...Credit Metrics: Baltimore Gas and Electric Company's (BGE) financial position is strong relative to its current rating. The strong credit profile is largely due to electric and gas base rate increases implemented in February and December 2013. Subsequent electric and gas tariff increases effective December 2014 should allow BGE to sustain its sound credit profile. In 2015, Fitch Ratings expects debt/EBITDAR and FFO fixed-charge coverage to approximate the 2014 levels of 2.9x and 5.8x, respectively, with FFO-adjusted leverage increasing to a still strong range of 3.25x¡3.5x. Regulatory Recovery Mechanisms: Rate adjustment mechanisms outside of base rate cases tend to stabilize BGE's cash flow. These include decoupling for both residential and commercial gas and electricity sales, and purchased gas and purchased power recovery mechanisms. In 2014, Maryland regulators approved a rider to recover gas infrastructure improvements and have approved two subsequent surcharges. Certain capex is also...
