PECO Energy propels energy currents in the five-county Philadelphia region. The utility, a subsidiary of Exelon, serves 1.6 million electricity customers and 494,000 natural gas customers. PECO Energy owns 29,000 circuit miles of regulated power transmission and distribution lines; its transmission assets are controlled by regional operator PJM Interconnection. The company also has more than 6,730 miles of underground gas mains. Pennsylvania's largest utility, the company operates some 500 electric substations and almost 30 natural gas gate stations. About 90% of PECO Energy's customers are residential, with the remainder being commercial and industrial.
The company provides power transmission and distribution services to retail customers in southeastern Pennsylvania, including Philadelphia, as well as the purchase and regulated retail sale of natural gas and the provision of distribution services to retail customers in the Pennsylvania counties surrounding Philadelphia. Counties served include Bucks, Chester, Delaware, Montgomery, and York.
Revenues dropped by 33% in 2011 due to a decrease in retail electric and gas and other revenues. However, net income increased by 20% in 2011 thanks to a decrease in operating expenses mainly attributable to the drop in depreciation and amortization expenses and lower interest expenses as a result of the retirement of certain transition bonds.
In Pennsylvania's deregulated electric supply market, PECO Energy is the provider of last resort (POLR) for customers who don't choose an alternative generation supplier.
The company is also pushing smart meters (automated, user-friendly, and more efficient energy controls) and green power sources to conserve energy and reduce carbon emissions, to help its parent meet federal and state regulations. In 2010 it received a $200 million federal stimulus grant towards the $650 million project, aimed at expanding the number of smart meters it had installed from 100,000 to 600,000. The expansion project began in 2012.
In 2011 the company also invested millions of dollars in infrastructure upgrades across it service region. Activities included gas pipeline replacement projects and tree trimming to protect power lines.
PECO Energy is a subsidiary of Exelon. – less