BGE Updates Filing to Provide Additional Federal Tax Reduction Benefits to Customers

January 11, 2018

BALTIMORE–(BUSINESS WIRE)–Today BGE
updated its filing with the Maryland Public Service Commission (PSC) to
provide annual tax savings to customers, following additional analysis
of federal tax cost reductions. The amended filing results in an
increase to the benefit to customers to approximately $103 million in
annual tax savings, up from the approximately $82 million announced last
week.

As a result, customers can expect additional decreases to rates, pending
PSC approval of the plan. BGE estimates that the average BGE residential
electric customer can expect to see an estimated $2.91 decrease on their
monthly bill, and the average residential combined natural gas and
electric customer can expect an estimated $5.41 monthly reduction. BGE
has proposed that the reduced rates would be effective in February 2018.

BGE filed the proposed reduced rates as a result of the decrease in the
corporate tax rate from 35 percent to 21 percent under the federal Tax
Cuts and Jobs Act, which became effective on Jan. 1, 2018.

BGE,
founded in 1816 as the nation’s first gas utility and headquartered in
Baltimore, is Maryland’s largest natural gas and electric utility. The
company’s approximately 3,200 employees are committed to safe and
reliable power delivery to more than 1.25 million electric customers and
more than 650,000 natural gas customers in central Maryland, as well as
enhanced energy management, conservation, environmental stewardship and
community assistance. J.D. Power’s 2017 Electric Utility Business
Customer Satisfaction Study SM ranked BGE
highest in customer satisfaction with business electric service in the
east among large utilities. The company also has an estimated annual
economic impact of $5 billion of output in its service area, supporting
more than 9,500 local jobs and producing $923 million in labor income.
BGE is a subsidiary of Exelon Corporation (NYSE: EXC), the nation’s
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