the authority to engage in transactions with affiliates Bank of New York (“BONY”) and BNY Mellon Trust Company be granted for the same amount of time as set forth in the Amended Petition on Reopening in Docket No. 10-0143. Staff noted it is also possible that other financial institutions involved in transactions with ComEd may later become affiliated interest with the Company. Staff focused its review of the filing and responses on whether compensation for the current or future affiliated interests is commensurate with compensation offered other participating financial institutions relative to the services provided. Commonwealth Edison stated that it will negotiate with parties without regard to affiliation; will always use market prices as a reference; and will not consider party affiliation when making its decisions.
Further, the Company will file a report with the Commission describing the selection or bidding process used, the fees paid to affiliates and non-affiliates, and a representation that the terms and conditions for comparable service providers meet or exceed market conditions. Staff concluded the affiliated interest compensation under the proposed credit agreement is commensurate with what is otherwise available in the market. Therefore, Staff does not object to approval of ComEd’s Verified Petition on Reopening to extend its authority.
Docket 10-0143 – Extension of Unused Financing Authority
Commonwealth Edison filed a Verified Petition on Reopening seeking to have the Commission (i) extend the Company’s authority to enter into loan agreements and continue to incur financing on or after March 28, 2012, but not later than the term of such Loan Agreement (as it may be extended by its terms) or 5 years from the date of such Loan Agreement (ii) extend the previously granted authority for the Securities from the current expiration date of March 24, 2013 until March 28, 2015 and (iii) permit Commonwealth Edison to take any other action as is appropriate, reasonable and proper for its purposes as set forth in the March 24, 2010 order. Commonwealth Edison maintained that this filing is also precipitated by the needs, financing alternatives, and flexibility as stated previously. ComEd also stated its request to extend the Company’s authority in this manner is also necessary for its business interests as a public utility the best interest and convenience of the public overall.
In addition, ComEd will continue to file reports pursuant to 83 Ill. Adm. Code 240 and maintains additional fees should not be assessed under Section 6-108 of the Act as set forth by the Commission in Dockets 02-0750; 03-0638 and 04-0423.
The Company requests the Commission extend ComEd’s authority in Docket 10-0143 pursuant to the March 24, 2010 Order and subject to the modifications stated in the Amended Verified Petition.
Staff reviewed the underlying petition, supplemental information, and Ms. Burnes’ testimony, (ComEd Ex. 1.0R), Staff noted the Company currently maintains authority to enter into loan agreements and incur other indebtedness until March 24, 2013.
Staff’s Position in Docket 10-0143
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