...Solid Credit Profile: Commonwealth Edison Co.'s (ComEd) financial position is consistent with its current rating. A formula rate plan (FRP) that allows for annual rate adjustments should allow the company to sustain its sound financial position over the next few years. Fitch Ratings estimates debt/EBITDAR and FFO leverage will average approximately 3.5x and 4.0x, respectively, over the next several years, with FFO fixed-charge coverage of over 5.0x, leaving ComEd well positioned 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; together these reduce, though don't eliminate, 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, mitigated by forward-looking capital additions...
