...Solid Credit Profile: Commonwealth Edison Co.'s (Comed) financial position is consistent with its recently upgraded Issuer Default Rating. A formula rate plan (FRP) that allows for annual rate adjustments should allow Comed to sustain its sound financial position over the next few years. Fitch Ratings estimates debt/EBITDAR and FFO leverage will average approximately 3.75x and 3.5x, respectively, over the next two years and FFO fixed-charge coverage will average 6.0x, which is well positioned within the current rating level. Regulatory Predictability: The FRP implemented in October 2011 provides increased regulatory predictability in Illinois. The FRP is filed annually and recognizes forward-looking capital additions and includes a true-up mechanism reducing, though not eliminating, rate lag. One drawback is the formulaic return on equity (ROE) calculation that results in a below- average ROE in the current low-interest-rate environment, somewhat mitigated by the forward- looking capital...
