An Exelon Company - National Energy Marketers Association · PECO 2301 Market Street, S15 Philadelphia, PA 19103 ... J. E. Simms, Director, Bureau Of Investigation and ... DE 19805

Richard G. Webster, Jr. Telephone 215.8414000 ext 5777 An Exelon CompanyVice President Fax 215.841.6208

Regulatory Policy and Strategy www.peco.com

[email protected]

PECO

2301 Market Street, S15

Philadelphia, PA 19103

September 28, 2012

Rosemary Chiavetta, SecretaryPennsylvania Public Utility CommissionCommonwealth Keystone Building400 North StreetHarrisburg, PA 17105-3265

Re: PECO Energy Company — Gas Division — Natural Gas Distribution Companiesand Promotion of Competitive Retail Markets — 1308(a) Voluntary Changes inRates — Petition - Docket No. L-2008-20691 14

Dear Secretary Chiavetta:

Enclosed for filing is PECO Energy Company’s (“PECO”) Section 1308(a) tariff filing andthe information required in support of the filing of rate changes under 52 Pa. Code§ 53.52(a). PECO is making this Section 1308(a) filing in accordance with the FinalRevised Rulemaking Order at Docket No. L-2008-20691 14 effective April 14, 2012 and theCommission’s Secretarial Letter issued on May 25, 2012.

PECO requests that the Commission allow it to include these proposed changes in itsPGC 1307(f) submission effective March 1, 2013 and filed upon one day’s notice onFebruary 28, 2013.

In the tariff filing, PECO has identified and removed natural gas procurement costs frombase rates and proposes to recover them through a separate surcharge that would beincluded in the Company’s Purchased Gas Cost (“PGC”). The unbundled gasprocurement costs will be included in PECO’s Price to Compare and recovered on arevenue neutral basis.

The filing consists of the following:

1. Section 1308(a) Petition changes in rates;2. Attachment I — Removal of Gas Procurement costs from distribution rates

and the calculation of the Gas Procurement Charge (“GPC1’);3. Attachment 2 — Draft of PECO Energy Company’s Gas Tariff reflecting the

removal of gas procurement costs from distribution rates, the creation of aGPC and a revised mechanism reflecting the new GPC; and

4. Attachment 3 — The information furnished with the filing of rate changes under52 Pa.Code § 53.52(a).

Rosemary Chiavetta, SecretarySeptember 28, 2012Page 2

All correspondence, pleadings and other documents should be sent to the attention of:

Michael S. Swerling, EsquireAssistant General CounselExelon Business Services Company2301 Market Street S23-3Philadelphia, PA 19101-8699

Please acknowledge receipt of the foregoing on the enclosed copy of this letter.

Sincerely,

Richard G. Webster, Jr.Vice PresidentRegulatory Policy & Strategy

Enclosures

cc: C. Walker-Davis, Director, Office of Special AssistantsP. Diskin, Director, Bureau of Technical Utility ServicesM. C. Lesney, Director, Bureau of AuditsJ. E. Simms, Director, Bureau Of Investigation and EnforcementOffice of Consumer AdvocateOffice of Small Business Advocate

BEFORE THEPENNSYLVANIA PUBLIC UTILITY COMMISSION

PETITION OF PECO ENERGYCOMPANY - GAS DIVISION -

PURSUANT TO 66 PA.C.S. § 1308(A) FORAPPROVAL OF ITS PROPOSED TARIFFREVISIONS

I hereby certify that I am this day serving copies of the foregoing document upon the

persons and in the manner indicated below which service satisfies the requirements of 52 Pa.

Code § 1.54 (relating to service by a participant).

VIA FIRST CLASS MAIL

TITAN GAS. LLC3355 WEST ALABAMASUITE 1170.HOUSTON, TX 77098

RICHARD UNGERUGI ENERGY SERVICES1 MERIDIAN BOULEVARDWYOMISSING, PA 19610

COMMERCEP.O. BOX 2210BUFFALO, NY 14240-2210

SHIPLEY ENERGY550 EAST KiNG STREETP.O. BOX 946

YORK, PA 17405

PLANET ENERGY CORP.10 KINGSBRIDGE GARDEN CIRCLESUITE 800MISSISSAUGA, ON L5R 3K6

AMERIGREEN ENERGY1862 CHARTER LANE, SUITE 101,LANCASTER, PA 17601

ENERGETIX INC50 METHODIST HILL DRIVESUITE 1500ROCHESTER, NY 14623

GLACIALP.O. BOX 1057SANDWICH, MA 02563

Docket No. L-2008-20691 14

CERTIFICATE OF SERVICE

WASHINGTON GAS ENERGY SERVICE13865 SUNRISE VALLEY DRiVESUITE 100HERNDON, VA 20171

CINDY FARLEYHESSONE HESS PLAZAWOODBRIDGE, NJ 07095

SCOTT MCCORRYMACK SERVICE GROUPP.O. BOX 557BERWYN, PA 19312

MAJOR ENERGY SERVICES, LLC100 DUTCH HILL ROAD- SUITE31OORANGEBURG, NY 10962

VALERIE ROSSREGULATORY MANAGERGATEWAY ENERGY SERVICESCORPORATION400 RELLA BLVD., SUITE 300MONTEBELLO, NY 10901

CENTER POINT ENERGY1011 CENTRE ROADWILMINGTON, DE 19805

WILLIAM R. DETERSOUTH JERSEY ENERGY,OPEN FLOW ENERGYP.O. DRAWERJDUBOIS, PA 15801

IGS ENERGYP.O. BOX 9060DUBLIN, OH 43017

CONSTELLATION NEW ENERGYINC#2 PENN CENTERSUITE 2221500 JFK BLVDPHILADELPHIA, PA 19102

PALMCO ENERGY PA, LLC2704 COMMERCE DRIVE, SUITE BHARRISBURG, PA 17110

RHOADS ENERGY624 SOUTH PRINCE STREETLANCASTER, PA 17603

US GAS & ELECTRIC290 N.W. 165TH STREET, PH5NORTH MIAMI BEACH, FL 33169

VIRIDIAN ENERGY64 NORTH MAIN STREETNORWALK, CT 06854

PPL ENERGY PLUSTWO NORTH 9TH STREETALLENTOWN, PA 18101

IDT ENERGYP.O. BOX 400JAMESTOWN, NY 14702

KIMBERLY MCCLOS KEYSPRAGUE ENERGY2 INTERNATIONAL DRIVE,LEGAL ASSISTANT SUITE 200PORTSMOUTH, Nfl 03801

2

DOMINION RETAIL METRO MEDIAP.O. BOX 298 6 INDUSTRIAL WAY WESTPITTSBURGH, PA 15230 EATONTOWN, NJ 07724

?Richard G. Webster, Jr.

Dated: September 28, 2012

3

BEFORE THEPENNSYLVANIA PUBLIC UTILITY COMMISSION

PETITION OF PECO ENERGYCOMPANY - GAS DIVISION -

PURSUANT TO 66 PA.C.S. § 1308(A) FOR : Docket No. L-2008-2069114APPROVAL OF ITS PROPOSED TARIFFREVISIONS

PETITION OF PECO ENERGY COMPANY

BACKGROUND

On March 27, 2009, the Pennsylvania Public Utility Commission (‘Commission”) issued

a Proposed Rulemaking Order to promote retail competition for the sale of natural gas supply

service by proposing to change certain rights, duties and obligations of natural gas distribution

companies (“NGDC”) and natural gas suppliers (“NGS”). See Natural Gas Distribution

Companies and the Promotion of Competitive Retail Markets, Docket No. L-2008-20691 14

(issued on March 27, 2009). PECO Energy Company (“PECO” or “the Company”) filed

comments to the Proposed Rulemaking Order on August 25, 2009 that expressed its views on

how the recommended changes would impact true and sustainable competition.

After receiving and reviewing the comments filed by interested parties, the Commission

initiated an Advance Notice of Final Rulemaking Order (“ANOFR”) on August 10, 2010 to

establish rules regarding: 1) the formulation of a Price to Compare (“PTC”); 2) the

implementation of Purchase of Receivables (‘POR”) programs; and 3) the mandatory release,

transfer and assignment of capacity for suppliers. PECO filed comments to the ANOFR on

September 9, 2010 in which it provided its view on how the PTC should be calculated and also

requested flexibility for POR program development.

The ANOFR was submitted to the Independent Regulatory Review Commission

(“IRRC”) on June 26, 2009. After IRRC issued its comments to the ANOFR, the Commission

issued its Revised Final Rulemaking Order (“Revised Final Order”) on February 23, 2011 in

which it adopted a new set of regulations (52 Pa.Code § 62.221-62.225) that reformulate the

PTC, adopt permanent rules for POR programs, and provide for the non-discriminatory release,

assignment and transfer of capacity to NGSs.

Pursuant to the Commission’s Orders entered in Docket No. L-2008-20691 14, the May

25, 2012 Secretarial Letter (which set the date of September 30, 2012 for PECO’s tariff filing),

and 52 Pa.Code § 62.223(b), PECO hereby submits its 1308(a) filing to remove natural gas

procurement costs from base rates and recover them through separate surcharge mechanisms on

a revenue neutral basis.

INTRODUCTION

Pursuant to 52 Pa.Code § 5.41, PECO hereby petitions the Commission to accept its

proposed changes to its Natural Gas Service Tariff contained herein and filed in accordance with

66 Pa.C.S. § 1308(a) of the Public Utility Code. The Commission required that all NGDCs make

this tariff filing pursuant to 52 Pa.Code § 62.223(b), which states:

An NGDC shall file a tariff change under 66 Pa.C.S. § 1308(a) (relating tovoluntary changes in rates) to identify the natural gas procurement costs includedin its base rate and shall propose tariff revisions designed to remove those costsfrom its base rate and to recover those annual costs as part of the PTC (the GPCportion) on a revenue neutral basis.

According to section 62.223(b), NGDCs shall make 1308(a) tariff changes to remove

natural gas procurement costs and the cost of uncollectibles applicable to natural gas

procurement from base rates and recover them through two surcharge mechanisms - the Gas

2

Procurement Charge or GPC and the Merchant Function Charge or MFC - on a revenue neutral

basis. The GPC reflects natural gas procurement costs that are to be removed from base rates

and recovered from default service customers through a separate surcharge. The MFC represents

the cost of uncollectibles that are to be removed from base rates and also recovered from default

service customers through a separate surcharge. These surcharge mechanisms will be included

in the PTC so that they can be recovered solely from default service customers. The

Commission is also requiring that NGDCs include their natural gas supply charges as determined

in their 1307(f) proceedings in the PTC.

PECO’s proposed changes are aimed at complying with the Commission’s newly adopted

requirements set forth in 52 Pa.Code § 62.221-62.225. As such, PECO proposes to remove its

procurement costs from base rates and reformulate its PTC by having it include:

1) Natural gas supply charges (“NGSC”), including associated over and under collectionsfrom the Gas Cost Adjustment Charge (“GCA”) determined in PECO’s March 1, 2013quarterly and subsequent 1307(f) filings;

2) Gas procurement costs contained in a Gas Procurement Charge (“GPC”), after thosecosts have been unbundled in PECO’s March 1, 2013 quarterly and subsequent 1307(f)filings; and

3) Uncollectible accounts expenses contained in a Merchant Function Charge (“MFC”),after those costs have been unbundled, by no later than April 14, 2015.

Also contained in this filing are PECO’s plans to recover its costs associated with: 1)

revising its existing POR discount to reflect the actual uncollectible rate and incremental costs

associated with the development, implementation and administration of the POR program in

accordance with 52 Pa.Code § 62.224(a)(5); and 2) changes to its operations and systems

necessary to implement revisions to the PTC.

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In addition, PECO explains that it does not need to make any changes regarding the non

discriminatory release, assignment and transfer of capacity to NGSs because its Gas Supplier

Coordination Tariff already accomplishes this directive.

PROPOSAL

I. REFORMULATING THE PTC

PECO’s proposal to unbundle natural gas procurement costs from its distribution base

rates and transfer them into a newly reformulated PTC is made in accordance with 52 Pa.Code

§ 62.223(a)(1)-(3), which state that the reformulated PTC shall consist of the:

1) NGSC (which includes the GCA charge determined in PECO’s 1307(f) proceedings);

2) GPC (which consists of PECO’s natural gas procurement costs); and

3) MFC (which consists of PECO’s applicable gas uncollectibles).

A. The NGSC

The first element of the PTC is the NGSC, which is defined by the Commission as costs:

Determined in the NGDC’s Section 1307(f) proceeding, including thereconciliation for over and under collections. (See 52 Pa.Code § 62.223(a)(1)).

Accordingly, each NGDC is required to include in their PTC the natural gas supply

charges and associated over and under collections from their 1307(f) Purchased Gas Cost

(“PGC”) filings.

4

The NGSC will consist of the PGC Commodity Charge and the PGC Gas Cost

Adjustment Charge determined in PECO’s March 1, 2013 quarterly and subsequent 1307(f)

filings.

B. The GPC

The second element of the PTC is the GPC, which is defined by the Commission, as:

An element of the PTC, expressed on a per Mcf or Dth basis, that reflects anNGDC’s natural gas procurement costs and that is removed from the NGDC’sbase rate and recovered through a separate charge. (See 52 Pa.Code § 62.222).

Accordingly, each NGDC is required to file a 1308(a) tariff change to identify and

remove natural gas procurement costs from distribution base rates and recover them as part of a

separate charge on a revenue neutral basis. (See 52 Pa.Code § 62.223(b)). The GPC is a by-

passable charge. It will be charged to default service customers in order to recover procurement

costs after their removal from distribution base rates. To facilitate this process, the Commission

has identified the following procurement cost components that comprise the GPC:

Natural gas supply service, acquisition and management costs, including naturalgas supply bidding, contracting, hedging, credit, risk management costs andworking capital. (See 52 Pa.Code § 62.223(b)(1)(i).

Administrative, legal, regulatory and general expenses related to those naturalgas procurement activities, excluding those related to the administration of firmstorage and transportation capacity. (See 52 Pa.Code § 62.223(b)(1)(ii).

Upon review of the above-listed components, PECO has identified and quantified the

following natural gas procurement cost categories for inclusion in the PTC.2 These categories

1 Beginning with PECO’ s March 1, 2013 quarterly 1307(f) filing, the PGC Commodity Charge will include thevalue for the GPC as shown in PECO Attachment 2, page 34.

2 Please note that the figures contained herein for the GPC components are based upon PECO’s 2010 Gas Base RateCase proceeding approved by the Commission on December 16, 2010 at Docket No, R-2010-2161592.

5

are: Labor and Benefits, Outside Legal Costs, IT-Related Gas Procurement Costs and Working

Capital. Consequently, PECO proposes to remove the associated costs from distribution base

rates and recover them as a separate GPC charge.

1. Labor and Benefits:

Labor and Benefits Costs represent the costs associated with wages, pensions, benefits,

and associated taxes for procurement support functions performed in the following areas: Gas

Supply and Transportation, Finance and Accounting, Internal Legal, Regulatory, Risk, and

Management Support. These costs total $737,000 as shown in PECO Attachment 1, pages 1 and

2.

2. Outside Legal Costs:

Outside Legal Costs represent costs associated with external legal support for PECO’s

2010 Purchased Gas Cost proceeding and total $49,000 as shown in PECO Attachment 1, page 1.

3. Working Capital Costs:

Working Capital Costs consist of the costs associated with the time lag between the

receipt of gas revenues and the incurrence of costs for applicable gas supply. It also includes

prepayments associated with software maintenance. These costs total $1,144,000 as shown in

PECO Attachment 1, pages 1 and 4.

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4. IT-Related Gas Procurement Costs:

IT-Related Gas Procurement Costs shall consist of the portion of costs associated with

PECO’s GasStar System3 related to gas procurement activities for default service customers.

PECO will exclude the portion of costs associated with storage and transportation capacity

activities in accordance with 52 Pa.Code § 62.223(b)(1)(ii). The IT-Related Procurement Costs

that will be included in the GPC total $57,000, as shown in PECO Attachment 1, pages 1 and 3.

5. Total GPC Costs:

In total, PECO’s procurement costs equal $1,987,000. PECO proposes to shift these

costs from distribution base rates to the GPC on a revenue neutral basis. See PECO Attachment

1, page 1 for the calculation of the proposed reduction in distribution base rates of $O.0347 per

Mcf and the accompanying GPC of $O.045 1 per Mcf.4 In accordance with 52 Pa.Code §

62.223(b)(2) and (e), the costs for the GPC are non-reconcilable and will not be adjusted until

PECO’s next general base rate case proceeding.

C. The MFC

The third element of the PTC is the MFC, which is defined by the Commission as:

An element of the PTC, expressed on a per Mcf or Dth basis, that reflects the costof uncollectibles associated with an NGDC’s natural gas costs. (See 52 Pa.Code §62.222.)

PECO’s GasStar information system functions as the sub-ledger, transaction manager, scheduler and reportgenerator for all costs and quantities related to the Company’s natural gas purchases.

The calculation of the reduction in distribution rates is based on sales volumes of 57.2 million Mcf from PECO’s2010 base rate case while the calculation of the GPC is based on projected default service volumes of 44.1 millionMcf.

7

Accordingly, each NGDC is required to file a MFC rider to remove uncollectibles

associated with natural gas procurement from distribution base rates and recover them as part of

a separate charge. Similar to the GPC, the MFC will be a separate by-passable charge

recoverable from default service customers on a revenue neutral basis.

To facilitate the changes needed to comply with the Commission’s directive and because

PECO has an existing Gas POR program5with no defined term length, PECO proposes to begin

implementing the MFC by April 14, 2015 as permitted by 52 Pa.Code § 62.224(c)(3), which

states:

If the NGDC has an existing Commission-approved POR program without adefined term length, the NGDC shall update its POR program by April 14, 2015,to be consistent with this section.

Paragraph G of PECO’s 2010 Joint Petition for Settlement ofRate Investigation (at

Docket No. R-2010-216 1592, which was approved by the Commission’s December 16, 2010

Opinion and Order6)states how PECO will currently unbundle its uncollectibles:

PECO will implement its Gas Purchase of Receivables (“POR”) programconsistent with the outcome of the proceeding at Docket No. P-2009-2 143588 andthe final outcome of the Commission’s rulemaking proceeding at Docket No. L2008-2069114. Should the Commission determine in either of those proceedingsthat unbundled uncollectibles and a Merchant Function Charge (“MFC”) arerequired, PECO’s $4.4 million in POR uncollectibles will be unbundled,converted to a percent-of-revenue by class (GR — 1.07%; GC — 0.30%) andrecovered through an MFC and PECO will apply a corresponding discount to thereceivables purchased from natural gas suppliers. (Opinion and Order at 10 and13).

See the Commission’s Order entered November 10, 2010 at Docket No. P-2009-2 143588 approving PECO’s GasPOR program.

See the Commission’s Opinion and Order in Docket Nos. R-2010-2161592, C-2010-2171283, C-2010-217335, C-2010-2177431, C-2010-2185444 and C-2010-2172542, which was adopted by the Commission on December 16,2010.

8

Based on the foregoing, PECO will make a filing with the Commission in advance of the

April 14, 2015 deadline proposing relevant updates to its current Gas POR program.

II. RATE CALCULATIONS

The GPC was calculated by taking the gas procurement costs of $1,987,000 and dividing

this figure by the projected default service volumes of 44,080,473 Mcfs for the period March 1,

2013 through February 28, 2014 for Rates GR, CAP, GC, OL, L, MV-F and the Excess Off-Peak

Use Rider. The resulting rate for the GPC is $0.045 1 per Mcf. The calculation is shown in

PECO Attachment 1, page 1. Because the GPC is not subject to reconciliation, PECO’ s gas

procurement costs identified in the GPC will remain constant until its next distribution base rate

proceeding. However, sales volumes and the subsequent GPC will change in conjunction with

PGC rate adjustments.

The associated distribution base rate reduction of $0.0347 per Mcf for the gas

procurement costs was determined by taking the gas procurement costs of $1,987,000 and

dividing this figure by the sales volumes of 57,265,937 Mcfs reflected in the Company’s 2010

Gas Base Rate Case proceeding for Rates GR, CAP, GC, OL, L, MV-F and the Excess Off-Peak

Use Rider. The calculation is shown in PECO Attachment 1, page 1. This base rate reduction is

applied to Rates GR, CAP, GC, OL, L, MV-F and the Excess Off-Peak Use Rider.

The total gas procurement costs of $1,987,000 from PECO Attachment No. 1, page 1,

which are removed from distribution base rates, are the same costs as those included in the

calculation of the GPC. As a result, revenue neutrality is preserved.

PECO is required to make tariff revisions that reflect the removal of the natural gas

procurement costs described above from base rates and recover them through a separate charge

9

on a revenue neutral basis. Therefore, PECO includes, as PECO Attachment 2, a copy of its

proposed tariff supplement reflecting the required changes. In addition, PECO submits, as

PECO Attachment 3, its responses to the Commission’s filing requirements contained in 52

Pa.Code § 53.52.

III. GAS POR DISCOUNT

PECO’s current Commission-approved Gas POR program permits it to:

(1) purchase receivables with zero discount (regarding the recovery ofuncollectibles) and without recourse by PECO to those NGSs for receivables thatPECO cannot collect; and

(2) to defer the recovery of the information technology (IT) costs and othercosts of implementing the Gas POR Program from all Low VolumeTransportation (“LVT”) customers until a specific recovery mechanism isapproved in PECO’s next base rate case (post-2010).

PECO’s Gas POR program also utilizes a one-percent (1%) discount on purchased

receivables to recover the costs associated with system changes necessary to implement the

program in the following manner:

A one-percent (1%) discount on purchased NGS receivables is currently utilizedto reduce the balance of the program’s implementation costs until the conclusionof PECO’s first distribution rate case following the implementation of the GasPOR. If at the time PECO files its first distribution base rate case followingimplementation of the program any implementation costs remain unrecovered,PECO will propose a mechanism to recover the remaining implementation costsas a charge to Low Volume Transportation (“LVT”) customers (both shoppingand non-shopping alike) and/or as a charge to NGSs serving LVT customers inthe form of a future discount on purchased receivables (which shall be at least 1%until such remaining costs are recovered).. .(Citation omitted). (See Opinion andOrder at 14).

PECO proposes to revise the above-described Gas POR discount provisions to comply

with the Revised Final Order in accordance with 52 Pa. Code § 62.224(a)(5) - which now

10

requires implementation of a POR discount to reflect the actual uncollectible rate and

incremental costs associated with the development, implementation and administration of

modifications to the program - by April 14, 2015, as permitted by 52 Pa.Code § 62.224(c)(3). As

such, PECO will make a filing with the Commission in advance of the April 14 deadline

proposing relevant updates to its current Gas POR program.

IV. COST RECOVERY

A. Recovery of Gas POR Implementation Costs

PECO requests recovery of the incremental costs associated with the development,

implementation and administration of the Gas POR program described in the section above.

PECO has not yet quantified those costs. However, once determined, PECO requests that it be

allowed to recover them in accordance with the Commission’s Revised Final Order.

PECO understands that its Gas POR program implementation costs will also include IT

modifications required to track POR program costs and supplier collections experience in

accordance with 52 Pa.Code § 62.224(a)(1 1), which states:

To ensure that the POR discount rate accurately reflects its program costs, an NGDCshall track its POR program costs and NGS basic service collections experience.

B. Competition-Related Implementation Costs

Implementing the proposed PTC revisions will require changes to PECO’s operations and

systems. This includes IT modifications to PECO’s billing system and bill format. PECO has

not yet determined precisely what those costs will be. However, once determined, PECO

requests that it be allowed to recover them in accordance with the Commission’s Revised Final

Order, which recognized that NGDC’s should be allowed to seek recovery of costs associated

11

with changes to their operations and systems as a result of this ruling. (See Revised Final Order

at 50.) Consistent with the Commissions determination, PECO requests that it be allowed to

defer such costs on their books, once determined, and seek recovery in its next gas base rate case.

V. CAPACITY RELEASE

PECO is not proposing any tariff changes regarding the non-discriminatory release,

assignment and transfer of capacity to NGSs because PECO’ s Gas Supplier Coordination Tariff

already accomplishes this directive.

VI. REOUEST FOR APPROVAL

Based upon the foregoing, PECO respectfully requests that the Commission approve its

plan to:

1. Implement the proposed distribution rate reductions, the GPC and the applicabletariff pages contained herein;

2. Include these proposed changes in its PGC 1307(f) submission effective March 1,2013 and filed upon one day’s notice (on February 28, 2013) consistent with theCommission’s previous 1307(f) rulings;

3. Implement an MFC and a revised POR discount by April 14, 2015 inconformance with Section 62.224(c)(3);

4. Recover applicable incremental costs associated with the development,implementation and administration of the Gas POR program; and

5. Defer and seek recovery of competition related implementation costs in a futuregas base rate proceeding.

12

CONCLUSION

PECO respectfully requests that the Commission approve its proposed tariff revisions.

Respectfully submitted,

I4ichael S. Sii o. 94748)Exelon Business - vices Company, LLC2301 Market StreetP.O. Box 8699Philadelphia, PA 19101-8699Phone: 215.841.4220Fax: [email protected]

September 28, 2012 For PECO Energy Company

13

PECO ATTACHMENT I

PECO-Gas Operations PECO Attachment No. 1

Gas Procurement Charge (GPC) Calculation Page 1

Effective March 1, 2013(ThousandS)

LABOR AND BENEFITSGas Supply $529 Attachment 1 Page 2Financial and Accounting Support $18 Attachment 1, Page 2Internal Legal Support $48 Attachment 1, Page 2Regulatory Support $48 Attachment 1, Page 2Risk Management $18 Attachment 1, Page 2Management Support Attachment 1, Page 2

Total Labor and Benefits $737 Attachment 1 Page 2

Outside Legal Costs $49 Company Records

GasStar Related Costs $57 Attachment 1 Page 3

Working Capital $1J44 Attachment 1 Page 4

TOTAL COSTS $1,987

Distribution Base Rate Case Mcf Sales Volumes 57,265,937 Docket No. R-2010-2161592, Compliance Filing 12/21/10

Distribution Charge Rate Reduction $!mcf $00347

Default Customers’ Mcf Supply Service Sales Volumes 44,080,473 Company Records, March 2013 to February 2014

GPC Rate $Imcf $00451

PECO-Gas Operations PECO Attachment No.1

Procurement Labor and Benefits Costs Page 2

(Thousand$)

Procurement RateHours $IHour Cost

Gas Supply 5,460.0 $96.82 $529Financial and Accounting Support 191.0 $96.82 $18Internal Legal Support 500.4 $96.82 $48Regulatory Support 498.0 $96.82 $48Risk Management 182.0 $96.82 $18Management Support 785.0 $96.82

Total Labor and Benefits Costs 7,616.4 $737


Annual Expenses for GasStar Page 3

(Thousand$)

Annual Expenses $70 Company Records

Allocated Commodity Portion 81.00% Company Records

Allocated to GPC $57


Working Capital Page 4

(ThousandS)

Revenue Lag 46.50 days Docket No. R-2010-2161592, PECO Exh. RLO-4, Schedule C-4, Page 2

Purchased Gas Costs Lag days Docket No. R-2010-2161592, PECO Exh. RLO-4, Schedule C-4. Page2

NetLag Days 7.11 days

Commodity and Capacity Fuel Costs $505,430 Dermed From Docket No. R-201 0-21 61 592, PECO Eeh. RLO-4, Schedule C-4, Page 2

Commodity Portion 86.46% Company Records

Applicable Fuel Costs $436,995

Average Cost per Day $1,197

Net Lag Days 7.11 days

Commodity and GCA Related WorkingCapital Requirement $8,511

Prepayments-Software Maintenance Docket No. R-2010-2161592. PECO Exh. RLO-4. Schedule C-4. Page 10

Working Capital Requirement $8,521

Revenue Requirement Factor 13.43% From Docket No. R-201 0-21 61 592, PECO Exh. RLO-4. Schedute B-S. Page 1,

see below (a)Working Capital Revenue Requirement $1,144

(a)Capital Weighted After-Tax

Structure Return Return Return

Debt 45.19% 5.81% 2.63% 1.54%Preferred 1.63% 4.38% 0.07% 0.07%Common 53.18% 11.75% 25% 25%

100.00% 8.95% 7.86%

Tax Rate 41.494%

Revenue Requirement Factor 13.43%

-D m C-)

0 -I -I C-) m z -I

PECO ENERGY COMPANY

GAS SERVICE TARIFF

COMPANY OFFICE LOCA11ON

2301 Market Street

Philadelphia, Pennsylvania 19101

For List of Communities Served, See Page 2.

Issued: Xxxxxxxx Effective: Xxxxxxxx

ISSUED BY: C. L. Adams - President & CEOPECO Energy Distribution Company

2301 MARKET STREETPHILADELPHIA, PA. 19101

NOTICE.

Supplement No. xxxGas-Pa. P.U.C. No. 2

Supplement No. xxx ToGas-Pa. P.U.C. No. 2

One Hundred Nineteenth Revised Page No. IPECO Energy Company Superseding One Hundred Eighteenth Revised Page No. I

TABLE OF CONTENTSIndex of Communities Served 22How to Use Loose-Leaf Tariff 3Definition of Terms and Explanation of Abbreviations 44

RULES AND REGULATIONS:1. The Gas Service Tariff 72

2. Service Specifications 83. Customers Installation 94

4. Application for Service 105. Credit ii6. Service-Supply Facilities 127. Extensions .1 28. Rights-of-Way 139. Introduction of Service 13

10. Company Equipment 1411. Tariff Options on Applications for Service 152

12. Service Continuity 161

13. Customers Use of Service 2114. Measurement 2115. Tests 2216. Payment Terms 2317. Termination by the Company 2518. Unfulfilled Contracts 2523

19. Cancellation by Customer 2620. General 2621. Gas Choice Program Enrollment and/or Switching 2722. Usage Data 2723. Affiliated Marketer Standards of Conduct 2824. Requests for Energy Efficiency Information 312

25. Creditworthiness of Natural Gas Supplier (NGS) Serving High Volume Transportation Customers 312

STATE TAX ADJUSTMENT CLAUSE 3217

UNIVERSAL SERVICE COST RECOVERY MECHANISM 3310

SALES SERVICE COSTS - (“SSC”) Section 1307(f) 3449

GAS PROCUREMENT CHARGE 36ABALANCING SERVICE COSTS (“BSC”) 374X

MIGRATION RIDER 391

TRANSITION SURCHARGE - SECTION 1307 (a) 4012

CONSUMER EDUCATION CHARGE (CEC) 40A2RATES:

Rate GR General Service - Residential 4116

Rate CAP Customer Assistance Program 42Rate GC General Service - Commercial and Industrial 4310

Rate OL Outdoor Lighting 446

Rate L Large High Load Factor Service 4513

Rate MV-F Motor Vehicle Service-Firm 4610

Rate MV-I Motor Vehicle Service-Interruptible 474

Rate IS Interruptible Service 49Rate TCS Temperature Controlled Service 51Gas Transportation Service - General Terms and Conditions 536

Rate TS-I Gas Transportation Service - Interruptible 586

Rate TS-F Gas Transportation Service-Firm 596

Rate CGS - City Gate Sales Service 6025Rate NGS — Negotiated Gas Service 61A1, 61B1

RIDERS:Applicability Index of Riders 622

Casualty Rider 63Construction Rider 63Excess Off-Peak Use Rider 64Receivership Rider 65Temporary Service Rider .65Customer Assistance Program (CAP) Rider 6&, 671

Issued Xxxxxxxx Effective Xxxxxxxx


One Hundred Twentieth Revised Page No. IAPECO Energy Company Superseding One Hundred Nineteenth Revised Page No. IA

LIST OF CHANGES MADE BY THIS SUPPLEMENT

SALES SERVICE COSTS (SSC) 49th Revised Page No. 34Revised to reflect the addition of the Gas Procurement Charge in accordance with the Final Order at Docket No. L-2008-20691 14.

GAS PROCUREMENT CHARGE — Original Page No. 36ANew charge called the Gas Procurement Charge is added in accordance with the Final Order at Docket No. L-2008-20691 14.

RATE GR — 16th Revised Page No. 41The Variable Distribution Charge is decreased due to the implementation of the Gas Procurement Charge in accordance with theFinal Order at Docket No. L-2008-20691 14.

RATE GC- 10th Revised Page No. 43The Variable Distribution Charges are decreased due to the implementation of the Gas Procurement Charge in accordance with theFinal Order at Docket No. L-2008-20691 14.

RATE OL — 6th Revised Page No. 44The Distribution Charges are decreased due to the implementation of the Gas Procurement Charge in accordance with the FinalOrder at Docket No. L-2008-20691 14.

RATE L — 13th Revised Page No. 45The Variable Distribution Charges are decreased due to the implementation of the Gas Procurement Charge in accordance with theFinal Order at Docket No. L-2008-20691 14.

RATE MV-F — 10th Revised Page No. 46The Variable Distribution Charge is decreased due to the implementation of the Gas Procurement Charge in accordance with theFinal Order at Docket No. L-2008-20691 14.

EXCESS OFF PEAK USE RIDER — 8th Revised Page No. 64The Variable Distribution Charge is decreased due to the implementation of the Gas Procurement Charge in accordance with theFinal Order at Docket No. L-2008-20691 14.



Forty Ninth Revised Page No. 34PECO Energy Company Superseding Forty Eighth Revised Page No. 34

SALES SERVICE COSTS (SSC) - Section 1307(1)

PROVISIONS FOR RECOVERY OF GAS COSTS RELATED TO SALES SERVICE

Rates for all Sales Service gas supplied under Rate Schedules GR, CAP, GC, OL, L and MV-F, and under the ExcessOff-Peak Use Rider of this Tariff shall include the Commodity Charge (CC) at $x.xxxx per Mcf (1,000 cubic feet) for recovery ofgas costs related to Sales Service, calculated in the manner set forth below, pursuant to Section 1307(f) of the Public Utility Codeas well as procurement costs as reflected in the Gas Procurement Charge (“GPC”). In addition, the Gas Cost Adjustment (C)Charge (GCA) in the amount of $x.xxxx per Mcf will be applicable to customers served under the above mentioned RateSchedules. Such rates for Sales Service gas shall be increased or decreased, from time to time, as provided by Section 1307(f)of the Public Utility Code and the Commission’s regulations, to reflect changes in the level of recovery of gas costs related toSales Service.

COMPUTATION OF CC AND GCA PER MCFThe CC and GCA, per Mcf, shall be computed to the nearest one-hundredth cent (0.010) in accordance with the formulasset forth below:

1 +GPC (C)CC= (5) X (1 -T) ;and

GCA= (5) X (1-T)

For March 1, June 1 and September 1 quarterly updates, CC is revised to:

CC = (CCI + 0+ x 1 + GPC (C)51 S2 (1-T)

The CC and GCA so computed, shall be applicable to Customers receiving Sales Service pursuant to the rate schedulesidentified above. The CC and GCA, per Mcf, will vary, if appropriate, based upon annual filings by the Company pursuant toSection 1307(f) of the Public Utility Code and such supplemental filings as may be required or be appropriate under Section1307(f) or the Commission’s regulations adopted pursuant thereto.

In computing the Charges, per Mcf, pursuant to the formulas above, the following definitions shall apply:

“CC” - Purchased Gas Costs determined to the nearest one-hundredth cent (0.010) to be charged for each Mcf of-SalesService gas supplied under Rate Schedules GR, CAP, GC, CL, L and MV-F, and under the Excess Off-Peak Use Rider ofthis Tariff.

“C” - Cost in dollars: (a) for all types of purchased gas, project the commodity and all non-storage interstate pipelinecosts for each purchase (adjusted for net current gas stored) for the projected period when rates will be in effect; plus (b) thecost of gas provided from storage and LNG facilities, less (c) all reservation and commodity revenue, received from RateCGS sales and (d) the new monthly cash-out result determined pursuant to Rule 10.11.3, or the successor thereto, of theGas Choice Supplier Coordination Tariff

“Cl” - defined as the difference between the current projection of “C” and the projection of “C” used to establish therates effective December 1 for the period starting with the month of the effective date of the quarterly rate change throughthe end of the PGC period.

“CC1” — defined as the Commodity Charge rate effective December 1 of the current PGC period.“0”— defined as the difference between the current net over/under collections and the associated projected net

over/under collections from the applicable PGC rate calculation, as defined by Commodity Charge revenues less associatedgas costs, from December 1 of the current PGC year through the end of the month before the applicable quarterly ratechange.

GCA - the “E” factor component of the CC, representing the net overcollection or undercollection of Purchased GasCosts. Applicable to Sales Service and determined to the nearest one-hundredth cent (0.010) for service provided underRate Schedules GR, GC, CAP, CL, L, MV-F, and the Excess Off-Peak Use Rider of this Tariff.

- the net (overcollection) or undercollection of Purchased Gas Costs applicable to the CC.The net overcollection or undercollection shall be determined for the most recent period permitted under law, which shall

begin with the month following the last month which was included in the previous overcollection or undercollection calculationreflected in rates. The annual filing date shall be the date specified by the Commission for the Company’s Section 1307(f) tarifffiling.

Supplier refunds received after July 1, 2001 associated with Commodity Charges will be included in the calculation of“E” with interest added at the annual rate of six percent (6%) beginning with the month such refund is received by theCompany.

“GPC” — Gas Procurement Charge determined to the nearest one-hundredth cent (0.010) to be charged for each Mcf of (C)Sales Service gas supplied under Rates Schedules GR, CAP, GC, CL, L, MV-F and under the Excess Off Peak Use Riderof this Tariff.

(C) Denotes Change



PECO Energy Company Original Page No. 36A

GAS PROCUREMENT CHARGE

PROVISIONS FOR RECOVERY OF GAS PROCUREMENT CHARGESRates for all Sales Service gas supplied under Rate Schedule GR, CAP, GC, CL, L and MV-F and under the ExcessOff-Peak Use Rider of this Tariff shall include the Gas Procurement Charge (“GPC”) at $00451 per Mcf (1,000 cubicfeet) for recovery of gas procurement costs related to Sales Service, calculated in the manner set forth below andpursuant to the Final Order at Docket No. L-2008-20691 14. The GPC will be included in the Company’s CommodityCharge (“CC”) and the Price to Compare (PTC”).

COMPUTATION OF GAS PROCUREMENT CHARGEThe GPC shall include gas procurement costs incurred by the Company on behalf of its Sales Service customers.The GPC shall include the following costs:

1. Natural gas supply service, acquisition and management costs, including natural gas supply bidding,contracting, hedging, credit, risk management costs and working capital.

2. Administrative, legal, regulatory and general expenses related to those natural gas procurement activities,excluding those related to the administration of firm storage and transportation capacity.

The GPC shall be computed as follows:

GPC=GPCC/S x 1l(1-T)

“GPCC” — applicable gas procurement costs as defined in Items 1 and 2 above.

“5” — defined as projected twelve month Mcf sales billed to customers receiving Sales Service under Rate SchedulesGR, CAP, GC, CL, L, MV-F and Excess Off-Peak Use Rider.

— the portion of any applicable state gross receipts tax rate recovered through base rates, expressed as adecimal. The tax rate, if any, shall be the one in effect when the computation is made.

The costs for the GPC shall remain in effect until reviewed and updated in each base rate case filed by theCompany. The calculation of the GPC shall be updated in conjunction with updates in the Company’s CommodityCharge (“CC”) portion of its Sales Service Costs (“SSC”). The GPC shall not be subject to reconciliation for anyprior period over or under collections.

PRICE TO COMPAREThe Price to Compare (“PTC”) is composed of the Commodity Charge (“CC”), the Gas Cost Adjustment (“GCA”) andthe Gas Procurement Charge (“GPC”). The Commodity Charge includes the Gas Procurement Charge. The PTCwill change whenever any components of the PTC changes. The current PTC is detailed below:

COMPONENT RATECommodity Charge excluding GPC $x.xxxx per McfGas Cost Adjustment $y.yyyy per McfGas Procurement Charge $00451 per Mcf

Price to Compare $z.zzzz per Mcf



Sixteenth Revised Page No. 41PECO Energy Company Superseding Fifteenth Revised Page No. 41

RATE GR - GENERAL SERVICE -RESIDENTIAL

AVAILABILITY.

Service to the dwelling of a single private family or to a multiple dwelling unit building consisting of two tofive dwelling units for domestic requirements. Resale of gas and/or service provided by the Company underthis rate is only allowed for those locations being served through a single meter prior to January 6, 1980.

MONTHLY RATE TABLE.

FIXED DISTRIBUTION CHARGE: $11.75 per month

VARIABLE DISTRIBUTION CHARGE: $37259 per Mcf. (D)

MINIMUM CHARGE: The minimum charge per month will be the Fixed Distribution Charge.

STATE TA)( ADJUSTMENT CLAUSE, TRANSITION SURCHARGE, COMMODITY CHARGE (“CC”) - (if customer receives (C)Sales Service), GAS COST ADJUSTMENT CHARGE (“GCA”), GAS PROCUREMENT CHARGE (“GPC”), BALANCINGSERVICE COST (‘BSC”), MIGRATION RIDER apply to this rate. The Consumer Education Charge is incorporated in theVariable Distribution Charge. The Universal Service Fund Charge is incorporated in the Variable Distribution Charge. TheGas Procurement Charge is incorporated in the Commodity Charge.

CONTROLLED LOW PRESSURE SERVICE AND 2 PSIG DELIVERY.

For those Customers served from medium or high pressure mains, low pressure delivery of gas at 12.2 inches of watercolumn or 2 PSIG will be provided upon request in lieu of the normal low pressure delivery. For these Customers multipliersof 1.03 will be applied to all meter readings for 12.2 inches of water column delivery and 1.14 for 2 psig delivery to recognizethe additional volume of gas delivered.

BUDGET BILLING.At the option of the Customer, budget billing is available in accordance with the provisions of Rule 16.5.

RULES AND REGULATIONS.The Company’s rules and regulations in effect from time to time where not inconsistent with any specific provisions

hereof are a part of this rate schedule.

TERM OF CONTRACT.The initial term for any contract shall be at least one year.

PAYMENT TERMS.Standard.

(D) Denotes Decrease(C) Denotes Change

Issued Xxxxxxxx Effective Xixxxxxx


Tenth Revised Page No. 43PECO Energy Company Superseding Ninth Revised Page No. 43

RATE GC - GENERAL SERVICE - COMMERCIAL AND INDUSTRIAL

AVAILABILITY.Service for use in commercial and/or industrial applications, with the right reserved to restrict its use as boiler fuel and for

other non-critical use.

MONTHLY RATE TABLE.

FIXED DISTRIBUTION CHARGE: $28.55 per month

VARIABLE DISTRIBUTION CHARGE: $37435 per Mcf for all or any part of the first 200 Mcf (0)$26040 per Mcf for the additional use (D)

MINIMUM CHARGE: The minimum charge per month will be the Fixed Distribution Charge.

STATE TAX ADJUSTMENT CLAUSE, TRANSITION SURCHARGE, COMMODITY CHARGE (‘CC”) - (if customer receives (C)Sales Service), GAS COST ADJUSTMENT CHARGE (‘GCA”), GAS PROCUREMENT CHARGE (‘GPC”), BALANCINGSERVICE COST (“BSC”) AND MIGRATION RIDER apply to this rate. The Consumer Education Charge is incorporated inthe Variable Distribution Charge. The Gas Procurement Charge is incorporated in the Commodity Charge.

CONTROLLED LOW PRESSURE SERVICE AND 2 PSIG DELIVERY.

For those Customers served from medium or high pressure mains, low pressure delivery of gas at 12.2inches of water column or 2 PSIG will be provided upon request in lieu of the normal low pressure delivery. For theseCustomers multipliers of 1.03 will be applied to all meter readings for 12.2 inches of water column delivery and 1.14 for2 psig delivery to recognize the additional volume of gas delivered.

BUDGET BILLING.At the option of a Customer, budget billing is available in accordance with the provisions of Rule 16.5

RULES AND REGULATIONS.The Companys rules and regulations in effect from time to time where not inconsistent with any specific provisions


TERM OF CONTRACT.The initial contract term shall be at least one year.





Sixth Revised Page No. 44PECO Energy Company Superseding Fifth Revised Page No. 44

RATE OL - OUTDOOR LIGHTING SERVICE

AVAILABILITY.Service for outdoor lighting by Company-approved lighting devices of the sizes hereinafter specified, where the

consumption is not registered on a meter.

MONTHLY RATE TABLE.

Distribution Charges

Nominal When Not in Conjunction When in ConjunctionManufacturer’s Rated Mcf Rating With Service Under With Service UnderInput to Lighting Devices Per Month Other Gas Rates Other Gas Rates

1,999 Btu/Hr.or less 1.5 Mcf $5.4663 $27184 (D)2,000 Btu/Hr.to 2,499 Btu/Hr 1.7 Mcf $63592 $36319 (D)2,500 Btu/Hr.to 2,999 BtulHr. 2.1 Mcf $71377 $4.4001 (D)3,000 Btu/Hr.to 3,499 Btu/Hr. 2.4 Mcf $79684 $5.2408 (0)

STATE TAX ADJUSTMENT CLAUSE, TRANSITION SURCHARGE, COMMODITY CHARGE (“CC”) — (if customer receives (C)Sales Service), GAS COST ADJUSTMENT CHARGE (“GCA”), GAS PROCUREMENT CHARGE (“GPC”), BALANCINGSERVICE COST (“BSC”) AND MIGRATION RIDER apply to this rate. The Consumer Education Charge is incorporated inthe Distribution Charge. The Gas Procurement Charge is incorporated in the Commodity Charge.

INSTALLATIONS.The Customer shall install, own and maintain the lighting devices and all tubing from the Companys service-supply

pipe to the lighting devices.

FINAL CONNECTION.The final connection of any lighting devices or tubing to the supply system shall be made by or under the

supervision of a representative of the Company and the costs of such connections shall be borne by the Customer.

BUDGET BILLING.At the option of the Customer, budget billing is available in accordance with the provisions of Rule 16.5

RULES AND REGULATIONS.The Company’s rules and regulations in effect from time to time where not inconsistent with any specific provisions




(0) Denotes Decrease(C) Denotes Change



Thirteenth Revised Page No. 45PECO Energy Company Superseding Twelfth Revised Page No. 45

RATE L - LARGE HIGH LOAD FACTOR SERVICEAVAILABILITY.

Large volume high load factor service for use in commercial and/or industrial applications, with the right reserved torestrict its use as a boiler fuel and for other non-critical use. This service shall be under a contract specifying in Mcf, themaximum daily quantity (MDQ) of natural gas to be supplied on a seasonal basis. The winter period MDQ may not exceedthe summer period MDQ. Deliveries shall be as nearly as practicable at uniform hourly rates of flow.

MONTHLY RATE TABLE.FIXED DISTRIBUTION CHARGE: $260.00 per monthVARIABLE DISTRIBUTION CHARGE: $53808 per Mcf for the first 15 days’ use of billing demand. (D)

$1 .6325 per Mcf for the additional use. (D)

STATE TAX ADJUSTMENT CLAUSE, TRANSITION SURCHARGE, COMMODITY CHARGE (“CC”) — (if customer receives Sales (C)Service), GAS COST ADJUSTMENT CHARGE (“GCA”), GAS PROCUREMENT CHARGE (“GPC”), BALANCING SERVICE COST(“BSC”) AND MIGRATION RIDER apply to this rate. The Consumer Education Charge is incorporated in the Variable DistributionCharge. The Gas Procurement Charge is incorporated in the Commodity Charge.

SEASONAL PERIODS DEFINED.The summer period is defined as the calendar months of April through November, inclusive. The winter period is defined

as the calendar months of December, January, February and March.

DETERMINATION OF BILLING DEMAND.The billing demand shall be computed each month to the nearest Mcf and shall be the highest measured quantity of gas,

corrected to standard conditions, taken in a 24-hour interval. The summer period billing demand for all Customers will neverbe less than 80% of the summer period MDQ nor less than 100 Mcf per day.

MINIMUM CHARGE.The monthly minimum charge shall be the Fixed Distribution Charge, plus the Variable Distribution Charge price applied

to the Mcf that would result from 15 days’ use of the Customer’s billing demand for the month.

MEASUREMENT.The quantities of gas used shall be determined from the Company’s meters, corrected to standard conditions, namely 60’

Fahrenheit temperature and 30 inches of mercury barometric pressure.

UNAUTHORIZED OVERRUN.Any quantity of gas taken for this service on any day of the month in excess of the MDQ specified in the contract for this

service shall constitute unauthorized overrun volume for such day, except when such excess results from fluctuations inday-to-day deliveries hereunder determined by the Company to be normal and in accordance with good operating practices.The sum of all such unauthorized volume in a month shall be billed at the rate of $25.00 for each Mcf of gas so taken andthe resulting amount shall be paid in addition to the charges specified in this rate.

RULES AND REGULATIONS.The Company’s rules and regulations in effect from time to time where not inconsistent with any specific provisions hereof

are a part of this rate schedule.

MDQ DETERMINATION.Each Customer shall review the contract annually and shall supply the Company written notification by August 1 of the

Customer’s requested MDQ(s) for the coming contract year. The MDQ requested shall be subject to reduction by theCompany for either or both of the seasonal periods in light of available gas supplies, winter deliverability constraints, or forother good reason before the contract becomes effective. Any reduction made by the Company below the prior year’sMDQ(s) shall be limited to the Customer’s boiler fuel and other non-critical use.

The Company may, with the consent of the Customer, increase the existing winter MDQ up to the level of the contractedsummer MDQ at such time during the winter period when, in the judgment of the Company, sufficient quantities of gas areavailable for the balance of the contract year.






Tenth Revised Page No. 46PECO Energy Company Superseding Ninth Revised Page No. 46

RATE MV-F - MOTOR VEHICLE SERVICE-FIRM

AVAILABILITY.Firm motor vehicle service is available to Customers using natural gas exclusively as fuel for motor vehicles.

MONTHLY RATE TABLE.

FIXED DISTRIBUTION CHARGE: $34.00 per month.ADDITIONAL FIXED DISTRIBUTION CHARGE: If the Customer contracts with the Company for the installation andmaintenance of compressor equipment to deliver gas at the necessary pressure for vehicle use, there will be an additionalCustomer Charge as specified in the Customer’s contract.

VARIABLE DISTRIBUTION CHARGE: $09770 per Mcf (0)

ADDITIONAL VARIABLE DISTRIBUTION CHARGE: If the Customer contracts with the Company for the purchase ofcompressed gas at a Company-owned refueling location, there will be a compression and refueling charge of $2.66 per Mcfadded for each Mcf of gas supplied.

MINIMUM CHARGE: The minimum charge per month shall be the Fixed Distribution Charge.

STATE TA)( ADJUSTMENT CLAUSE, TRANSITION SURCHARGE, COMMODITY CHARGE (“CC”) — (if customer receives (C)Sales Service), GAS COST ADJUSTMENT CHARGE (“GCA”), BALANCING SERVICE COST (“BSC”), GASPROCUREMENT CHARGE (“GPC”) AND MIGRATION RIDER and any applicable fuel taxes apply to this rate. TheConsumer Education Charge is incorporated in the Variable Distribution Charge. The Gas Procurement Charge isincorporated in the Commodity Charge.

RULES AND REGULATIONS.The Company’s rules and regulations in effect from time to time where not inconsistent with any specific provisions hereof

are a part of this rate schedule.






Eighth Revised Page No. 64PECO Enerv Company Superseding Seventh Revised Page No. 64

EXCESS OFF-PEAK USE RIDER(This rider is in process of elimination and its application is restrictedto those installations and those customers who were served under

its provisions as of June 2, 1975.)

APPLICABILITY. To contracts for service under Rate GC, provided that:

1. All gas used under the contract to which this rider is applied is delivered to and metered at a single point.

2. The premises are used for purposes other than those of a private residence.

ON-PEAK MONTHS are the 5 months beginning November 16 and ending April 15.

OFF-PEAK MONTHS are the 7 months beginning April 16 and ending November 15.

ON-PEAK USE is the greatest monthly consumption of gas during any billing month within the preceding on-peak period.

EXCESS GAS is the gas used in any off-peak month in excess of on-peak use. In each off-peak month the Customer shallpay for gas used up to the on-peak use at the rate specified in the contract to which this rider is applied, and for all excessgas used at the applicable Commodity Charge (CC”) (if customer receives Sales Service) Gas Cost Adjustment Charge(“GCA”), Balancing Service Cost (“BSC”) and Migration Rider; provided, however, that the Customer must pay, during theseven-month off-peak period, for at least 50 Mcf at the rate for excess gas. During the initial year of service under this rider,the requirement of a minimum payment for 50 Mcf of excess gas will be proportionately reduced for Customers beginningservice after April 15.

VARIABLE DISTRIBUTION CHARGE PRICE: $1 .5470 per Mcf. (D)

The STATE TAX ADJUSTMENT CLAUSE, TRANSITION SURCHARGE, COMMODITY CHARGE (‘CC”) - (if customer (C)receives Sales Service), GAS COST ADJUSTMENT CHARGE (‘GCA”), GAS PROCUREMENT CHARGE (“GPC”),BALANCING SERVICE COST (“BSC”) AND MIGRATION RIDER apply to this rider. The Consumer Education Charge isincorporated in the Variable Distribution Charge. The Gas Procurement Charge is incorporated in the Commodity Charge.

When the time a new Customer begins to take service hereunder precludes the determination of the on-peak use fromrecords or experience, it shall be estimated by the Company.



PECO ATTACHMENT 3

PECO - Attachment 3

PECO Energy CompanyProposed Changes to Gas Service Tariff No. 2

Information furnished with the filing of rate changes under 52 Pa.Code § 53.52(a).

(a)(1) The specific reason for each change.

PECO Energy Company (“PECO”) is making this tariff filing in accordance with theCommission’s Revised Final Rulemaking Order entered on April 14, 2012 at Docket No.L-2008-20691 14 — Natural Gas Distribution Companies and Promotion of CompetitiveRetail Markets and the May 25, 2012 Secretarial Letter.

(a)(2) The total number of customers served by the utility.

As of August 31, 2012, PECO served 494,555 gas customers.

(a)(3) A calculation of the number of customers, by tariff subdivision, whose billswill be affected by the change.

General Service Residential 452,363General Service Commercial & 41, 172IndustrialOutdoor Lighting Service 14Large High Load Factor Service 2Motor Vehicle Service — Firm 6Total 493,557

(a)(4) The effect of the change on the utility’s customers.

The customers listed in section (a)(3) above will see a decrease in their distributionrates due to the removal of natural gas procurement costs and an increase in rates dueto the gas procurement charge in accordance with 52 Pa.Code § 62.223(b).

(a)(5) The effect, whether direct or indirect, of the proposed change on theutility’s revenue and expenses.

The unbundled gas procurement costs that are being removed from distribution rateswill be included in PECO’s Price to Compare as the Gas Procurement Charge andrecovered on a revenue neutral basis and thus have no direct or indirect effect onrevenues or expenses.

PECO - Attachment 3

(a)(6) The effect of the change on the service rendered by the utility.

None.

(a)(7) A list of factors considered by the utility.

The changes are being made in response to the Commission’s directives set forth inDocket No. L-2008-20691 14 — Natural Gas Distribution Companies and Promotion ofCompetitive Retail Markets.

(a)(8) Studies undertaken by the utility in order to draft its proposed change.

None.

(a)(9) Customer polls taken and other documents, which indicate customeracceptance and desire for the proposed change.

None.

(a)(1O) Plans the utility has for introducing or implementing the changes withrespect to its customers.

The Company will notify customers of the approved changes via a bill insert.

(a)(11) F.C.C., or FERC or Commission orders or rulings applicable to the filings.

The Commission Orders issued in Docket No. L-2008-2069114 are applicable to thisfiling.

2

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An Exelon Company - National Energy Marketers Association · PECO 2301 Market Street, S15 Philadelphia, PA 19103 ... J. E. Simms, Director, Bureau Of Investigation and ... DE 19805