ComEd 2006 Annual Report Download - page 15

Long-Term Contracts
In addition to energy produced by owned generation assets, Generation sells electricity purchased
under the long-term contracts described below:
Seller Location Expiration Capacity (MWs)
Kincaid Generation, LLC ...................... Kincaid, Illinois 2011 1,108
Tenaska Georgia Partners, LP ................. Franklin, Georgia 2030 925
Tenaska Frontier, Ltd ......................... Shiro, Texas 2020 830
Green Country Energy, LLC ................... Jenks, Oklahoma 2022 795
Elwood Energy, LLC ......................... Elwood, Illinois 2012 772
Lincoln Generating Facility, LLC ................ Manhattan, Illinois 2011 664
Reliant Energy Aurora, LP ..................... Aurora, Illinois 2008 600
Others (a) ................................... Various 2008 to 2023 1,997
Total ...................................... 7,691
(a) Includes long-term capacity contracts with seven counterparties.
Federal Power Act
The Federal Power Act gives FERC exclusive rate-making jurisdiction over wholesale sales of
electricity and the transmission of electricity in interstate commerce. Pursuant to the Federal Power
Act, all public utilities subject to FERC’s jurisdiction are required to file rate schedules with FERC with
respect to wholesale sales and transmission of electricity. Open-Access Transmission tariffs
established under FERC regulation give Generation access to transmission lines that enable it to
participate in competitive wholesale markets.
Because Generation sells power in the wholesale markets, Generation is a public utility for
purposes of the Federal Power Act and is required to obtain FERC’s acceptance of the rate schedules
for wholesale sales of electricity. In 2000, Generation received authorization from FERC to sell power
at market-based rates. As is customary with market-based rate schedules, FERC reserved the right to
suspend market-based rate authority on a retroactive basis if it subsequently determined that
Generation or any of its affiliates violated the terms and conditions of its tariff or the Federal Power Act.
FERC is also authorized to order refunds if it finds that the market-based rates are not just and
reasonable under the Federal Power Act.
In 2004, FERC implemented new market power tests for suppliers to qualify to sell power at
market-based rates. These tests consist of the market share test and the pivotal supplier test, both of
which must be passed by Generation, or market power mitigation must be imposed for Generation to
continue to make sales of capacity and energy in the wholesale market at market-based rates. FERC
allows the relevant geographic market to include a regional transmission organization’s (RTOs)
footprint, and Generation used an expanded PJM footprint as the relevant market.
On July 5, 2005, FERC approved Generation’s continued authority to charge market-based rates
for wholesale sales of electricity, including to its affiliates ComEd and PECO. In the same order, FERC
required Generation to address the affiliate abuse and reciprocal dealing prong of FERC’s market-
based rate eligibility test, instituting a proceeding under Section 206 of the Federal Power Act, and
pending a compliance filing by Generation. On April 3, 2006, FERC accepted Exelon’s compliance
filings regarding its triennial update of market-based rates and terminated proceedings under
Section 206 of the Federal Power Act. For further discussion of this matter, see Note 4 of the
Combined Notes to Consolidated Financial Statements.
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