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U.S. Securities and Exchange Commission


(Release No. 35-27904; 70-9645)

Exelon Corporation

Supplemental Order Finding That Interconnection Requirement Is Satisfied

October 28, 2004

Exelon Corporation ("Exelon"), a registered holding company under the Public Utility Holding Company Act of 1935, as amended ("Act"), Chicago, Illinois and Exelon's registered holding company subsidiary, Exelon Generation Company, LLC ("GENCO"), Kennett Square, Pennsylvania and Exelon's utility subsidiaries, Commonwealth Edison Company ("ComEd"), Chicago, Illinois and PECO Energy Company ("PECO"), Philadelphia, Pennsylvania (together "Applicants") have filed a post-effective amendment to their previously filed application/declaration under sections 10 and 11 of the Act. The Securities and Exchange Commission ("Commission") issued a notice of the filing on September 9, 2004 (HCAR No. 35-27889). The Commission did not receive any requests for hearing.

By order dated October 19, 2000 ("Merger Order"), the Commission approved the merger that created Exelon (HCAR No. 27256). The Commission determined that the interconnection requirement under section 2(a)(29)(A) of the Act was satisfied, based, in part, on a certain 100 MW firm west-to-east transmission path contract ("Contract Path") which extended from the interface of the transmission systems of AEP and ComEd to the interface of the Virginia Electric and Power Company and the PJM transmission systems and, through the PJM transmission systems, to PECO. The Commission required Exelon to file a post-effective amendment seeking Commission approval in the event Exelon should decide to propose an alternative arrangement to the Contract Path.

By this post-effective amendment, Applicants request that the Commission find that the electric properties of the Exelon system satisfy the requirements of section 2(a)(29)(A) of the Act based upon the addition of American Electric Power Company's ("AEP") facilities to the electric transmission facilities operated by PJM Interconnection LLC ("PJM") rather than upon the existence of the Contract Path.

On December 20, 2002, the Federal Energy Regulatory Commission ("FERC") approved PJM as a regional transmission organization1 PECO was a founding member of PJM and PECO's transmission assets are committed to PJM's control. On April 1, 2003, ComEd received approval from FERC to transfer control of its transmission assets to PJM.2 As of May 1, 2004, both PECO's and ComEd's transmission systems are under PJM's control.

In two separate orders entered June 17, 2004 regarding AEP and PJM, FERC set October 1, 2004 as the date for AEP's transmission systems used by certain of its operating companies to be under PJM's control.3 The exhibits attached to the post-effective amendment satisfactorily establish that certain of AEP's operating companies are members of PJM, that the facilities of ComEd and PECO are interconnected through the facilities of other PJM members and that the facilities are subject to the functional control of a single operator, PJM. As the single control area operator, PJM exercises functional control, including centralized dispatch of generation, over a contiguous, interconnected electric transmission system that encompasses the operations of its members, including PECO and ComEd.

The Commission has previously determined that electric properties within PJM are physically interconnected through PJM.4 In addition, in this matter, evidence in the record supports the conclusion that PJM's operational control of the transmission assets of PECO, ComEd, those operating companies of AEP previously noted and the other transmission owners who are members of PJM, combined with PJM's centralized dispatch of generation, will result in the transmission of power between Exelon's two utilities and their economic operation as a coordinated system. We accordingly find that the electric properties of the Exelon system satisfy the interconnection requirements of section 2(a)(29)(A) of the Act without the Contract Path.

Fees, commissions and expenses incurred in connection with this post-effective amendment are estimated to be no more than $10,000. Applicants state that no state or federal commission, other than this Commission, has jurisdiction over the proposed transaction.

Due notice of the filing of this post-effective amendment has been given in the manner prescribed in rule 23 under the Act, and no hearing has been requested of or ordered by the Commission. Based on the facts in the record, the Commission finds that the applicable standards of the Act and rules are satisfied and that no adverse findings are necessary.

IT IS ORDERED, under the applicable provisions of the Act and the rules under the Act, that the post-effective amendment is granted immediately, subject to the terms and conditions of rule 24 under the Act.

For the Commission, by the Division of Investment Management, pursuant to delegated authority.

Margaret H. McFarland
Deputy Secretary



Modified: 11/08/2004