3

Deleted

Deleted and 3

Deleted 11 rTef Deleted December middot-Deleted e Deleted s Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

PECO Exhibit ABC-3

Supplement No X to Tariff Electric Pa PUC No 5

I XX Revised Page No 29

PECO Energy ColJJPflnY euporaodes X Pgge No 2e _

RULES AND REGULATIONS (contjnuedl

21 GENERAL 211 OFFICE OF THE COMPANY Wherever in this Tariff it is provided that notice be given or sent to the Company or the office ol the

Company such notice delivered or mailed postage prepaid to any commercial office shall be deemed sullicient unless the Pnncipal Ollice of the Company at 2301 Market Street Philadelphia is expressly mentioned

212 NO PREJUDICE OF RIGHTS The failure by the Company to enforce any ol the terms ol this Tanll shall not be deemed a waiver of its right to do so

213 GRATUITIES TO EMPLOYEES The Companys employees are stnctly forbidden to demand or accept any personal compensation or gilts tor service rendered by them while working for the Company on the Companys time

214 BILLING CHANGES Where billing changes are made as the result of an investigation made at custome~s request or by routine Inspection the change ol billing may be applied to the bill tor the regular meter reading period preceding such investigation and will in any event apply to the bill tor the period during which the investigation is made

215 EXCEPTIONAL CASES The usual supply ol electric service shall be subject to the provisions ol this Tanff but where special service-supply conditions or problems arise tor which provsion is not otherwise made the Company may modify or adapt its supply terms to meet the peculiar requirements ol such case provided that such modified terms are a rational expansion ol standard tanll provisions

216 ASSIGNMENT Subject to the Rules and Regulations all contracts made by the Company shall be binding upon and oblige and inure to the benefit of the successors and assigns heirs executors and administrators ol the parties thereto

217 OTHER CHARGES The Company may ii feasible provide and charge tor services other than those provided for in this Tarill when requested by the customer The Company is not obligated to provide such services The Company will if possible give the customer an advance written estmate of the costs to provide the service Costs shall include but not be limited to materials supplies labor transportation and overhead

218 TAX INDEMNIFICATION If PECO Energy becomes liable under Section 2806(g) or 2809( c) of the Public Ublity Code 66 CS sectsect 2806(g) and 2809(c) for Pennsylvania state taxes not paid by an Electnc Generation Supplier (EGS) the non-compliant EGS shall indemnity PECO Energy for the amount ol additional state tax liability imposed upon PECO Energy by the Pennsylvania Department ol Revenue due to the failure of the EGS to pay or remit to the Commonwealth the tax imposed on its gross receipts under Section 1101 of the Tax Reform Code of 1971 or Chapter 28 ol Title 66

22 RULES FOR DESIGNATION OF PROCUREMENT CLASS

221 DESIGNATION OF PROCUREMENT CLASS

a) Annually in November the Company shall nohly the customer of their procurement group class designation which shall be ellective the following June 1

b) The procurement class designation shall be used to determine the appropriate Generation Supply Adjustment to apply to the customer

c) For non-residential customers the procurement class shall be determined based upon the customers peak measured demand In

( Deleted 2tisJnll

the pnor June-May period d) There shall beJhree procurement class designations They are (C)

1) Res1dentjal 2) Small Commercial and lndustrialiJP lo and indudiQg1 00 kW ___________ _ _ _ _ _ _ _ _ _ _ ________ 3) L-_aige CornmerciaLand lndustrialgr~atertJa109~~ - ___ _ __________________________

e) Procurement class designation shall only change once per year on the date established in rule 221 a I) New customers procurement class shall be based upon an engineering estimate of their diversified peak demand for a new facility

or an existing facility with a substantially dillerent use g) A new customer in an existing fac1hty shall be assigned to the same procurement class as the last customer In that

facility unless rule 221 f applies

J - Deleted lour

I__ 1- ~ 11 I

I I

I

Deleted 0

Deleted -

Deleted Medium

Deleted 101-500

Deleted 11

Deleted 4)

Deleted Large Commercial and Industrial over SOO kW

I (C) Denotes Change I JI

1 lssuedlAarch 1Z 2Q_ _____________________________________________EbulltIB_lnj Q[ ~ -

Deleted December 18

Deleted 6

Deleted 5

Deleted

Deleted January

Deleted

Deleted 6

---

------------------------

PECO Exhibit ABC-3

Supplement No)( to _J Deleted 2 Tariff Electric Pa PUC No 5

XXX Revieed Page No 32 _J PECO Energy Company SupieiieaXXXPage No32 J

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASSES 1 md 2 ~~ LOADS UP TO 100KW

Applicability June 1 20 lig dju~ le_rll~ l_a~~ppJy_t_ aj_l poundU~l~ e a~igfef~ II seryipounde 1r~ltgt_e_Cg ~ Y ~Ih~ ~ ~ds ~p _lo__ _ ~ ~ JOQ ~yen- T)e_rate_contaj_n11d_herein siaJI be calculated to the_neare_t etOr dlh_of_a_ce_nt Jhe GSA shall contin the cost of generallon supply for each tanlf rate 1

I

Pricing The rates below shall include the cost of procuring power to serve the defaull service customers including lhe cost of complying with the Allernative Energy Portfolio Standards Act (AEPS or the Act) plus associated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The pricing for default service will represent the estimate of the cost i 1

Ito serve the specific tariff rate for the next quarterly penod beginning with the three months ended August 31 20 __he rate_intll_s_tarilf _ t bull 7

111shall be updated quarterly on June 1 September 1 December 1 and March 1 commencing June 1 20 If the balance of over(under) 1

e~~l~l=~ ~~n~~middot f~~~~r~~u~~ file a reconciliation that will mitigate the subsequent impact The gene at1on service cha-rge sha lf 1 1I I

II

GSA(n) =(C-E+A)S1(1middotT) (1middotALL)(1middotLL) +AEPS51(1 bull T) + WC where

I 1

C= The sum of the amounts paid to the full requirements suppliers providing the power lor the quarterly penod the spot market purchases 11 for the quarterly period plus the cost of any other energy acquired for the quarterly period Cost shall include energy capacity and ancillary services dstribution line losses cost of complying with the Alternative Energy Portfolio Standards and any other load serving ent~y charges other than network transmissaon service and costs assigned under the Regional transmssion Expansion Plan Ancillary services shall indude any allocation by PJM to PECO defaull service associated with the failure of a PJM member to pay its bill from PJM as well as the load serving entity charges listed in the Supply Master Agreement Exhibit Das the responsibility of the supplier This component shall indude the proceeds and costs from the exercise of Aucti on Revenue Rights granted to PECO by PJM AEPS =The projected total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not included in the C component above for the quarterly penod for each procurement class Costs include the amount paid for Alternative Energy andor Alternative Energy Credits (AECs) purchased for compliance with the Act the cost of adrrinistering and conducting any procurement of Alternative Energy andor AECs payments to the AEC program administrator for its costs of admnistering an altemabve energy credits program payments to a third party for its costs In operating an AEC registry any charge levied by PECOs regional transmss1on operator to ensure that allernative energy sources are reliable a credit for the sale of any AECs sold during the calculation period and the cost of Alternative Compliance Payments that are deemed recoverable by the Commss1on plus any other direct or indirect cost of acquiring Alternative Energy andor AECs and complying with the AEPS statute

E = Experienced over or under-collection calculated under the reconcihation provision of the tariff to be effective semannually with recovery during the penods March 1 through August 31 of the current year and September 1 of the current year through February 28 (29) of the followin ~~ L _____________________________________________________________ ~

A = Administrative Cost - This indudes the cost of the Independent Evaluator consultants prov1d1ng guidance on the development of the procurement plan legal fees incurred gaining approval of the plan and any other costs associated with designing and implementing a procurement plan including the cost of the pncing forecast necessary for estimating cost recoverable under this tanll Also included in this component shall be the cost to implement real time priong or other time sensitive priong such as dynarric pno ng that is required of the Company or is approved in its Act 129 ftling Administrative Costs also includes any other cos s Incurred to implement retad market enhancements directed by the Commission in its Retail Market Investigation at Docket No t-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

S = Estimated sales for the penod the rate is In effect for the classes to which the rate 1s applicable Six month sales are used for the E

~~~ ~l~~~~~~r~ri~~ ~~~ ~ th~g ug~ ~3~ f ~h ~u e t a~ a~ ~e t~~ 1 f ~h ~u~re ~ a~t r u~~ Febru ry 8_( 9~ _ JlCl

T =The currently effective gross receipts tax rate

n = The procurement class for which the GSA is being calculated

ALL = Average line losses for the procurement class

LL = Line losses for the specific rate dass provided in the Companys Electnc Generation Supplier Coordlnabon Tanff rule 66

WC = $000034kWh to represent the cash working capital for power purchases

Auction Revenue Rights (ARR) =Allocated annually by PJM to Frm transm sson customers the ARR s allow a Company to select nghts to specific transmission paths in order to av01d congestion charges In general the lrne loss adJustmont is applicable to Procurement Class 2 and 3 only as those classes contain rate classes with three different line loss factors Current Charges

Deleted Fit

Deleted

Deleted Origirwl

Deleted

Deletect M

Deleted

Deleted

Deleted

Deleted d

Ddeted i Deleted s Deleted

Deleted S

Deleted

Deleted 5

Deleted

Deleted s Deleted

Deleted As descri bed in the recone1 llat on provision of the tanll the initial reconciliation period including the month of December 2014 will be11 recovered during the penod June 1 201 5 through August 31 201S The initial six month reconci liati on period will include January 1 201 S through June 30 201 5 and the initial six month elfect1ve sales recovery penod will be September 1 2015 through February 29 2016

Deleted )11

Deleted

Deleted T he initial E factor sales period wi ll be June 1 201 5 through August 31 201 5 The inibal six month effective E factor sales penod wi ll be September 1 201 5 through February 29 201 6

Deleted

Deleted ltobjectgt

Rate GSA Price

R GSA(1) $)( XXXXX

RH GSA(1) $ XXXXXX

GS GSA (2) $ xxxxxx -

Deleted O

Deleted 07383

Deleted 007383

Deleted 007869

Deleted GS Cm Deleted January

Deleted 56

Deleted March

Deleted 6

(C)

== ~==================-=- J~-- - ---------------- - --(C) Denotes Change lssuedAarch 2016 Effearvetune 1 20

--------------------

PECO Exhibit ABC-3

Supplement No1( to_J ( Deleted 2 Tariff Electric Pa PUC No 5

X_() ~e_yi__d_l_ge ~ 33-I PECO Energy Company SupersedeaXXX Page tgtlo 33

GfflERATfQN SUPfLY ADJUSTMENT FOR PROCUREMENT cusses and 2 bull (Cl _J _ LOADS up ro100KW ICONTNUEDl ____________ - - - - - - - - - - _d

PD GSA 2 $ XXXXX HT GSA 2 sxxxxx POL GSA 2 $ XXXXX SL-S GSA 2 $ xxxxx TLCL GSA 2 $ xxxxx SL-E GSA 2 $ xxxxx AL GSA 2 $ XXXXX

j ------------- ------L------------------

(C)L------------------1

------------------ ---- - --middotmiddot

- - - - - - - - - - - - - - - - - - _

------------- ----- I

------------------ lll

_ Prices shall exclude capacityJrom the Procurement Class 2 RFP results _______________________ _ _______ J1111 II I

Procedure For Procurement Classes 1~lt ~ll_e_Gsect~ ~h~ll_11_ f~epoundl ~5_dY ~e~o_e l h 11_lf11_c_i~ poundle ~f _lU11_ 1 ~efltlgtrJ _ __(Cl _ 1j December 1 and March 1 in conjunction with the Reconciliation Schedule __

1

I

bull

Ill

Ill Ill

Deleted First

Deleted Original

Deleted

Deleted

Deleted

Deleted

I Deleted

Deleted 3

Deleted sect

Deleted 007736 I

Deleted PD Clli

Deleted 007419

Delatad HT Cfjf Delatad 005848

Deleted 005848

Delatad 007869

Delated 005848

Daletad 005848

Deleted a)

Deleted

Deleted and 3

middot1 Dalated

Delatad

(C) Denotes Change

lssuedtkrch V 2016 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Elfecuv-lce 1 20 _ _A

Deleted January

Deleted 5

Deleted 6

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No l to Tariff Electric Pa PUC No 5

XXX Revised Pago No 34 lPECO Energy Company SuperaedoeXX Roviaed Pago No 34

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 bull (C -LOADS GREATERTHAN 100KW

Applicebility June 1 201l_ tt1_ls_a_poundfj(s_m_e~ _h_lll_aPPY _o_a_ CJr lk_ng ceta(ll_bull ~C~ fornJ h_ _ltltgt_mp nY ~ t_1 cern~n_poundfs______ ~ greater than100kw _

Hourly Pricing Service Pricing The rates below shall include the cost ol procunng power to serve the delault service customers plus assocated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The rates for the GSA 34 (C~ Hourly Pncmg Addermiddot shall beiJp_d_ld_qLJ_ate_rl~ o_r u1- ~eetnJrJ _D_C_flb_r_1_argt_d_M2 ~h_ 1_Cpoundlm_ergt_cg_ J_Jr_e J _2Q1J _ lf_tl_e___ _ balance of over(under) recovery gets too large due to billing lag the Company can Jle _a r ef o_rc[li llpn_tl_a_lll_m] igae Jh_ ~u_)s_equ~n _ _ _ - -impact The cost for this hourly service rate shall be as follows

Generation Supply Cost (GSC) =(C+R+AS+ACmiddotE)(1-T)+WCA where

[ Deleted 2

Deleted Second

Deleted

Deleted First

Deleted

Deletedsect

Deleted 5

Deleted 5

Deleted effective the first of each month

Deleted i

C The PJM day ahead hourly price multiplied by the customers usage in the hour summed up for all hours in the month

IPJMobullX usage (1-LL) PJMobull - PJM on day ahead hourly price Usage - Electricity used by an end use customer R = The PJM reliability pricing model (RPM) charge for month for the customer The RPM charge shall be the customers peak load contribution as established for PJM purposes multiplied by the current RPM monthly charge and the PJM established reserve margin adjustment PLC x (1 + RM) x PAPM x Bill Daye PLC = Peak load contribubon RM = Reserve margin adjustment per PJM PAPM = Capacity price per MW-day AC =Administrative Cost - This Includes an allocation of the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the plan and any other costs associated with designing and rmplementing a procurement plan divided by the total default service sales and then multiplied by the customers usage for the month Admrnistralive Costs also Includes any other costs incurred to implement retail market enhancements directed by the Commission in its Retail Market lnvesbgation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate AS x Uaage

A = Administrative cost S = Default service sales

AS= The cost on a $MWH basis of acqurnng ancillary seMces from PJM and of complying with the Alternative Energy Portfolio Standard multiplied by the customers usage for the month and divided by (1-LL) Congestion charges including the proceeds and costs from the exercise ofAuction Revenue Rrghts shall be included in ths component Ancillary services shall be those included in the Supply Master J Deleted 11Agreement as being the responslb1llty of the supplier

((PJMs x Usage1(1-LL) + AEPSSmsX Usage)

PJM = $MWH charged by PJM for ancillary services AEPS = Cost of complying wlth the alternabve energy portfolio standard s = Sales for which AEPS cost is incurred

If the supplier provides the ancillary services and AEPS cost then the customer shall be charged the suppliers rate for these services times usage and divided by (1-LL)

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges LL = Line loss factor as provided in the Companys Electnc Generation Supplier Coordination Tariff Rule 66 based upon the customers distnbution rate class adjusted to remove losses included in the PJM LMP T =The currently effecbve gross receipts lax rate 1

E - I O(U)S x usage where E = Overunder recovery as calculated in the reconciliabon 1

1

S bull Procurement class314 sales (C) 11 1

WC = $000034 kWh for working capital associated with power purchases 11

WCA = Individual customer sales x WC 11 I

Procedure The E factor shall be updated_el)11annu_ally ~n 2o_rj~n_cl_orgt_ ~t ti ~epoundQ_ri~Ji~tiQn__ ___________________ _(CJ 1 1 1The applicable above items are converted to the rates hsted below 1

II

Deleted lour

Deleted monthly

Deleted Monthly reconciliations shall be recovered over a one month period after the occurrence of a quarter

Deleted 000428

Deleted 00041 9

Deleted 000400

Tariff Ratbull GS PD HT EP Houri Pricin Adderbull dollarskWh $ XXXXX $ XXXXX $ XXXXX $ XXXXX __ ___ rlt

bull Includes admnistratve cost (AC) anallary service charge (AS) E factor (E) and working capital (WC)

~ ) Deno esfi_a_rig_e _______________________________________________________ _l

lampSUed~arch iz 201 6 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _________________E[epound1iyeIJf1 _O_fl --JI

-

Deleted 000400

Deleted (I)

Deleted I

Deleted Increase

Deleted January

Deleted 5

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric PA PUC No 5

XXX Revised Page No 35 PECO Energy Company Supe[Jed- XX Page No 35

RECONCILIATION Applicability June 1 2017 this adjustment shall apply to all customers who received default service during the period (C) the cost of which Is betng reconClled Customers taking default service during the reconctltaton period that leave default service prior to the assessment of the collection of the over(under) adjustment shall still pay or receive credit for the over(under) acffU5tment through the rrigration provision The Company shall notify the Commission and parties to the Default Service Settlement 15 days in advance of the quarterlyJiling ii the Migration Provsion wtll 1e inpl_emented In the ding

This adjustment shall be calculated on a semiannual basis for Procurement Classes 1 2 and 34 Hourly The reconciliation penod will (C) Include the six month period beginning January 1and July 1 commencng with theJuly 1 20 throughpecember ~1 20 reconciliation perioqlor poundroc_urelent Cla1111bull s 1 end 2 and the oix_moflll_ penod Ju)lt 1 2Q17 throu91 Qeceber 31 201] or P_rocurement Class ~ Hourl11 There wtll be two mtal Iran bon reconc11ation periods tor Procurement Cla 34 Hourly They are the reconahabon penod ncludmg February 2017 and the reconc11tat1on penod including the lour month penod March 1 2017 through June 30 2017 respectively The recon~ilLalonllhall be seJa~ate or e_lcl pr~)8)t_cl~_A_ny_resullng 2v_er_prul)der_r_ClVY ~IIgta_ss_essed_o_ __ an equal cenls pe~lJl~WjlJh_p_r _a~~ Ip ll_~lg)amp_SJn_the reeyaritPl)CJlle_ll_g_OP~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I

For Procurement Classes 1 and 2 and for Procurement Class 34 Hourly alter the transition period any over(under)1ecovery shall be (CJ 1

collected after the occurrence of two months from the end of the_lt_OQOli~i~n_penpd- f~ the two_intal_ran 11 on relt9riclia_J~n P2dsect (9r_ 1 Procurement Class 34 flo_urjy a]y_oye_r(~1JdfrLr02v_ery hllP~ILelt_tej -Iertle-~_rr_e~e of lhe_nio~tl_s_and _10_Tl2n_hsect _ ___ _ _ respectively_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _

For Procurement Classas 1 2 and 34 Hourly recovery shall be over a six month penod commencing September 1 and March 1 (C)__ The initial six month period sMa_rct) 1 20 throu9h_A_ugust 31 20 lor Procureflnt ClassesJ 2 nd 2 and Y1 rpoundh_1 2Q1_1 _h_ough August 31 2018 for Procurement 34 Hourly For Procurement Class 34 Hourly the two initial trans1t1on recovery penods corresponding to the two in1t1al transition reconcltation penods are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 respectovely For pulJloses of this rider the reconciliation shall be calculated 45 days before the ellecbve date of recovery The over or under recovery shall be calculated using the formula below The calculation of the over(under) recovery shall be done separately ~ for the following procurement classes - Class 1 - Residential Class 2 - Small Campl~e t_o 100 k~ arid Class 31 ha~ g~I grea1er thaI __

1(yen) ~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1a 1 Reconciliation Fonmula 1i1a 1

EN = 20(U) + I 11 1bull 1

Migration Provision EM c (lO(U) + 1]S(1-GRT)(1-ALL)(1middotLL) Al

Where II E =Experienced over or under collection plus associated Interest 11 N = Procurement class II

M = Migration Rider O(U) = The monthly difference between revenue billed to the procurement dass and the cost of supply as described below in Cost AEPS Cost and Administrative Cost

Revenue= Amount billed to the tanfl rates applicable to the procurement dass including approveqReal nrne Price or other time - - - I sens1bve rates for the period betng reconciled through the GSA

Cost = The sum of the amounts paid to all of the full requirements suppliers providing the power for the penod being reconcmiddotledJhe spot Imarket purchases for the period being reconciled plus the cost of any other energy acquired for the penod being reconaled Cost shall include energy capacty and anallary services as well as the proceeds and costs of auction revenue nghts for Procurement Classes 1 anq (C 2 _A_ncj llayseryi~es _hall lndude any allocation by JM to_PECO default selV_ce associated wtth the taiLu _of a poundM_member to pay its _ill from PJM as well as those costs listed m the Supply Master Agreement as the responsibility of the seller

AEPS = The total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not induded in the Cost component above for the reconcllabon period for Procurement Classes and_2 nd_notl ncluded In the ancl_llary se~ces coflli)Onent ~1 for Procurement Class 34 Hourly Service Costs indude the amount paid for Alternabve Energy andor Altemabve Energy Credits (AECs) 1

purchased for compliance lth the Act the cost of adminstenng and conducting any procurement of Alternative Energy andor AEC s paymen9 to the AEC program admm1strator for its costs of admnistenng an alternative energy credits program payments to a third party for ts costs in operating an AEC regshy any charge levied by PECOs regional transmsS1on operator to ensure that altematve energy sources are reliable a credit for the sale of any AECs sold dunng the calailation penod and the cost of Alternative Compliance Payments that are deemed recoverable by the Commission plus any other direct or indirect cost of acquiring Alternative Energy ancVor AECs and complying with the AEPS statute

Admlnialnllive Cost= This Includes the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the strategy and any other costs asaociated lth designing and implementing a procurement plan including the cost ol the pricng forecast necessary for estimating cost recoverable under this tanfl Also included in this component shall be the cost to implement real Ume pnang or other time sensitive priang such as dynamic pricing that is required of the Company or approved n Its Act 129 liling Administrative Costs also includes other costs incurred to Implement retail market enhancements directed by the Commission in its Retrut Market Investigation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

Full Requirements Supply= A product purchased by the Company that 1ndudes a fixed pnce for all energy consumed The only cost added by the Company to the full requirements price is for gross receipts tax distribubon line losses and administrative cost

Ancillary Services= The following services In the PJM OATT- reacbve support frequency control operating reserves supplemental reserves imbalance charges PJM annual charges any PJM assessment associated with non-payment by members and any other load serving entity charges not ltsted here but contained in Exhibit D of the Supply Master Agreement Also included shall be the proceeds and costs from the exercise of aucoon revenue rights for Procurement Class 34 Hourly Servce (C)

(Cl Denotes Change _ _ _ ~ ~

lssuedllrpoundh_1Z ~0_16__ __ _____ ___ ~ == -= ==-__ ___~ -== ==-_____ _-bull-=-_ _E~ef ~eiun 1lt1 _ 4

Deleted QliuilllI Deleted 5

Deleted or monthly

Deleted

Deleted January

Deleted 5

Deleted June

Deleted 0

Deleted 5

Deleted

Deleted The initial reconclltatlon penod lor Procurement Classes 1 2 and 3 wtll include the month of December 201411 lth recovery ocaimng during the three month penod June 1 2015 through August 31 2015 F

Deleted )-

Deleted

Deleted t

Deleted 11 rT41 Deleted II

Deleted II

Deleted

Deleted 1l

Deleted reconrunon

Deleted 11

Deleted 1l CN Deleted with the

Deleted of

Deleted September

Deleted 5

Deleted February 29

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Deleted shall be 11 Cr6f Deleted lt

Deleted Medium

Deleted 1

Deleted I Cm Deleted

Deleted

Deleted

Deleted and 3

Deleted

Deleted and 3

Deleted 11 rTef Deleted December middot-Deleted e Deleted s Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

---

------------------------

PECO Exhibit ABC-3

Supplement No)( to _J Deleted 2 Tariff Electric Pa PUC No 5

XXX Revieed Page No 32 _J PECO Energy Company SupieiieaXXXPage No32 J

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASSES 1 md 2 ~~ LOADS UP TO 100KW

Applicability June 1 20 lig dju~ le_rll~ l_a~~ppJy_t_ aj_l poundU~l~ e a~igfef~ II seryipounde 1r~ltgt_e_Cg ~ Y ~Ih~ ~ ~ds ~p _lo__ _ ~ ~ JOQ ~yen- T)e_rate_contaj_n11d_herein siaJI be calculated to the_neare_t etOr dlh_of_a_ce_nt Jhe GSA shall contin the cost of generallon supply for each tanlf rate 1

I

Pricing The rates below shall include the cost of procuring power to serve the defaull service customers including lhe cost of complying with the Allernative Energy Portfolio Standards Act (AEPS or the Act) plus associated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The pricing for default service will represent the estimate of the cost i 1

Ito serve the specific tariff rate for the next quarterly penod beginning with the three months ended August 31 20 __he rate_intll_s_tarilf _ t bull 7

111shall be updated quarterly on June 1 September 1 December 1 and March 1 commencing June 1 20 If the balance of over(under) 1

e~~l~l=~ ~~n~~middot f~~~~r~~u~~ file a reconciliation that will mitigate the subsequent impact The gene at1on service cha-rge sha lf 1 1I I

II

GSA(n) =(C-E+A)S1(1middotT) (1middotALL)(1middotLL) +AEPS51(1 bull T) + WC where

I 1

C= The sum of the amounts paid to the full requirements suppliers providing the power lor the quarterly penod the spot market purchases 11 for the quarterly period plus the cost of any other energy acquired for the quarterly period Cost shall include energy capacity and ancillary services dstribution line losses cost of complying with the Alternative Energy Portfolio Standards and any other load serving ent~y charges other than network transmissaon service and costs assigned under the Regional transmssion Expansion Plan Ancillary services shall indude any allocation by PJM to PECO defaull service associated with the failure of a PJM member to pay its bill from PJM as well as the load serving entity charges listed in the Supply Master Agreement Exhibit Das the responsibility of the supplier This component shall indude the proceeds and costs from the exercise of Aucti on Revenue Rights granted to PECO by PJM AEPS =The projected total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not included in the C component above for the quarterly penod for each procurement class Costs include the amount paid for Alternative Energy andor Alternative Energy Credits (AECs) purchased for compliance with the Act the cost of adrrinistering and conducting any procurement of Alternative Energy andor AECs payments to the AEC program administrator for its costs of admnistering an altemabve energy credits program payments to a third party for its costs In operating an AEC registry any charge levied by PECOs regional transmss1on operator to ensure that allernative energy sources are reliable a credit for the sale of any AECs sold during the calculation period and the cost of Alternative Compliance Payments that are deemed recoverable by the Commss1on plus any other direct or indirect cost of acquiring Alternative Energy andor AECs and complying with the AEPS statute

E = Experienced over or under-collection calculated under the reconcihation provision of the tariff to be effective semannually with recovery during the penods March 1 through August 31 of the current year and September 1 of the current year through February 28 (29) of the followin ~~ L _____________________________________________________________ ~

A = Administrative Cost - This indudes the cost of the Independent Evaluator consultants prov1d1ng guidance on the development of the procurement plan legal fees incurred gaining approval of the plan and any other costs associated with designing and implementing a procurement plan including the cost of the pncing forecast necessary for estimating cost recoverable under this tanll Also included in this component shall be the cost to implement real time priong or other time sensitive priong such as dynarric pno ng that is required of the Company or is approved in its Act 129 ftling Administrative Costs also includes any other cos s Incurred to implement retad market enhancements directed by the Commission in its Retail Market Investigation at Docket No t-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

S = Estimated sales for the penod the rate is In effect for the classes to which the rate 1s applicable Six month sales are used for the E

~~~ ~l~~~~~~r~ri~~ ~~~ ~ th~g ug~ ~3~ f ~h ~u e t a~ a~ ~e t~~ 1 f ~h ~u~re ~ a~t r u~~ Febru ry 8_( 9~ _ JlCl

T =The currently effective gross receipts tax rate

n = The procurement class for which the GSA is being calculated

ALL = Average line losses for the procurement class

LL = Line losses for the specific rate dass provided in the Companys Electnc Generation Supplier Coordlnabon Tanff rule 66

WC = $000034kWh to represent the cash working capital for power purchases

Auction Revenue Rights (ARR) =Allocated annually by PJM to Frm transm sson customers the ARR s allow a Company to select nghts to specific transmission paths in order to av01d congestion charges In general the lrne loss adJustmont is applicable to Procurement Class 2 and 3 only as those classes contain rate classes with three different line loss factors Current Charges

Deleted Fit

Deleted

Deleted Origirwl

Deleted

Deletect M

Deleted

Deleted

Deleted

Deleted d

Ddeted i Deleted s Deleted

Deleted S

Deleted

Deleted 5

Deleted

Deleted s Deleted

Deleted As descri bed in the recone1 llat on provision of the tanll the initial reconciliation period including the month of December 2014 will be11 recovered during the penod June 1 201 5 through August 31 201S The initial six month reconci liati on period will include January 1 201 S through June 30 201 5 and the initial six month elfect1ve sales recovery penod will be September 1 2015 through February 29 2016

Deleted )11

Deleted

Deleted T he initial E factor sales period wi ll be June 1 201 5 through August 31 201 5 The inibal six month effective E factor sales penod wi ll be September 1 201 5 through February 29 201 6

Deleted

Deleted ltobjectgt

Rate GSA Price

R GSA(1) $)( XXXXX

RH GSA(1) $ XXXXXX

GS GSA (2) $ xxxxxx -

Deleted O

Deleted 07383

Deleted 007383

Deleted 007869

Deleted GS Cm Deleted January

Deleted 56

Deleted March

Deleted 6

(C)

== ~==================-=- J~-- - ---------------- - --(C) Denotes Change lssuedAarch 2016 Effearvetune 1 20

--------------------

PECO Exhibit ABC-3

Supplement No1( to_J ( Deleted 2 Tariff Electric Pa PUC No 5

X_() ~e_yi__d_l_ge ~ 33-I PECO Energy Company SupersedeaXXX Page tgtlo 33

GfflERATfQN SUPfLY ADJUSTMENT FOR PROCUREMENT cusses and 2 bull (Cl _J _ LOADS up ro100KW ICONTNUEDl ____________ - - - - - - - - - - _d

PD GSA 2 $ XXXXX HT GSA 2 sxxxxx POL GSA 2 $ XXXXX SL-S GSA 2 $ xxxxx TLCL GSA 2 $ xxxxx SL-E GSA 2 $ xxxxx AL GSA 2 $ XXXXX

j ------------- ------L------------------

(C)L------------------1

------------------ ---- - --middotmiddot

- - - - - - - - - - - - - - - - - - _

------------- ----- I

------------------ lll

_ Prices shall exclude capacityJrom the Procurement Class 2 RFP results _______________________ _ _______ J1111 II I

Procedure For Procurement Classes 1~lt ~ll_e_Gsect~ ~h~ll_11_ f~epoundl ~5_dY ~e~o_e l h 11_lf11_c_i~ poundle ~f _lU11_ 1 ~efltlgtrJ _ __(Cl _ 1j December 1 and March 1 in conjunction with the Reconciliation Schedule __

1

I

bull

Ill

Ill Ill

Deleted First

Deleted Original

Deleted

Deleted

Deleted

Deleted

I Deleted

Deleted 3

Deleted sect

Deleted 007736 I

Deleted PD Clli

Deleted 007419

Delatad HT Cfjf Delatad 005848

Deleted 005848

Delatad 007869

Delated 005848

Daletad 005848

Deleted a)

Deleted

Deleted and 3

middot1 Dalated

Delatad

(C) Denotes Change

lssuedtkrch V 2016 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Elfecuv-lce 1 20 _ _A

Deleted January

Deleted 5

Deleted 6

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No l to Tariff Electric Pa PUC No 5

XXX Revised Pago No 34 lPECO Energy Company SuperaedoeXX Roviaed Pago No 34

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 bull (C -LOADS GREATERTHAN 100KW

Applicebility June 1 201l_ tt1_ls_a_poundfj(s_m_e~ _h_lll_aPPY _o_a_ CJr lk_ng ceta(ll_bull ~C~ fornJ h_ _ltltgt_mp nY ~ t_1 cern~n_poundfs______ ~ greater than100kw _

Hourly Pricing Service Pricing The rates below shall include the cost ol procunng power to serve the delault service customers plus assocated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The rates for the GSA 34 (C~ Hourly Pncmg Addermiddot shall beiJp_d_ld_qLJ_ate_rl~ o_r u1- ~eetnJrJ _D_C_flb_r_1_argt_d_M2 ~h_ 1_Cpoundlm_ergt_cg_ J_Jr_e J _2Q1J _ lf_tl_e___ _ balance of over(under) recovery gets too large due to billing lag the Company can Jle _a r ef o_rc[li llpn_tl_a_lll_m] igae Jh_ ~u_)s_equ~n _ _ _ - -impact The cost for this hourly service rate shall be as follows

Generation Supply Cost (GSC) =(C+R+AS+ACmiddotE)(1-T)+WCA where

[ Deleted 2

Deleted Second

Deleted

Deleted First

Deleted

Deletedsect

Deleted 5

Deleted 5

Deleted effective the first of each month

Deleted i

C The PJM day ahead hourly price multiplied by the customers usage in the hour summed up for all hours in the month

IPJMobullX usage (1-LL) PJMobull - PJM on day ahead hourly price Usage - Electricity used by an end use customer R = The PJM reliability pricing model (RPM) charge for month for the customer The RPM charge shall be the customers peak load contribution as established for PJM purposes multiplied by the current RPM monthly charge and the PJM established reserve margin adjustment PLC x (1 + RM) x PAPM x Bill Daye PLC = Peak load contribubon RM = Reserve margin adjustment per PJM PAPM = Capacity price per MW-day AC =Administrative Cost - This Includes an allocation of the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the plan and any other costs associated with designing and rmplementing a procurement plan divided by the total default service sales and then multiplied by the customers usage for the month Admrnistralive Costs also Includes any other costs incurred to implement retail market enhancements directed by the Commission in its Retail Market lnvesbgation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate AS x Uaage

A = Administrative cost S = Default service sales

AS= The cost on a $MWH basis of acqurnng ancillary seMces from PJM and of complying with the Alternative Energy Portfolio Standard multiplied by the customers usage for the month and divided by (1-LL) Congestion charges including the proceeds and costs from the exercise ofAuction Revenue Rrghts shall be included in ths component Ancillary services shall be those included in the Supply Master J Deleted 11Agreement as being the responslb1llty of the supplier

((PJMs x Usage1(1-LL) + AEPSSmsX Usage)

PJM = $MWH charged by PJM for ancillary services AEPS = Cost of complying wlth the alternabve energy portfolio standard s = Sales for which AEPS cost is incurred

If the supplier provides the ancillary services and AEPS cost then the customer shall be charged the suppliers rate for these services times usage and divided by (1-LL)

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges LL = Line loss factor as provided in the Companys Electnc Generation Supplier Coordination Tariff Rule 66 based upon the customers distnbution rate class adjusted to remove losses included in the PJM LMP T =The currently effecbve gross receipts lax rate 1

E - I O(U)S x usage where E = Overunder recovery as calculated in the reconciliabon 1

1

S bull Procurement class314 sales (C) 11 1

WC = $000034 kWh for working capital associated with power purchases 11

WCA = Individual customer sales x WC 11 I

Procedure The E factor shall be updated_el)11annu_ally ~n 2o_rj~n_cl_orgt_ ~t ti ~epoundQ_ri~Ji~tiQn__ ___________________ _(CJ 1 1 1The applicable above items are converted to the rates hsted below 1

II

Deleted lour

Deleted monthly

Deleted Monthly reconciliations shall be recovered over a one month period after the occurrence of a quarter

Deleted 000428

Deleted 00041 9

Deleted 000400

Tariff Ratbull GS PD HT EP Houri Pricin Adderbull dollarskWh $ XXXXX $ XXXXX $ XXXXX $ XXXXX __ ___ rlt

bull Includes admnistratve cost (AC) anallary service charge (AS) E factor (E) and working capital (WC)

~ ) Deno esfi_a_rig_e _______________________________________________________ _l

lampSUed~arch iz 201 6 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _________________E[epound1iyeIJf1 _O_fl --JI

-

Deleted 000400

Deleted (I)

Deleted I

Deleted Increase

Deleted January

Deleted 5

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric PA PUC No 5

XXX Revised Page No 35 PECO Energy Company Supe[Jed- XX Page No 35

RECONCILIATION Applicability June 1 2017 this adjustment shall apply to all customers who received default service during the period (C) the cost of which Is betng reconClled Customers taking default service during the reconctltaton period that leave default service prior to the assessment of the collection of the over(under) adjustment shall still pay or receive credit for the over(under) acffU5tment through the rrigration provision The Company shall notify the Commission and parties to the Default Service Settlement 15 days in advance of the quarterlyJiling ii the Migration Provsion wtll 1e inpl_emented In the ding

This adjustment shall be calculated on a semiannual basis for Procurement Classes 1 2 and 34 Hourly The reconciliation penod will (C) Include the six month period beginning January 1and July 1 commencng with theJuly 1 20 throughpecember ~1 20 reconciliation perioqlor poundroc_urelent Cla1111bull s 1 end 2 and the oix_moflll_ penod Ju)lt 1 2Q17 throu91 Qeceber 31 201] or P_rocurement Class ~ Hourl11 There wtll be two mtal Iran bon reconc11ation periods tor Procurement Cla 34 Hourly They are the reconahabon penod ncludmg February 2017 and the reconc11tat1on penod including the lour month penod March 1 2017 through June 30 2017 respectively The recon~ilLalonllhall be seJa~ate or e_lcl pr~)8)t_cl~_A_ny_resullng 2v_er_prul)der_r_ClVY ~IIgta_ss_essed_o_ __ an equal cenls pe~lJl~WjlJh_p_r _a~~ Ip ll_~lg)amp_SJn_the reeyaritPl)CJlle_ll_g_OP~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I

For Procurement Classes 1 and 2 and for Procurement Class 34 Hourly alter the transition period any over(under)1ecovery shall be (CJ 1

collected after the occurrence of two months from the end of the_lt_OQOli~i~n_penpd- f~ the two_intal_ran 11 on relt9riclia_J~n P2dsect (9r_ 1 Procurement Class 34 flo_urjy a]y_oye_r(~1JdfrLr02v_ery hllP~ILelt_tej -Iertle-~_rr_e~e of lhe_nio~tl_s_and _10_Tl2n_hsect _ ___ _ _ respectively_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _

For Procurement Classas 1 2 and 34 Hourly recovery shall be over a six month penod commencing September 1 and March 1 (C)__ The initial six month period sMa_rct) 1 20 throu9h_A_ugust 31 20 lor Procureflnt ClassesJ 2 nd 2 and Y1 rpoundh_1 2Q1_1 _h_ough August 31 2018 for Procurement 34 Hourly For Procurement Class 34 Hourly the two initial trans1t1on recovery penods corresponding to the two in1t1al transition reconcltation penods are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 respectovely For pulJloses of this rider the reconciliation shall be calculated 45 days before the ellecbve date of recovery The over or under recovery shall be calculated using the formula below The calculation of the over(under) recovery shall be done separately ~ for the following procurement classes - Class 1 - Residential Class 2 - Small Campl~e t_o 100 k~ arid Class 31 ha~ g~I grea1er thaI __

1(yen) ~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1a 1 Reconciliation Fonmula 1i1a 1

EN = 20(U) + I 11 1bull 1

Migration Provision EM c (lO(U) + 1]S(1-GRT)(1-ALL)(1middotLL) Al

Where II E =Experienced over or under collection plus associated Interest 11 N = Procurement class II

M = Migration Rider O(U) = The monthly difference between revenue billed to the procurement dass and the cost of supply as described below in Cost AEPS Cost and Administrative Cost

Revenue= Amount billed to the tanfl rates applicable to the procurement dass including approveqReal nrne Price or other time - - - I sens1bve rates for the period betng reconciled through the GSA

Cost = The sum of the amounts paid to all of the full requirements suppliers providing the power for the penod being reconcmiddotledJhe spot Imarket purchases for the period being reconciled plus the cost of any other energy acquired for the penod being reconaled Cost shall include energy capacty and anallary services as well as the proceeds and costs of auction revenue nghts for Procurement Classes 1 anq (C 2 _A_ncj llayseryi~es _hall lndude any allocation by JM to_PECO default selV_ce associated wtth the taiLu _of a poundM_member to pay its _ill from PJM as well as those costs listed m the Supply Master Agreement as the responsibility of the seller

AEPS = The total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not induded in the Cost component above for the reconcllabon period for Procurement Classes and_2 nd_notl ncluded In the ancl_llary se~ces coflli)Onent ~1 for Procurement Class 34 Hourly Service Costs indude the amount paid for Alternabve Energy andor Altemabve Energy Credits (AECs) 1

purchased for compliance lth the Act the cost of adminstenng and conducting any procurement of Alternative Energy andor AEC s paymen9 to the AEC program admm1strator for its costs of admnistenng an alternative energy credits program payments to a third party for ts costs in operating an AEC regshy any charge levied by PECOs regional transmsS1on operator to ensure that altematve energy sources are reliable a credit for the sale of any AECs sold dunng the calailation penod and the cost of Alternative Compliance Payments that are deemed recoverable by the Commission plus any other direct or indirect cost of acquiring Alternative Energy ancVor AECs and complying with the AEPS statute

Admlnialnllive Cost= This Includes the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the strategy and any other costs asaociated lth designing and implementing a procurement plan including the cost ol the pricng forecast necessary for estimating cost recoverable under this tanfl Also included in this component shall be the cost to implement real Ume pnang or other time sensitive priang such as dynamic pricing that is required of the Company or approved n Its Act 129 liling Administrative Costs also includes other costs incurred to Implement retail market enhancements directed by the Commission in its Retrut Market Investigation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

Full Requirements Supply= A product purchased by the Company that 1ndudes a fixed pnce for all energy consumed The only cost added by the Company to the full requirements price is for gross receipts tax distribubon line losses and administrative cost

Ancillary Services= The following services In the PJM OATT- reacbve support frequency control operating reserves supplemental reserves imbalance charges PJM annual charges any PJM assessment associated with non-payment by members and any other load serving entity charges not ltsted here but contained in Exhibit D of the Supply Master Agreement Also included shall be the proceeds and costs from the exercise of aucoon revenue rights for Procurement Class 34 Hourly Servce (C)

(Cl Denotes Change _ _ _ ~ ~

lssuedllrpoundh_1Z ~0_16__ __ _____ ___ ~ == -= ==-__ ___~ -== ==-_____ _-bull-=-_ _E~ef ~eiun 1lt1 _ 4

Deleted QliuilllI Deleted 5

Deleted or monthly

Deleted

Deleted January

Deleted 5

Deleted June

Deleted 0

Deleted 5

Deleted

Deleted The initial reconclltatlon penod lor Procurement Classes 1 2 and 3 wtll include the month of December 201411 lth recovery ocaimng during the three month penod June 1 2015 through August 31 2015 F

Deleted )-

Deleted

Deleted t

Deleted 11 rT41 Deleted II

Deleted II

Deleted

Deleted 1l

Deleted reconrunon

Deleted 11

Deleted 1l CN Deleted with the

Deleted of

Deleted September

Deleted 5

Deleted February 29

Deleted 6

Deleted shall be 11 Cr6f Deleted lt

Deleted Medium

Deleted 1

Deleted I Cm Deleted

Deleted

Deleted

Deleted and 3

Deleted

Deleted and 3

Deleted 11 rTef Deleted December middot-Deleted e Deleted s Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

--------------------

PECO Exhibit ABC-3

Supplement No1( to_J ( Deleted 2 Tariff Electric Pa PUC No 5

X_() ~e_yi__d_l_ge ~ 33-I PECO Energy Company SupersedeaXXX Page tgtlo 33

GfflERATfQN SUPfLY ADJUSTMENT FOR PROCUREMENT cusses and 2 bull (Cl _J _ LOADS up ro100KW ICONTNUEDl ____________ - - - - - - - - - - _d

PD GSA 2 $ XXXXX HT GSA 2 sxxxxx POL GSA 2 $ XXXXX SL-S GSA 2 $ xxxxx TLCL GSA 2 $ xxxxx SL-E GSA 2 $ xxxxx AL GSA 2 $ XXXXX

j ------------- ------L------------------

(C)L------------------1

------------------ ---- - --middotmiddot

- - - - - - - - - - - - - - - - - - _

------------- ----- I

------------------ lll

_ Prices shall exclude capacityJrom the Procurement Class 2 RFP results _______________________ _ _______ J1111 II I

Procedure For Procurement Classes 1~lt ~ll_e_Gsect~ ~h~ll_11_ f~epoundl ~5_dY ~e~o_e l h 11_lf11_c_i~ poundle ~f _lU11_ 1 ~efltlgtrJ _ __(Cl _ 1j December 1 and March 1 in conjunction with the Reconciliation Schedule __

1

I

bull

Ill

Ill Ill

Deleted First

Deleted Original

Deleted

Deleted

Deleted

Deleted

I Deleted

Deleted 3

Deleted sect

Deleted 007736 I

Deleted PD Clli

Deleted 007419

Delatad HT Cfjf Delatad 005848

Deleted 005848

Delatad 007869

Delated 005848

Daletad 005848

Deleted a)

Deleted

Deleted and 3

middot1 Dalated

Delatad

(C) Denotes Change

lssuedtkrch V 2016 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ Elfecuv-lce 1 20 _ _A

Deleted January

Deleted 5

Deleted 6

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No l to Tariff Electric Pa PUC No 5

XXX Revised Pago No 34 lPECO Energy Company SuperaedoeXX Roviaed Pago No 34

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 bull (C -LOADS GREATERTHAN 100KW

Applicebility June 1 201l_ tt1_ls_a_poundfj(s_m_e~ _h_lll_aPPY _o_a_ CJr lk_ng ceta(ll_bull ~C~ fornJ h_ _ltltgt_mp nY ~ t_1 cern~n_poundfs______ ~ greater than100kw _

Hourly Pricing Service Pricing The rates below shall include the cost ol procunng power to serve the delault service customers plus assocated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The rates for the GSA 34 (C~ Hourly Pncmg Addermiddot shall beiJp_d_ld_qLJ_ate_rl~ o_r u1- ~eetnJrJ _D_C_flb_r_1_argt_d_M2 ~h_ 1_Cpoundlm_ergt_cg_ J_Jr_e J _2Q1J _ lf_tl_e___ _ balance of over(under) recovery gets too large due to billing lag the Company can Jle _a r ef o_rc[li llpn_tl_a_lll_m] igae Jh_ ~u_)s_equ~n _ _ _ - -impact The cost for this hourly service rate shall be as follows

Generation Supply Cost (GSC) =(C+R+AS+ACmiddotE)(1-T)+WCA where

[ Deleted 2

Deleted Second

Deleted

Deleted First

Deleted

Deletedsect

Deleted 5

Deleted 5

Deleted effective the first of each month

Deleted i

C The PJM day ahead hourly price multiplied by the customers usage in the hour summed up for all hours in the month

IPJMobullX usage (1-LL) PJMobull - PJM on day ahead hourly price Usage - Electricity used by an end use customer R = The PJM reliability pricing model (RPM) charge for month for the customer The RPM charge shall be the customers peak load contribution as established for PJM purposes multiplied by the current RPM monthly charge and the PJM established reserve margin adjustment PLC x (1 + RM) x PAPM x Bill Daye PLC = Peak load contribubon RM = Reserve margin adjustment per PJM PAPM = Capacity price per MW-day AC =Administrative Cost - This Includes an allocation of the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the plan and any other costs associated with designing and rmplementing a procurement plan divided by the total default service sales and then multiplied by the customers usage for the month Admrnistralive Costs also Includes any other costs incurred to implement retail market enhancements directed by the Commission in its Retail Market lnvesbgation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate AS x Uaage

A = Administrative cost S = Default service sales

AS= The cost on a $MWH basis of acqurnng ancillary seMces from PJM and of complying with the Alternative Energy Portfolio Standard multiplied by the customers usage for the month and divided by (1-LL) Congestion charges including the proceeds and costs from the exercise ofAuction Revenue Rrghts shall be included in ths component Ancillary services shall be those included in the Supply Master J Deleted 11Agreement as being the responslb1llty of the supplier

((PJMs x Usage1(1-LL) + AEPSSmsX Usage)

PJM = $MWH charged by PJM for ancillary services AEPS = Cost of complying wlth the alternabve energy portfolio standard s = Sales for which AEPS cost is incurred

If the supplier provides the ancillary services and AEPS cost then the customer shall be charged the suppliers rate for these services times usage and divided by (1-LL)

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges LL = Line loss factor as provided in the Companys Electnc Generation Supplier Coordination Tariff Rule 66 based upon the customers distnbution rate class adjusted to remove losses included in the PJM LMP T =The currently effecbve gross receipts lax rate 1

E - I O(U)S x usage where E = Overunder recovery as calculated in the reconciliabon 1

1

S bull Procurement class314 sales (C) 11 1

WC = $000034 kWh for working capital associated with power purchases 11

WCA = Individual customer sales x WC 11 I

Procedure The E factor shall be updated_el)11annu_ally ~n 2o_rj~n_cl_orgt_ ~t ti ~epoundQ_ri~Ji~tiQn__ ___________________ _(CJ 1 1 1The applicable above items are converted to the rates hsted below 1

II

Deleted lour

Deleted monthly

Deleted Monthly reconciliations shall be recovered over a one month period after the occurrence of a quarter

Deleted 000428

Deleted 00041 9

Deleted 000400

Tariff Ratbull GS PD HT EP Houri Pricin Adderbull dollarskWh $ XXXXX $ XXXXX $ XXXXX $ XXXXX __ ___ rlt

bull Includes admnistratve cost (AC) anallary service charge (AS) E factor (E) and working capital (WC)

~ ) Deno esfi_a_rig_e _______________________________________________________ _l

lampSUed~arch iz 201 6 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _________________E[epound1iyeIJf1 _O_fl --JI

-

Deleted 000400

Deleted (I)

Deleted I

Deleted Increase

Deleted January

Deleted 5

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric PA PUC No 5

XXX Revised Page No 35 PECO Energy Company Supe[Jed- XX Page No 35

RECONCILIATION Applicability June 1 2017 this adjustment shall apply to all customers who received default service during the period (C) the cost of which Is betng reconClled Customers taking default service during the reconctltaton period that leave default service prior to the assessment of the collection of the over(under) adjustment shall still pay or receive credit for the over(under) acffU5tment through the rrigration provision The Company shall notify the Commission and parties to the Default Service Settlement 15 days in advance of the quarterlyJiling ii the Migration Provsion wtll 1e inpl_emented In the ding

This adjustment shall be calculated on a semiannual basis for Procurement Classes 1 2 and 34 Hourly The reconciliation penod will (C) Include the six month period beginning January 1and July 1 commencng with theJuly 1 20 throughpecember ~1 20 reconciliation perioqlor poundroc_urelent Cla1111bull s 1 end 2 and the oix_moflll_ penod Ju)lt 1 2Q17 throu91 Qeceber 31 201] or P_rocurement Class ~ Hourl11 There wtll be two mtal Iran bon reconc11ation periods tor Procurement Cla 34 Hourly They are the reconahabon penod ncludmg February 2017 and the reconc11tat1on penod including the lour month penod March 1 2017 through June 30 2017 respectively The recon~ilLalonllhall be seJa~ate or e_lcl pr~)8)t_cl~_A_ny_resullng 2v_er_prul)der_r_ClVY ~IIgta_ss_essed_o_ __ an equal cenls pe~lJl~WjlJh_p_r _a~~ Ip ll_~lg)amp_SJn_the reeyaritPl)CJlle_ll_g_OP~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I

For Procurement Classes 1 and 2 and for Procurement Class 34 Hourly alter the transition period any over(under)1ecovery shall be (CJ 1

collected after the occurrence of two months from the end of the_lt_OQOli~i~n_penpd- f~ the two_intal_ran 11 on relt9riclia_J~n P2dsect (9r_ 1 Procurement Class 34 flo_urjy a]y_oye_r(~1JdfrLr02v_ery hllP~ILelt_tej -Iertle-~_rr_e~e of lhe_nio~tl_s_and _10_Tl2n_hsect _ ___ _ _ respectively_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _

For Procurement Classas 1 2 and 34 Hourly recovery shall be over a six month penod commencing September 1 and March 1 (C)__ The initial six month period sMa_rct) 1 20 throu9h_A_ugust 31 20 lor Procureflnt ClassesJ 2 nd 2 and Y1 rpoundh_1 2Q1_1 _h_ough August 31 2018 for Procurement 34 Hourly For Procurement Class 34 Hourly the two initial trans1t1on recovery penods corresponding to the two in1t1al transition reconcltation penods are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 respectovely For pulJloses of this rider the reconciliation shall be calculated 45 days before the ellecbve date of recovery The over or under recovery shall be calculated using the formula below The calculation of the over(under) recovery shall be done separately ~ for the following procurement classes - Class 1 - Residential Class 2 - Small Campl~e t_o 100 k~ arid Class 31 ha~ g~I grea1er thaI __

1(yen) ~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1a 1 Reconciliation Fonmula 1i1a 1

EN = 20(U) + I 11 1bull 1

Migration Provision EM c (lO(U) + 1]S(1-GRT)(1-ALL)(1middotLL) Al

Where II E =Experienced over or under collection plus associated Interest 11 N = Procurement class II

M = Migration Rider O(U) = The monthly difference between revenue billed to the procurement dass and the cost of supply as described below in Cost AEPS Cost and Administrative Cost

Revenue= Amount billed to the tanfl rates applicable to the procurement dass including approveqReal nrne Price or other time - - - I sens1bve rates for the period betng reconciled through the GSA

Cost = The sum of the amounts paid to all of the full requirements suppliers providing the power for the penod being reconcmiddotledJhe spot Imarket purchases for the period being reconciled plus the cost of any other energy acquired for the penod being reconaled Cost shall include energy capacty and anallary services as well as the proceeds and costs of auction revenue nghts for Procurement Classes 1 anq (C 2 _A_ncj llayseryi~es _hall lndude any allocation by JM to_PECO default selV_ce associated wtth the taiLu _of a poundM_member to pay its _ill from PJM as well as those costs listed m the Supply Master Agreement as the responsibility of the seller

AEPS = The total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not induded in the Cost component above for the reconcllabon period for Procurement Classes and_2 nd_notl ncluded In the ancl_llary se~ces coflli)Onent ~1 for Procurement Class 34 Hourly Service Costs indude the amount paid for Alternabve Energy andor Altemabve Energy Credits (AECs) 1

purchased for compliance lth the Act the cost of adminstenng and conducting any procurement of Alternative Energy andor AEC s paymen9 to the AEC program admm1strator for its costs of admnistenng an alternative energy credits program payments to a third party for ts costs in operating an AEC regshy any charge levied by PECOs regional transmsS1on operator to ensure that altematve energy sources are reliable a credit for the sale of any AECs sold dunng the calailation penod and the cost of Alternative Compliance Payments that are deemed recoverable by the Commission plus any other direct or indirect cost of acquiring Alternative Energy ancVor AECs and complying with the AEPS statute

Admlnialnllive Cost= This Includes the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the strategy and any other costs asaociated lth designing and implementing a procurement plan including the cost ol the pricng forecast necessary for estimating cost recoverable under this tanfl Also included in this component shall be the cost to implement real Ume pnang or other time sensitive priang such as dynamic pricing that is required of the Company or approved n Its Act 129 liling Administrative Costs also includes other costs incurred to Implement retail market enhancements directed by the Commission in its Retrut Market Investigation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

Full Requirements Supply= A product purchased by the Company that 1ndudes a fixed pnce for all energy consumed The only cost added by the Company to the full requirements price is for gross receipts tax distribubon line losses and administrative cost

Ancillary Services= The following services In the PJM OATT- reacbve support frequency control operating reserves supplemental reserves imbalance charges PJM annual charges any PJM assessment associated with non-payment by members and any other load serving entity charges not ltsted here but contained in Exhibit D of the Supply Master Agreement Also included shall be the proceeds and costs from the exercise of aucoon revenue rights for Procurement Class 34 Hourly Servce (C)

(Cl Denotes Change _ _ _ ~ ~

lssuedllrpoundh_1Z ~0_16__ __ _____ ___ ~ == -= ==-__ ___~ -== ==-_____ _-bull-=-_ _E~ef ~eiun 1lt1 _ 4

Deleted QliuilllI Deleted 5

Deleted or monthly

Deleted

Deleted January

Deleted 5

Deleted June

Deleted 0

Deleted 5

Deleted

Deleted The initial reconclltatlon penod lor Procurement Classes 1 2 and 3 wtll include the month of December 201411 lth recovery ocaimng during the three month penod June 1 2015 through August 31 2015 F

Deleted )-

Deleted

Deleted t

Deleted 11 rT41 Deleted II

Deleted II

Deleted

Deleted 1l

Deleted reconrunon

Deleted 11

Deleted 1l CN Deleted with the

Deleted of

Deleted September

Deleted 5

Deleted February 29

Deleted 6

Deleted shall be 11 Cr6f Deleted lt

Deleted Medium

Deleted 1

Deleted I Cm Deleted

Deleted

Deleted

Deleted and 3

Deleted

Deleted and 3

Deleted 11 rTef Deleted December middot-Deleted e Deleted s Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

PECO Exhibit ABC-3

Supplement No l to Tariff Electric Pa PUC No 5

XXX Revised Pago No 34 lPECO Energy Company SuperaedoeXX Roviaed Pago No 34

GENERATION SUPPLY ADJUSTMENT FOR PROCUREMENT CLASS 34 bull (C -LOADS GREATERTHAN 100KW

Applicebility June 1 201l_ tt1_ls_a_poundfj(s_m_e~ _h_lll_aPPY _o_a_ CJr lk_ng ceta(ll_bull ~C~ fornJ h_ _ltltgt_mp nY ~ t_1 cern~n_poundfs______ ~ greater than100kw _

Hourly Pricing Service Pricing The rates below shall include the cost ol procunng power to serve the delault service customers plus assocated administrative expenses incurred in acquiring power and gaining regulatory approval of any procurement strategy and plan The rates for the GSA 34 (C~ Hourly Pncmg Addermiddot shall beiJp_d_ld_qLJ_ate_rl~ o_r u1- ~eetnJrJ _D_C_flb_r_1_argt_d_M2 ~h_ 1_Cpoundlm_ergt_cg_ J_Jr_e J _2Q1J _ lf_tl_e___ _ balance of over(under) recovery gets too large due to billing lag the Company can Jle _a r ef o_rc[li llpn_tl_a_lll_m] igae Jh_ ~u_)s_equ~n _ _ _ - -impact The cost for this hourly service rate shall be as follows

Generation Supply Cost (GSC) =(C+R+AS+ACmiddotE)(1-T)+WCA where

[ Deleted 2

Deleted Second

Deleted

Deleted First

Deleted

Deletedsect

Deleted 5

Deleted 5

Deleted effective the first of each month

Deleted i

C The PJM day ahead hourly price multiplied by the customers usage in the hour summed up for all hours in the month

IPJMobullX usage (1-LL) PJMobull - PJM on day ahead hourly price Usage - Electricity used by an end use customer R = The PJM reliability pricing model (RPM) charge for month for the customer The RPM charge shall be the customers peak load contribution as established for PJM purposes multiplied by the current RPM monthly charge and the PJM established reserve margin adjustment PLC x (1 + RM) x PAPM x Bill Daye PLC = Peak load contribubon RM = Reserve margin adjustment per PJM PAPM = Capacity price per MW-day AC =Administrative Cost - This Includes an allocation of the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the plan and any other costs associated with designing and rmplementing a procurement plan divided by the total default service sales and then multiplied by the customers usage for the month Admrnistralive Costs also Includes any other costs incurred to implement retail market enhancements directed by the Commission in its Retail Market lnvesbgation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate AS x Uaage

A = Administrative cost S = Default service sales

AS= The cost on a $MWH basis of acqurnng ancillary seMces from PJM and of complying with the Alternative Energy Portfolio Standard multiplied by the customers usage for the month and divided by (1-LL) Congestion charges including the proceeds and costs from the exercise ofAuction Revenue Rrghts shall be included in ths component Ancillary services shall be those included in the Supply Master J Deleted 11Agreement as being the responslb1llty of the supplier

((PJMs x Usage1(1-LL) + AEPSSmsX Usage)

PJM = $MWH charged by PJM for ancillary services AEPS = Cost of complying wlth the alternabve energy portfolio standard s = Sales for which AEPS cost is incurred

If the supplier provides the ancillary services and AEPS cost then the customer shall be charged the suppliers rate for these services times usage and divided by (1-LL)

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges LL = Line loss factor as provided in the Companys Electnc Generation Supplier Coordination Tariff Rule 66 based upon the customers distnbution rate class adjusted to remove losses included in the PJM LMP T =The currently effecbve gross receipts lax rate 1

E - I O(U)S x usage where E = Overunder recovery as calculated in the reconciliabon 1

1

S bull Procurement class314 sales (C) 11 1

WC = $000034 kWh for working capital associated with power purchases 11

WCA = Individual customer sales x WC 11 I

Procedure The E factor shall be updated_el)11annu_ally ~n 2o_rj~n_cl_orgt_ ~t ti ~epoundQ_ri~Ji~tiQn__ ___________________ _(CJ 1 1 1The applicable above items are converted to the rates hsted below 1

II

Deleted lour

Deleted monthly

Deleted Monthly reconciliations shall be recovered over a one month period after the occurrence of a quarter

Deleted 000428

Deleted 00041 9

Deleted 000400

Tariff Ratbull GS PD HT EP Houri Pricin Adderbull dollarskWh $ XXXXX $ XXXXX $ XXXXX $ XXXXX __ ___ rlt

bull Includes admnistratve cost (AC) anallary service charge (AS) E factor (E) and working capital (WC)

~ ) Deno esfi_a_rig_e _______________________________________________________ _l

lampSUed~arch iz 201 6 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _________________E[epound1iyeIJf1 _O_fl --JI

-

Deleted 000400

Deleted (I)

Deleted I

Deleted Increase

Deleted January

Deleted 5

Deleted March

Deleted 6

PECO Exhibit ABC-3

Supplement No X to Tariff Electric PA PUC No 5

XXX Revised Page No 35 PECO Energy Company Supe[Jed- XX Page No 35

RECONCILIATION Applicability June 1 2017 this adjustment shall apply to all customers who received default service during the period (C) the cost of which Is betng reconClled Customers taking default service during the reconctltaton period that leave default service prior to the assessment of the collection of the over(under) adjustment shall still pay or receive credit for the over(under) acffU5tment through the rrigration provision The Company shall notify the Commission and parties to the Default Service Settlement 15 days in advance of the quarterlyJiling ii the Migration Provsion wtll 1e inpl_emented In the ding

This adjustment shall be calculated on a semiannual basis for Procurement Classes 1 2 and 34 Hourly The reconciliation penod will (C) Include the six month period beginning January 1and July 1 commencng with theJuly 1 20 throughpecember ~1 20 reconciliation perioqlor poundroc_urelent Cla1111bull s 1 end 2 and the oix_moflll_ penod Ju)lt 1 2Q17 throu91 Qeceber 31 201] or P_rocurement Class ~ Hourl11 There wtll be two mtal Iran bon reconc11ation periods tor Procurement Cla 34 Hourly They are the reconahabon penod ncludmg February 2017 and the reconc11tat1on penod including the lour month penod March 1 2017 through June 30 2017 respectively The recon~ilLalonllhall be seJa~ate or e_lcl pr~)8)t_cl~_A_ny_resullng 2v_er_prul)der_r_ClVY ~IIgta_ss_essed_o_ __ an equal cenls pe~lJl~WjlJh_p_r _a~~ Ip ll_~lg)amp_SJn_the reeyaritPl)CJlle_ll_g_OP~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I

For Procurement Classes 1 and 2 and for Procurement Class 34 Hourly alter the transition period any over(under)1ecovery shall be (CJ 1

collected after the occurrence of two months from the end of the_lt_OQOli~i~n_penpd- f~ the two_intal_ran 11 on relt9riclia_J~n P2dsect (9r_ 1 Procurement Class 34 flo_urjy a]y_oye_r(~1JdfrLr02v_ery hllP~ILelt_tej -Iertle-~_rr_e~e of lhe_nio~tl_s_and _10_Tl2n_hsect _ ___ _ _ respectively_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _

For Procurement Classas 1 2 and 34 Hourly recovery shall be over a six month penod commencing September 1 and March 1 (C)__ The initial six month period sMa_rct) 1 20 throu9h_A_ugust 31 20 lor Procureflnt ClassesJ 2 nd 2 and Y1 rpoundh_1 2Q1_1 _h_ough August 31 2018 for Procurement 34 Hourly For Procurement Class 34 Hourly the two initial trans1t1on recovery penods corresponding to the two in1t1al transition reconcltation penods are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 respectovely For pulJloses of this rider the reconciliation shall be calculated 45 days before the ellecbve date of recovery The over or under recovery shall be calculated using the formula below The calculation of the over(under) recovery shall be done separately ~ for the following procurement classes - Class 1 - Residential Class 2 - Small Campl~e t_o 100 k~ arid Class 31 ha~ g~I grea1er thaI __

1(yen) ~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1a 1 Reconciliation Fonmula 1i1a 1

EN = 20(U) + I 11 1bull 1

Migration Provision EM c (lO(U) + 1]S(1-GRT)(1-ALL)(1middotLL) Al

Where II E =Experienced over or under collection plus associated Interest 11 N = Procurement class II

M = Migration Rider O(U) = The monthly difference between revenue billed to the procurement dass and the cost of supply as described below in Cost AEPS Cost and Administrative Cost

Revenue= Amount billed to the tanfl rates applicable to the procurement dass including approveqReal nrne Price or other time - - - I sens1bve rates for the period betng reconciled through the GSA

Cost = The sum of the amounts paid to all of the full requirements suppliers providing the power for the penod being reconcmiddotledJhe spot Imarket purchases for the period being reconciled plus the cost of any other energy acquired for the penod being reconaled Cost shall include energy capacty and anallary services as well as the proceeds and costs of auction revenue nghts for Procurement Classes 1 anq (C 2 _A_ncj llayseryi~es _hall lndude any allocation by JM to_PECO default selV_ce associated wtth the taiLu _of a poundM_member to pay its _ill from PJM as well as those costs listed m the Supply Master Agreement as the responsibility of the seller

AEPS = The total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not induded in the Cost component above for the reconcllabon period for Procurement Classes and_2 nd_notl ncluded In the ancl_llary se~ces coflli)Onent ~1 for Procurement Class 34 Hourly Service Costs indude the amount paid for Alternabve Energy andor Altemabve Energy Credits (AECs) 1

purchased for compliance lth the Act the cost of adminstenng and conducting any procurement of Alternative Energy andor AEC s paymen9 to the AEC program admm1strator for its costs of admnistenng an alternative energy credits program payments to a third party for ts costs in operating an AEC regshy any charge levied by PECOs regional transmsS1on operator to ensure that altematve energy sources are reliable a credit for the sale of any AECs sold dunng the calailation penod and the cost of Alternative Compliance Payments that are deemed recoverable by the Commission plus any other direct or indirect cost of acquiring Alternative Energy ancVor AECs and complying with the AEPS statute

Admlnialnllive Cost= This Includes the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the strategy and any other costs asaociated lth designing and implementing a procurement plan including the cost ol the pricng forecast necessary for estimating cost recoverable under this tanfl Also included in this component shall be the cost to implement real Ume pnang or other time sensitive priang such as dynamic pricing that is required of the Company or approved n Its Act 129 liling Administrative Costs also includes other costs incurred to Implement retail market enhancements directed by the Commission in its Retrut Market Investigation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

Full Requirements Supply= A product purchased by the Company that 1ndudes a fixed pnce for all energy consumed The only cost added by the Company to the full requirements price is for gross receipts tax distribubon line losses and administrative cost

Ancillary Services= The following services In the PJM OATT- reacbve support frequency control operating reserves supplemental reserves imbalance charges PJM annual charges any PJM assessment associated with non-payment by members and any other load serving entity charges not ltsted here but contained in Exhibit D of the Supply Master Agreement Also included shall be the proceeds and costs from the exercise of aucoon revenue rights for Procurement Class 34 Hourly Servce (C)

(Cl Denotes Change _ _ _ ~ ~

lssuedllrpoundh_1Z ~0_16__ __ _____ ___ ~ == -= ==-__ ___~ -== ==-_____ _-bull-=-_ _E~ef ~eiun 1lt1 _ 4

Deleted QliuilllI Deleted 5

Deleted or monthly

Deleted

Deleted January

Deleted 5

Deleted June

Deleted 0

Deleted 5

Deleted

Deleted The initial reconclltatlon penod lor Procurement Classes 1 2 and 3 wtll include the month of December 201411 lth recovery ocaimng during the three month penod June 1 2015 through August 31 2015 F

Deleted )-

Deleted

Deleted t

Deleted 11 rT41 Deleted II

Deleted II

Deleted

Deleted 1l

Deleted reconrunon

Deleted 11

Deleted 1l CN Deleted with the

Deleted of

Deleted September

Deleted 5

Deleted February 29

Deleted 6

Deleted shall be 11 Cr6f Deleted lt

Deleted Medium

Deleted 1

Deleted I Cm Deleted

Deleted

Deleted

Deleted and 3

Deleted

Deleted and 3

Deleted 11 rTef Deleted December middot-Deleted e Deleted s Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

PECO Exhibit ABC-3

Supplement No X to Tariff Electric PA PUC No 5

XXX Revised Page No 35 PECO Energy Company Supe[Jed- XX Page No 35

RECONCILIATION Applicability June 1 2017 this adjustment shall apply to all customers who received default service during the period (C) the cost of which Is betng reconClled Customers taking default service during the reconctltaton period that leave default service prior to the assessment of the collection of the over(under) adjustment shall still pay or receive credit for the over(under) acffU5tment through the rrigration provision The Company shall notify the Commission and parties to the Default Service Settlement 15 days in advance of the quarterlyJiling ii the Migration Provsion wtll 1e inpl_emented In the ding

This adjustment shall be calculated on a semiannual basis for Procurement Classes 1 2 and 34 Hourly The reconciliation penod will (C) Include the six month period beginning January 1and July 1 commencng with theJuly 1 20 throughpecember ~1 20 reconciliation perioqlor poundroc_urelent Cla1111bull s 1 end 2 and the oix_moflll_ penod Ju)lt 1 2Q17 throu91 Qeceber 31 201] or P_rocurement Class ~ Hourl11 There wtll be two mtal Iran bon reconc11ation periods tor Procurement Cla 34 Hourly They are the reconahabon penod ncludmg February 2017 and the reconc11tat1on penod including the lour month penod March 1 2017 through June 30 2017 respectively The recon~ilLalonllhall be seJa~ate or e_lcl pr~)8)t_cl~_A_ny_resullng 2v_er_prul)der_r_ClVY ~IIgta_ss_essed_o_ __ an equal cenls pe~lJl~WjlJh_p_r _a~~ Ip ll_~lg)amp_SJn_the reeyaritPl)CJlle_ll_g_OP~ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

I

For Procurement Classes 1 and 2 and for Procurement Class 34 Hourly alter the transition period any over(under)1ecovery shall be (CJ 1

collected after the occurrence of two months from the end of the_lt_OQOli~i~n_penpd- f~ the two_intal_ran 11 on relt9riclia_J~n P2dsect (9r_ 1 Procurement Class 34 flo_urjy a]y_oye_r(~1JdfrLr02v_ery hllP~ILelt_tej -Iertle-~_rr_e~e of lhe_nio~tl_s_and _10_Tl2n_hsect _ ___ _ _ respectively_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ __ _

For Procurement Classas 1 2 and 34 Hourly recovery shall be over a six month penod commencing September 1 and March 1 (C)__ The initial six month period sMa_rct) 1 20 throu9h_A_ugust 31 20 lor Procureflnt ClassesJ 2 nd 2 and Y1 rpoundh_1 2Q1_1 _h_ough August 31 2018 for Procurement 34 Hourly For Procurement Class 34 Hourly the two initial trans1t1on recovery penods corresponding to the two in1t1al transition reconcltation penods are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 respectovely For pulJloses of this rider the reconciliation shall be calculated 45 days before the ellecbve date of recovery The over or under recovery shall be calculated using the formula below The calculation of the over(under) recovery shall be done separately ~ for the following procurement classes - Class 1 - Residential Class 2 - Small Campl~e t_o 100 k~ arid Class 31 ha~ g~I grea1er thaI __

1(yen) ~~ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11 1a 1 Reconciliation Fonmula 1i1a 1

EN = 20(U) + I 11 1bull 1

Migration Provision EM c (lO(U) + 1]S(1-GRT)(1-ALL)(1middotLL) Al

Where II E =Experienced over or under collection plus associated Interest 11 N = Procurement class II

M = Migration Rider O(U) = The monthly difference between revenue billed to the procurement dass and the cost of supply as described below in Cost AEPS Cost and Administrative Cost

Revenue= Amount billed to the tanfl rates applicable to the procurement dass including approveqReal nrne Price or other time - - - I sens1bve rates for the period betng reconciled through the GSA

Cost = The sum of the amounts paid to all of the full requirements suppliers providing the power for the penod being reconcmiddotledJhe spot Imarket purchases for the period being reconciled plus the cost of any other energy acquired for the penod being reconaled Cost shall include energy capacty and anallary services as well as the proceeds and costs of auction revenue nghts for Procurement Classes 1 anq (C 2 _A_ncj llayseryi~es _hall lndude any allocation by JM to_PECO default selV_ce associated wtth the taiLu _of a poundM_member to pay its _ill from PJM as well as those costs listed m the Supply Master Agreement as the responsibility of the seller

AEPS = The total cost of complying with the Alternative Energy Portfolio Standards Act (AEPS or the Acr) not induded in the Cost component above for the reconcllabon period for Procurement Classes and_2 nd_notl ncluded In the ancl_llary se~ces coflli)Onent ~1 for Procurement Class 34 Hourly Service Costs indude the amount paid for Alternabve Energy andor Altemabve Energy Credits (AECs) 1

purchased for compliance lth the Act the cost of adminstenng and conducting any procurement of Alternative Energy andor AEC s paymen9 to the AEC program admm1strator for its costs of admnistenng an alternative energy credits program payments to a third party for ts costs in operating an AEC regshy any charge levied by PECOs regional transmsS1on operator to ensure that altematve energy sources are reliable a credit for the sale of any AECs sold dunng the calailation penod and the cost of Alternative Compliance Payments that are deemed recoverable by the Commission plus any other direct or indirect cost of acquiring Alternative Energy ancVor AECs and complying with the AEPS statute

Admlnialnllive Cost= This Includes the cost of the Independent Evaluator consultants providing guidance on the development of the procurement strategy legal fees incurred gaining approval of the strategy and any other costs asaociated lth designing and implementing a procurement plan including the cost ol the pricng forecast necessary for estimating cost recoverable under this tanfl Also included in this component shall be the cost to implement real Ume pnang or other time sensitive priang such as dynamic pricing that is required of the Company or approved n Its Act 129 liling Administrative Costs also includes other costs incurred to Implement retail market enhancements directed by the Commission in its Retrut Market Investigation at Docket No 1-2011-2237952 or any other applicable docket that are not recovered from EGSs or through another rate

Full Requirements Supply= A product purchased by the Company that 1ndudes a fixed pnce for all energy consumed The only cost added by the Company to the full requirements price is for gross receipts tax distribubon line losses and administrative cost

Ancillary Services= The following services In the PJM OATT- reacbve support frequency control operating reserves supplemental reserves imbalance charges PJM annual charges any PJM assessment associated with non-payment by members and any other load serving entity charges not ltsted here but contained in Exhibit D of the Supply Master Agreement Also included shall be the proceeds and costs from the exercise of aucoon revenue rights for Procurement Class 34 Hourly Servce (C)

(Cl Denotes Change _ _ _ ~ ~

lssuedllrpoundh_1Z ~0_16__ __ _____ ___ ~ == -= ==-__ ___~ -== ==-_____ _-bull-=-_ _E~ef ~eiun 1lt1 _ 4

Deleted QliuilllI Deleted 5

Deleted or monthly

Deleted

Deleted January

Deleted 5

Deleted June

Deleted 0

Deleted 5

Deleted

Deleted The initial reconclltatlon penod lor Procurement Classes 1 2 and 3 wtll include the month of December 201411 lth recovery ocaimng during the three month penod June 1 2015 through August 31 2015 F

Deleted )-

Deleted

Deleted t

Deleted 11 rT41 Deleted II

Deleted II

Deleted

Deleted 1l

Deleted reconrunon

Deleted 11

Deleted 1l CN Deleted with the

Deleted of

Deleted September

Deleted 5

Deleted February 29

Deleted 6

Deleted shall be 11 Cr6f Deleted lt

Deleted Medium

Deleted 1

Deleted I Cm Deleted

Deleted

Deleted

Deleted and 3

Deleted

Deleted and 3

Deleted 11 rTef Deleted December middot-Deleted e Deleted s Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

PECO Exhibit ABC-3

~upple_monJ N~ X to Tariff Eloctric PA PUC No 5

XXX Revised Pogo No 36-PECO Energ Company upcraedeeXX Pago No 36

RECQNCILJATIQN (CONTINUED) I

Auction Revenue Rights (ARR) = Allocated annually by PJM to Firm transmission customers the ARRs allow a Company to select rights to specific transmission paths in order to avoid congestion charges

Capacity= The amount charged to PECO by PJM for capacity for its default service load under the reliability pricing model (RPM)

I = interest on the over or under collection where a rate of 8 Is used on over-collection and 6 on under-coilections

S= Estimated delault service retail sales in kWh lor the period the cost of which is being reconciled

ALL = The average line losses in a procurement dass as a percent of generation

LL The average line losses for a particular rate (eg HT PDGS) as provided in the Electric Generation Supplier Coordination Tariff rule 66

GRT = The current gross receipts tax rate

Procurement Claoa middot Set of customers for which the company has a common procurement plan

Procedural Schedule The Company shall file the calculation ol the overunder collection for the penod being reconciled and the proposed adjustment to the GSA 45 days belore the effective date as described below The overunder collection adjustment for Procurement Classes 1and_2 _ tCL and for Procurement Class 34 Hourly aher Iha two 1mt1al transItIon periodsshall be effective no earlier than the first day of the mcnth such that the commencement of recovery shall lag by two months For the two n t1al transition penods for Procurement Class 34 Hourly -

~hepverunder collection adjustmentshall beiffective no earlier than the first day of the month such that the commencement of recovery - -shall lag bYcttl_ree~nh~ _n~ I__WQ ry_l0_1t1s0 re~ecllvell Forpoundrsc~r_eme_111__q uses__2_and 34 Hourly the GSA Will ~e efepoundtiy e_JunJ j ___ September 1 December 1 and March 1 commencng June 1 20 with overunder coilect1011recovery occurring over the six month penod 1

J1egi~ni_ng September 1 and MarpoundhJ _Jor ~ro_cl_lemJnJ gl_ss yen4fOtrly_h~ ~~ 1~1l_al_trl_Si110_11 te oye_Y_periods for ove_rtn~e poundO[ef ll_9n_ 11 7 1 are June 1 2017 through August 31 2017 and September 1 2017 through February 28 2018 The data provided In the reconciliation shall

be audited on an annual basis by lhe P_a~l_C_BJrJ a~ p f_diJ s~ _______________ _ _________ _____ _____ ~ 7 Ill

11 11

11 11 n

I

I (C) Denotes Change

Jlssued~rpoundh_ 20 ___ ___________ __ _______ _ _ __ _ _ _______ __ _ _____Ee~ye_line 110Jl _~

Deleted 11 ( I middot------------Section Break (Continuous-------------middot

Deleted Page Break Supplement No

Deleted

Deleted 11

Deleted Supercedea

Deleted Original

Deleted

Deleted i

Deleted i

Deleted T

Deleted initial

Deleted for Procurement Classes 1 2 and 3 that includes the mcnth of December 2014 and s effective 11 June 1 2015 will be fifed 45 days before the effective date The overunder collection adjustment for Procurement Class 4 Hourly

Deleted 11

Deleted

Deleted one quarter

Deleted i

Deleted

Deleted 5

Deleted 11

Deleted

Deleted GSA 4 Hourly rates shall be etfectve the hrsl of each month Wllh overunder collecton recovery occurring

over a month

Deleted 11 Deleted

Deleted 11

Deleted 11 Deleted December

Deleted 86

Deleted 5

Deleted

Deleted January

Deleted 6

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM

PECO Exhibit ABC-3

IPage 33 [1] Deleted Author 2172016 104100 AM

GS GSA(3) I $007377

IPage 34 [2] Deleted Author 217 2016104500 AM

I PD GSA(3) $007250

IPage 34 [3] Deleted Author 2172016 104500 AM

I HT GSA(3) $006954

IPage 36 [4] Deleted Author 3 42016 101800 AM

adjustment shall be calculated on a monthly basis with recovery commencing after the occurrence of a quarter

IPage 36 [S] Deleted Author 342016 102800 AM

from the end of the reconciliation period

IPage 36 [6] Deleted Author 342016 103900 AM shall be

monthly

IPage 36 [7] Deleted Author 342016 104300 AM

to 500 kW and Class 4 Large CampI over 500 kW

IPage 36 [8] Deleted Author 342016 104900 AM