PECO Expects Slightly Higher Peak Electric Demand This Summer, Completes 80 Projects to Prepare for Peak Demand Season

Business Wire,  June 5, 2008  

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PECO Advises Consumers to Consider Energy Efficiency, Budget Billing Programs

PHILADELPHIA -- As summer quickly approaches and the region braces for the season's first heat wave, PECO said it has completed its critical infrastructure projects to ensure it meets peak electric demand during summertime. During the past few weeks, the company has completed more than 80 upgrade projects, dozens of readiness activities, and hundreds of maintenance tasks to ensure its 1.6 million electric customers receive reliable electric service this summer.

Summer readiness for a utility, PECO said, is based on arranging for adequate power supply with sufficient reserves, a robust and well-maintained transmission and distribution system, securing additional supplies of critical equipment, and updating training for employees on possible emergencies.

PECO said forecasts for its peak electric demand are slightly higher than last year, but below the all-time peak during the very hot summer of 2006. Additionally, PECO is working with its affiliate Exelon Generation and PJM Interconnection to ensure adequate power supplies to meet summer challenges. Based on normal weather, PECO expects a peak demand of 8,689 megawatts (MW), compared with 8,660 MW on Aug. 8, 2007 and its record peak of 8,932 MW in August 2006. One megawatt is enough electricity to power about 1,000 average homes.

"Our system and our people are ready for whatever summer brings us," said Craig Adams, PECO senior vice president and chief operating officer. "Electricity is an essential service no matter what time of the year. However, we know and understand how important reliable electric service is during the summer months. We've spent the time and money necessary to ensure we provide the quality service our customers know and expect."

With peak demand in the summer, the company must plan each year for increased supply capacity, system upgrades, and reliability improvements for certain areas for the Greater Philadelphia region. This year's completed summer readiness work is part of a $394 million capital plan for its delivery infrastructure improvements, including investments in new technology, expansion to meet increased demand, and accommodations for new residential and commercial business.

Electricity usage increases in the summer because of the increased energy required to operate air conditioners and other cooling appliances. A majority of a consumer's monthly bill, during the summer months, can be linked to the use of air conditioners and fans. Additionally, the summer heat causes cooling appliances, like refrigerators and freezers, to work harder.

PECO encourages customers to use energy wisely and look for ways to improve the efficiency of their home and cooling appliances. PECO offers a variety of energy and money saving tips on its Web site at www.peco.com/save.

One of the largest projects this year is the $22 million expansion of Southwark substation along the Delaware River waterfront. The expansion will meet the needs of the former Navy Yard and serve parts of South Philadelphia. Additionally, the company expanded its Newlinville substation in East Fallowfield Township to feed additional circuits that presently serve about 32,000 Chester County customers. The $11 million project is expected to relieve electric load of existing circuits and help meet increasing demand in Coatesville and the surrounding areas.

The company also spent $2 million to install an additional 30 reclosers in Chester County for reliability improvement, particularly during storms or outages. Reclosers are devices that automatically sense a problem on the system, automatically isolate the troubled area, and reduce the number of affected customers.

In addition to the Southwark and Newlinville projects, major investments also were made in the Eagleville and Upper Moreland areas of Montgomery County, Newtown Square and Chichester areas of Delaware County, and along the Route 202 corridor in Chester County, among others.

Some of the notable summer critical work included:

* New cable and switches on seven electric distribution circuits along the County Line Road corridor to increase reliability for customers in Warminster, Southampton and Huntingdon Valley in Bucks and Montgomery counties.

* Installation of a recloser and new substation equipment to benefit seven circuits fed from Heaton and Whitemarsh substations. Work will improve reliability to customers in Horsham and Whitemarsh townships in Montgomery County, and installation of new reclosers, poles, and cable along two distribution circuits in nearby Upper Dublin and Lower Gwynedd.

* New cable and new distribution switches installed to increase capacity to customers in the Llanerch area of Delaware County, conversion of a 4 kilovolt (Kv) line to 13Kv distribution facilities to expand electric capacity for customers in nearby Wynnewood area, and installation of new aerial and underground cable to accommodate expansion of Bryn Mawr Hospital.