Advocacy for customers reflects the Exelon Promise, a commitment to keep bills as low as possible amid rising energy costs
Exelon today announced that approximately $13 million will be returned to natural gas customers in the form of refunds and lower long-term costs, following the successful resolution of a multi-year federal pipeline rate case that would have increased natural gas delivery costs for customers. Exelon's advocacy also helped avoid more than $12 million annually in additional costs that would have otherwise been passed on to customers. Customers of three Exelon operating companies will benefit from the $13 million in immediate savings, including $8.9 million for PECO, $3.6 million for Delmarva Power, and $500,000 for BGE.
Advocating for Customers as Costs Rise
The win for customers comes at a time when energy supply costs are rising and reflects Exelon's continued efforts to advocate on behalf of customers through the Exelon Promise, keeping bills as low as possible.
"We launched The Exelon Promise because we share our customers' frustration with rising energy costs. While we don't control the supply side driving those increases, we are focused on every opportunity to reduce the costs we can control," said Calvin Butler, President and CEO of Exelon. "By challenging this rate increase, we secured meaningful savings on the delivery side – returning money to customers, avoiding new charges, and helping keep bills as manageable as possible for families and small businesses."
The savings stem from Exelon's participation in a proceeding before the Federal Energy Regulatory Commission (FERC) involving a proposed rate increase from Transcontinental Gas Pipeline Company (Transco), a major natural gas supplier in the Mid-Atlantic. Exelon companies intervened and challenged the proposal, ultimately helping to secure a settlement that reduced costs, returned over-collection, and prevented new surcharges.
Meaningful Benefits for Customers
The settlement delivers multiple, lasting benefits for Exelon customers:
- Refunds returned to customers: $13 million in refunds for over-collections will be returned to customers as a credit on their retail energy bills, expected to appear later this year, reducing future charges.
- Lower long-term costs: By pushing back on higher pipeline rates, Exelon helped reduce ongoing costs, helping keep energy bills more manageable over time.
- Elimination of new surcharges: A proposed "Modernization Surcharge Tracker" was eliminated, protecting customers from additional, less transparent pipeline surcharges in future years.
- Stronger regulatory oversight: By intervening and challenging the filing, Exelon helped ensure the ultimate rates approved by FERC were transparent and fair.
- Rate stability: The settlement prevents Transco from seeking further rate increases before August 31, 2027.
The Exelon Promise is our commitment to deliver immediate relief, strengthen customer protections, and pursue solutions that keep energy reliable and costs as low as possible. For more information visit: https://www.exeloncorp.com/company/exelon-promise.
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Khanya Brann
khanya.brann@exeloncorp.com