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Business
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| Number of pages / Number of words: |
9 / 2439 |
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(8)
Competitive Transition Charges
Another area of great risk that is linked with market commodity prices is the competitive transition charge (CTC). This charge represents the difference between the wholesale and retail energy prices that Exelon utilitizes. (15) Every spring, the CTC rate is reviewed and accordingly updated to reflect any changes in the current market price...
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This new rate is then offered to all energy customers within their region, regardless of who they actually purchase their electricity from. (8) If the customer chooses to go with the rate offered, this rate is then locked in for one or more years. While this can definitely benefit revenues for Exelon, there is also a large risk...
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