...Credit Metrics: Baltimore Gas and Electric Co.'s (BGE) financial position improved significantly in 2013 largely due to electric and gas rate increases implemented in February 2013, the expiration of a $112 million rate credit, and lower storm costs. Subsequent electric and gas rate increases implemented in December 2013 are expected to drive further improvement in 2014. Fitch Ratings estimates EBITDA/interest and FFO/interest to exceed 6.0x and FFO/debt and debt/EBITDA of about 25% and 2.5x, respectively. Dividend Restrictions: BGE is precluded from paying dividends to parent Exelon Corp. (EXC) through 2014. Fitch estimates the dividend restriction will save BGE more than $100 million in 2014 and eliminate a like amount of external financing to the benefit of credit quality. The dividend restrictions were imposed by the Maryland Public Service Commission (MPSC) in 2012 as a condition for approving the merger between EXC and Constellation Energy Group, Inc. Regulatory Recovery Mechanisms:...
