...Credit Metrics: Baltimore Gas and Electric Company's (BGE) financial position is consistent with its recently upgraded rating. The credit profile has been bolstered by a series of electric and gas base rate increases implemented in February and December 2013 and December 2014. 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 subject to tracking mechanisms, including energy efficiency. Base Rate Decision: In December...
