...Strong Credit Metrics: Higher rates effective Jan. 1, 2014 and a formula rate plan (FRP) that allows for annual rate adjustments should allow Commonwealth Edison Co. (Comed) to sustain its currently sound financial position over the next few years. Fitch Ratings estimates debt/EBITDAR and FFO leverage will approximate 3.60x and 3.75x, respectively, and FFO fixed-charge coverage will be 5.0x over the next two years, which is strong within the current rating level. Regulatory Predictability: The FRP implemented in October 2011 provides increased regulatory predictability in Illinois. The FRP, which is filed annually, recognizes forward-looking capital additions and includes a true-up mechanism reducing, albeit not eliminating, rate lag. The FRP was enacted into law by the Illinois Energy Infrastructure Modernization Act (EIMA). Constructive Rate Decision: In response to Comed's latest FRP filing in December 2014, the Illinois Commerce Commission (ICC) approved a $232 million increase in distribution...
