Regulatory Assets (net)

6 Months Ended

Jun. 30, 2011

Regulatory Assets (net)

Regulatory Assets (net)

Regulatory Assets (net)

In March 2011, the Maryland PSC issued a comprehensive rate order setting forth the details of the decision contained in its abbreviated electric and gas distribution rate order issued in December 2010. As part of the March 2011 comprehensive rate order, BGE was authorized to defer $18.9 million of costs as regulatory assets. These costs will be recovered over a 5-year period beginning December 2010 and relate to the deferral of:

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  $15.8 million of storm costs incurred in February 2010,

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  $2.7 million of electric deferred income tax expense recognized in 2010 relating to the elimination of the tax exempt status of drug subsidies provided to companies under Medicare Part D after December 31, 2012, and

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  $0.4 million of electric workforce reduction costs incurred in 2010.

        The regulatory assets for the storm costs and the workforce reduction costs will earn a regulated rate of return.