Change in Commodity Price Marks First Increase in More Than a Year PHILADELPHIA, Feb. 28 /PRNewswire-FirstCall/ -- PECO will increase its overall price for natural gas service, effective by March 1, by a total of seven percent or 9.265 cents per 100 cubic feet (ccf), marking the company's first natural gas price increase in more than a year. PECO serves 474,000 suburban customers in southeastern Pennsylvania. The current purchased gas cost rate will increase from 97 cents per ccf of natural gas to $1.06 per ccf, so the average monthly residential bill based on 100 ccf of usage will increase from roughly $131 to $141. PECO's natural gas rates are made up of two main parts - the delivery and service charges and the commodity charge: -- The delivery and service charges remains essentially unchanged since 1988 and remain among the lowest in Pennsylvania. Those charges reflect PECO's natural gas operating and maintenance costs, mainly the cost of moving gas on its distribution system to individual users. -- The gas commodity charge (or purchased gas cost rate) is the part of the bill that will increase on March 1st and reflects only the cost PECO pays to secure natural gas on behalf of customers without any markup. This charge represents about 80 percent of the total rate and is a "direct pass through" of the company's purchased gas costs. Reed Horting, PECO vice president, Gas, said the company has under- collected from customers for its actual gas supply costs during the past three months and now must increase the rate in order to recover this deficit. Unlike gasoline or oil dealers, Pennsylvania gas utilities can only adjust its regulated rates every quarter to reflect their cost of buying gas on the wholesale market. "PECO makes a particular effort to keep rates as low as possible during the winter months when it matters most to customers," said Horting. "We purchase our supply in a variety ways as part of a portfolio approach in an effort to keep the cost to customers as stable as possible." Even with the increase, PECO's purchased gas cost rate is still almost $2.25 per mcf less than it was just a year ago when rates reflected the sharply increased wholesale prices following Hurricanes Katrina and Rita in the Gulf of Mexico. In addition, this increase follows four successive decreases of 6.5%, 8.9%, 13.4% and 4.5% in the last four quarters. Assistance is Available The company offers assistance for low- and fixed-income customers. Applications are now available for Low-Income Home Energy Assistance Program (LIHEAP) grants to help offset heating costs or overcome a problem with the house heater. LIHEAP grants are funded by the federal government and administered by the state. The program's eligibility is based on family size and income. PECO also offers discounted electric and gas rates under its CAP program, which has the largest enrollment of any utility in the state. Customers interested in learning more about LIHEAP or CAP assistance can call 1-800-34- HELP-4. To manage winter heating costs, PECO encourages consumers to consider its budget billing plan and increase energy efficiency. Budget billing can eliminate the seasonal fluctuations and make monthly bills predictable by dividing customers annual energy costs into stable monthly payments. Weatherize: Visit PECO's Web Store The store, is located at http://www.energyfederation.org/peco, offers homeowners valuable energy saving information, weatherization tools, educational materials, safety products, discounts for PECO customers to purchase energy efficient products, such as air cleaners, humidifiers, space heaters, programmable thermostats, fans, lights and electricity meters. The energy saving kit could save customers between $125 and $250 per year, and is available at http://www.peco.com/programs/save for $25 plus shipping and handling. The kit includes energy saving information, kitchen and bathroom sink and shower aerators, weather stripping, polyethylene tape, and switch and outlet insulators. The company does not profit from any of the online sales, but is offering its customers another way to save money this winter by reducing their home energy usage. Exelon Corporation is one of the nation's largest electric utilities with more than $15 billion in annual revenues. The company has one of the industry's largest portfolios of electricity generation capacity, with a nationwide reach and strong positions in the Midwest and Mid-Atlantic. Exelon distributes electricity to approximately 5.4 million customers in northern Illinois and Pennsylvania and natural gas to approximately 480,000 customers in the Philadelphia area. Exelon is headquartered in Chicago and trades on the NYSE under the ticker EXC. Contact: Cameron Kline PECO, An Exelon Company 2301 Market Street, S14-1 Philadelphia, PA 19103 215-841-5555 DATASOURCE: PECO CONTACT: Cameron Kline of PECO, +1-215-841-5555

Copyright