PECO Natural Gas Rate Reduction Takes Effect Dec. 1.

Winter Gas Rate 24% Lower Than a Year Ago

PHILADELPHIA -- Effective December 1, PECO will reduce its natural gas rate by nearly 4 percent, making it the fourth consecutive quarterly rate decrease and rolling rates back 24 percent lower than last December.

The lower rate will mean savings of about $80 a month for the typical residential heating customer using 200 ccf, compared to last winter, and more for larger users. The gas rate will drop from $1.29 per hundred cubic feet (ccf) to $1.24 per ccf. Following the impact of Hurricanes Katrina and Rita, the gas rate rose to $1.65 last year at this time. With improved wholesale market conditions, rate reductions were passed along March 1, June 1, and September 1.

A residential heating customer using 100 ccf will pay $131 a month, while customers using 200 ccf in a month will spend $255, including the $7.20 fixed monthly service charge. The U.S. Department of Energy has forecast households with natural gas heat will pay less than those with alternative heating systems, such as oil and propane. (source: Energy Information Administration)

"Natural gas is clean, efficient and the best value this winter. We've worked hard in recent months, arranging our gas supply for customers to provide the most competitive price available. We've locked in lower off-season wholesale prices and hedged on supply costs to protect against the market's volatility," said Reed Horting, PECO vice president, gas.

PECO's natural gas rate is made up of two parts:

* The delivery charge ($0.28/ccf) reflects the cost of moving the natural gas from the interstate pipelines to the customer, and

* The gas commodity charge ($.96/ccf), or purchased gas cost (PGC), is the part of the bill that will decrease on December 1st and reflects only the cost PECO pays to buy gas on the wholesale market and transport it from the source to the local distribution system. PECO is not permitted to mark up the commodity charge.

While the gas commodity charge fluctuates each year with the wholesale market, PECO's base delivery charge has been essentially the same since 1988.

Despite lower gas rates, heating costs still can be high in the wintertime, depending on seasonal weather and the size and energy efficiency of the home. PECO advises consumers to be aware of how they use energy around the home and use energy wisely to best manage monthly bills. PECO offers a budget-billing plan that equalizes the customer's annual energy costs throughout the year and offers consumers a predictable monthly utility bill. Customers can enroll for budget billing at www.peco.com/ehome.

To save energy during the wintertime, PECO recommends the following:

* Heaters to be inspected and cleaned by a qualified professional at least every two years for safety and optimal operation;

* A new heater filter prior to the heating season and every month or so afterward for increased efficiency;

* An insulating wrap for the hot water heater and insulating tape for the hot water pipes in exposed areas so heat is not lost as the hot water moves throughout the home;

* Water saving shower heads so less hot water is used;

* A programmable thermostat to better regulate heating temperature and energy use;

* Door jams to stop cold drafts;

* Weather stripping and caulk for leaky doors, windows and openings; and

* Plastic sheeting for windows if the home does not have storm windows or double pane windows.

While each of these items is relatively inexpensive, the potential savings from the use of these products could be more than $250 to $300 a year. More energy saving tips are available on PECO's Web site at www.peco.com or from the Alliance to Save Energy at www.ase.org.

The company also offers assistance for low and fixed income customers. Applications are now available for Low-Income Home Energy Assistance Program (LIHEAP) grants to help offset heating costs or overcome a problem with the house heater. LIHEAP grants are funded by the Federal government and administered by the state. The program's eligibility is based on family size and income.

PECO also offers discounted electric and gas rates under its CAP program, which has the largest enrollment of any utility in the state with 112,000 customers now participating. Customers interested in learning more about LIHEAP or CAP assistance can call 1-800-774-7040.

The company also matches voluntary contributions for its Matching Energy Assistance Fund (MEAF), which provides grants up to $500. Residents can apply through their local social service agency office.

Additionally, the Low Income Usage Reduction Program (LIURP) provides conservation and weatherization assistance for qualified households year round. For more information and eligibility requirements, customers can call 1-800-675-0222.

Based in Philadelphia, PECO is an electric and natural gas utility subsidiary of Exelon Corporation (NYSE: EXC). PECO serves 1.6 million electric and 470,000 natural gas customers in southeastern Pennsylvania. In 2005, the company delivered 38.7 million megawatt-hours (Mwh) of electricity and 85.1 billion cubic feet of natural gas to residential, business and institutional customers. PECO's energy delivery services generated $4.91 billion in revenue for Exelon. Founded in 1881, PECO is one of the Greater Philadelphia Region's most active corporate citizens, providing leadership, volunteer and financial support to numerous arts and culture, education, environmental, economic development and community programs and organizations.