ILLINOIS SMART GRID LAW

POWERING LIVES

LETTER FROM THE CEO Welcome to the first ever ComEd annual progress report, Powering Lives: Illinois Smart Grid Law. In it, we highlight all the work ComEd has done to support the region through a range of investments and innovations related to building a Smart Grid, deploying new technology and modernizing a century-old infrastructure.

The Illinois General Assembly’s vision in passing Smart Grid legislation is already paying off in tangible ways. ComEd is experiencing its best reliability in the company’s history and strongest customer service in a decade. This investment will help propel an even stronger and more vibrant economy for the customers and region we serve.

As always, we look forward to working together with you to advance and strengthen Illinois for a bright and prosperous future.

Anne PramaggiorePresident and CEO, ComEd.

ABOUT THIS REPORTComEd is proud to support northern Illinois—a service territory anchored by the second most powerful city in the U.S. and home to the 20th largest economy in the world—with hundreds of major corporations, thousands of entrepreneurs and 4 million residential and business customers.

At ComEd, we know that the work we do is vital to the lives and livelihoods of our customers. In this 2013 ComEd progress report, we want to share how we are following through every day on our commitment to the customers we serve, the diverse communities we support and the vibrant regional economy we power.

POWERING ILLINOIS THROUGH THE SMART GRIDComEd is investing $2.6 billion over 10 years to revamp, strengthen and modernize a century-old system—to literally connect northern Illinois to the new 21st century digital economy. We will realize this bold vision by leveraging a transformational regulatory model embodied in Illinois General Assembly legislation. Passage of the Smart Grid bill ensures sustained and predictable investment, along with measurable performance targets and results—delivering value, savings and benefits to all ComEd customers.

ComEd is already delivering on the promise of one of the most comprehensive grid modernization programs in the nation. While it’s still early in the process, we are changing how we deliver energy and how customers control their consumption and what they pay for it— bolstering our communities, the economy and the environment. And, we’re doing all this for rates that are 18% lower than the average of the 10 largest cities in the United States.

In addition, ComEd’s reliability performance is among the best in the United States, ranking in the top decile of peer utilities across the U.S. for 2013, and in the top quartile in four of the past five years.

This sweeping and innovative Smart Grid program was launched in 2012 following a year that saw some of the most severe storms ever recorded in northern Illinois. The Smart Grid investment program places intense focus on improving grid resiliency— an increasingly high priority in a digital age where so much of daily life and mission critical business functions put a premium on reliable electric power.

ComEd is replacing, refurbishing and modernizing infrastructure that includes thousands of miles of cable, thousands of utility poles and tens of thousands of manholes. We are investing in storm hardening strategies that target unique areas in the service territory that typically bear the brunt of severe storms.

Smarter Power

Customer Empowerment

New Jobs

Stronger Economy

BENEFITS

2.6BILLION IN

VEST

ING$

IMPROVING STORM RESPONSE Hundreds of thousands of residents and businesses throughout Illinois benefited from ComEd’s best performance ever in restoring power following storms in 2012 and 2013. Thanks to implementing multiple improvements recommended by the utility’s Storm Task Force, ComEd has achieved a 30 percent improvement in power restoration since 2012.

MOBILE OPERATIONS CENTER Further, a new, $1 million, state-of-the-art Mobile Operations Center (MOC) allows ComEd to rapidly deploy command teams into communities hit hard by catastrophic storms. High-tech smart boards inside the MOC are integrated with Google EarthTM mapping service and enable our engineers to zoom in on substations, locate critical facilities and help restore power to customers as quickly and safely as possible.

After the devastating tornado hit Diamond and Coal City, ComEd deployed an Incident Command Center to the area, provided support to local employees, and led a volunteer effort to help all families impacted by the damage. Edison Electric Institute awarded ComEd its 2013 Emergency Recovery Award for the utility’s storm response following the November tornadoes.

2014 Google Inc. All rights reserved. Google Earth™ mapping service is a trademark of Google Inc.

30%IMPROVEMENT

AWARD-WINNING STORM RESPONSE

SMART SWITCHES = BETTER RELIABILITY State-of-the-art digital Smart Grid technology plays a key role in reducing the frequency and duration of customer interruptions. Distribution automation (DA), or “Smart Switches,” use wireless technology to isolate problems and re-route power to prevent or reduce the duration of such events. ComEd will increase the number of customers served by circuits with DA from 55 percent to nearly 90 percent by the end of the investment program. This technology will help reduce the number of customer power interruptions by 700,000 annually, saving customers more than $100 million in associated costs. More than 500,000 customer outages were avoided in 2012–2013, saving customers over $82 million.

SMART METERS REDUCE ENERGY CONSUMPTION & COSTS The transformation under way in ComEd’s service territory calls for replacing nearly 4 million analog meters with digital smart meters. By providing two-way communication and real-time data, these meters enable customers to better manage energy consumption, take advantage of pricing programs and save money.

The automation and efficiencies offered by smart meters will generate operational savings of approximately $2 billion over 20 years—savings that will be passed on to ComEd customers and go a long way toward paying for the Smart Grid program.

Through the first quarter of 2014, ComEd installed more than 200,000 smart meters.

In 2013, ComEd unveiled a new, high-tech “smart” substation in Chicago’s Auburn-Gresham neighborhood, the first of 10 smart substations that ComEd will complete under the Smart Grid investment program. The new technology allows ComEd to remotely monitor the flow of electricity and the health of equipment—enhancing our ability to detect potential problems, avoid costly repairs and improve customer service. A $70 million program at O’Hare International Airport combining smart switches and smart substations has resulted in a 50% improvement in reliability.

The Smart Grid Network ranks Illinois a top 10 state for grid modernization and #1 for Smart Grid policy.

$2SAVINGSBILLION

500,000AVOIDEDOUTAGES

POWERING COMPETITIVE & ECONOMIC ADVANTAGE FOR ILLINOIS

The Smart Grid program also set standards for increasing opportunities among minority- and women-owned businesses, and ComEd is exceeding expectations. The company spent $579 million in 2012–2013 with diverse suppliers.

ComEd has submitted a plan to the Illinois Commerce Commission to accelerate the deployment of more than 4 million smart meters and complete installation in 2018, three years ahead of schedule, saving customers $170 million.4SMART

METERS

MILLION

2,800 JOBS

SMART JOB CREATION Creating high-paying jobs was one of the main goals of the Smart Grid program. Grid modernization supported 2,800 full-time equivalent jobs in 2013 alone. ComEd pumped over $1.5 billion in supply chain spend into the Illinois economy in 2012–2013.

SMART TRAINING FOR A NEW GENERATION Smart Grid deployment is creating an opportunity to develop a new generation of utility workers, including a concerted effort to help minority candidates enter the field. In collaboration with 18 area businesses and four social service agencies, ComEd has launched CONSTRUCT, a new eight-week program that provides career guidance, life skills training, testing preparation, practical education and information on the requirements for entering the utility and construction industries. Participating companies will provide students with job shadowing experience as well.

We’re also proud of ComEd’s ongoing relationship with Dawson Technical Institute of Kennedy-King College, Chicago, where we operate the Dawson Technical Institute and Lineman School.

Approximately 50 students graduate each year. Upon completion, graduates are prepared to work as apprentices. Since the program’s inception, 175 students have been hired by area utilities. Last year, nearly 100 percent of graduating students secured electric utility jobs.

ComEd’s state-of-the-art Training Centers are also key to our efforts to develop a new generation of workers to build, service and maintain a 21st century Smart Grid. With funding from the Smart Grid program, ComEd built a new training center in Rockford. Nearly 2,000 workers received training at the new facility in 2013. It’s also a popular field trip destination for area students and other groups interested in learning more about energy efficiency, utility careers and Smart Grid technology.

ComEd is planning to break ground on a new training center in Chicago in 2014.

“ They’re helping me start a new chapter in my life.”

– Jacquetta, student, Bethel New Life

NEW START:INVALUABLE

SMART INVESTING IN INNOVATION & TECHNOLOGY Smart Grid technology is preparing the state of Illinois to meet demands, seize emerging opportunities and attract more businesses to the region.

In 2014, General Electric will begin assembling smart meters, creating at least 50 new jobs on Chicago’s South Side. Silicon Valley–based Silver Spring Networks, a leading provider of communications networks for Smart Grid systems, is opening offices in Chicago to serve ComEd’s program and other projects across the Midwest. In addition, Smart Grid vendor Chocktaw Kaul, which supplies power tools, safety and protective equipment in conjunction with the utility’s grid modernization program, was able to open a new facility, adding new jobs.

Smart Grid investments are also providing a platform for entrepreneurs in the growing energy-tech sector. ComEd and Ameren provided $22 million to create the Energy Foundry, a venture fund supporting Illinois energy and clean-tech companies that can tap into the Smart Grid as a proving ground for new products and services.

The Energy Foundry has so far made financial grants to three early-stage companies making advances in energy management systems and battery storage. The initial grant went to software maker Root3 Technologies, which is helping large customers with campus environments save money through more efficient operation of their central energy plants. Despite being courted by Silicon Valley, Root3 Technologies has chosen to stay here in Illinois.

22MILLION EN

ERGY

FO

UNDR

Y$

HELP DURING HARDSHIPS ComEd has dedicated $50 million in financial assistance over a five-year period to help customers struggling to pay their electric bills. Combined with flexible billing options, our programs helped nearly 28,000 customers in need in 2013.

CHAMPIONING OPPORTUNITY ComEd partners with After School Matters to sponsor a Youth Ambassador Program where high school students are trained to educate residents about energy management. More than 200 high school students have learned about the Smart Grid and energy management and, in turn, attended local events where they helped educate more than 3,000 residents. We’re giving young people opportunities while building the next generation of smart energy experts.

Through our Energy Force program, we’re the first utility in the country to train people with developmental disabilities to serve as ambassadors on energy efficiency.

REACHING OUT AND GIVING BACK ComEd’s annual giving and volunteering efforts touch every corner of northern Illinois. We awarded sponsorships to more than 300 nonprofits in our service area last year. Our employees devoted more than 10,000 volunteer hours and donated more than $1 million to United Way programs. ComEd executives served on the boards of 90 nonprofit organizations.

POWERING & SUSTAINING OUR COMMUNITIES Whether it’s organizing an annual United Way giving campaign, creating jobs for disadvantaged youth or encouraging our employees to take a “Polar Bear Plunge” for Special Olympics, ComEd supports customers, nonprofit organizations and the communities we serve across our 11,000-square-mile service territory.

10,000VOLUNTEER HO

URS

50

FINA

NCIA

L AS

SIST

ANCE

MILLION

$

EMPOWERING CONSUMERS TO GO GREEN ComEd’s industry-leading energy efficiency programs, including Smart Ideas For Your Home® and Smart Ideas for Your Business®, help residents and businesses reduce their energy usage and save money.

LESS ENERGY. MORE SAVINGS.

SUSTAINABILITY

AWARDILLINOIS GOVERNOR’SIn 2013, ComEd won the

in energy efficiency incentivesfor residents and businesses

ComEd has issued more than

$58,000,000

Customers have reduced their energy usage by more than

—that’s enough to power

7.5 MILLIONMEGAWATTS

800,000HOMES

$700 MILLIONCustomers have saved more than

on electric bills

—the gold standard for environmental programs ISO 14001 CERTIFICATION

For the past FIVE consecutive years, ourenvironmental management system has earned

OUR SMART IDEAS PROGRAMS OFFER: • Loans to help finance energy

efficiency improvements (such as new refrigerators, insulation and new central air conditioning systems)

• Lighting discounts

• Home and office energy assessments

• Energy efficiency tips for home or office

EMPOWERING OUR CUSTOMERS Through our multi-year effort to significantly improve the overall customer experience, we are adding new digital tools and mobile apps to give customers faster, more convenient ways to reach us.

COMED GREEN FLEET We’re building one of the country’s largest alternative-fuel vehicle fleets, including vehicles powered by biodiesel fuels and hybrid electric vehicles.

Our green fleet of 2,100 cars and trucks reduces carbon dioxide emissions by more than 4,200 metric tons annually—the equivalent of removing approximately 1,300 cars from the road for a full year.

PROTECTING NATURAL RESOURCES AND WILDLIFE Over the past two decades, ComEd has restored hundreds of acres of natural prairie on buffer lands and transmission rights-of-way

in Illinois, protecting habitats for a number of endangered species.

Our Green Region partnership with Openlands awards grants for municipal efforts to plan for, protect and improve open land in ComEd’s service area. In its inaugural year, the program awarded $125,000 in grants to 17 municipalities and nonprofit organizations.

3MILLION MOBILE TRANSACTIONS

151,000MOBILE APP DOWNLOADS

19.1MILLION TR

ANSA

CTIO

NS

completed through ComEd’s website to date

144,000CUSTOMERS SUBSCRIBEDto text messaging alerts

4,200METRIC TO

NS

NEW BILLComEd’s spirit of commitment is embedded in the company’s Premier Customer Experience (PCE)—an initiative that puts customer needs at the center of everything we do. One of the best outcomes so far is a newly designed bill that makes it easier for customers to understand and better manage their energy use.

Introduced in March, it’s one of the first electric bills designed by—and for—customers. ComEd gathered feedback through crowdsourcing and partnered with crowdSPRING to launch a global competition with a community of designers.

COMED BILL PAYMENT CENTERCAROL STREAM, IL 60197

Return only this portion with your check made payable to ComEd. Please write your account number on your check.

Account # 0000000000

See reverse side for more info

Payment Amount:

Pay your bill online, by phone or by mail.

SERVICE FROM 11/20/13 THROUGH 12/23/13 (33 DAYS)

TOTAL USAGE (kWh)

CURRENT CHARGES SUMMARY

SUPPLY

26.742º

DELIVERY

000000000000000000000000000000

008001 1 AB 0.301 0001/008001/000002 047 2 H00180

CUSTOMER NAME123 STREETCITY IL 00000-00000

Total Amount Due by 01/21/14 $93.97

Retail Delivery Service - RES Single

DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

1005

774857

1329

987

12881055

918

768834

1035

12711069

2013

See reverse side for details

Supplier Name000-000-0000

You can choose at PlugInIllinois.org

Supplier provides your energy. ComEd delivers electricity to your home.

ComEd.com

kWh 34.5 kWh

avg. tempLast Month

Thank you for your payments totaling $76.04.

Issued 12/27/13 Account# 0000000000

Total Amount Due by 01/21/14 $93.97

30.5

AVERAGE DAILY USE (monthly usage/days in period)

kWh 12% from last year

Current Month

38º avg. temp

25º avg. temp

1 Year Ago

Ten 100W light bulbs for 1 hour = 1 kWh

1-800-334-7661

$47.74 $36.33

TAXES & FEES$9.90

CUSTOMER NAME123 STREETCITY IL 00000-00000000-000-0000

2012

TOTAL USAGENow highlights current month’s energy usage in a graph.

CURRENT CHARGESShows cost breakdown of Supply, Delivery, and Taxes & Fees.

– Supply indicates who provides your energy and is your choice.

– Delivery is always provided by ComEd.

– Taxes & Fees are mandated by your local and state governments.

TOTAL AMOUNT DUE

TOTAL AMOUNT DUEContains current charges and due date.

AVERAGE DAILY USAGECurrent month’s average daily usage with arrow indicating comparison to last year.

We are proud of the change that has already occurred and are committed to making ComEd the best it can be. We will do that by listening to our customers, building a modern electric grid, supporting our economy and investing in our communities.

“ Treat every customer in every interaction in the same manner in which you would expect to be treated.”

Commonwealth Edison Company440 S. LaSalle Street

Suite 3300Chicago, IL 60605

ComEd.com

© Commonwealth Edison Company, 2014

The statements and claims contained in this Progress Report are based on the best-available information as of April 30, 2014 and are subject to revision or change.