Supplement No. '!.?. to, _ Gas-Pa. P.U.C. No. 3.Eleventh Revised Page No. 1 Supersedes Tenth Revised Page No. 1 _

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1 Supplement No. 1i to ~ 1 PECO ENERGY COMPANY GAS SERVICE TARIFF COMPANY OFFICE LOCATION 2301 Market Street Philadelphia, Pennsylvania 191O1 For List of Communities Served, See Page 3. lssued,/'lovember Effective~. 20),!! f;..de1et ed _:_ sep1ebm _.;. - er < i 14 ISSUED BY: M. A. lnnocenzo President & CEO PECO Energy Distribution Company 2301 MARKET STREET PHILADELPHIA, PA NOTICE. December 1 8

2 PECO Energy Company LIST OF CHANGES MADE BY THIS SUPPLEMENT Supplement No. '!.?. to, _.Eleventh Revised Page No. 1 Supersedes Tenth Revised Page No. 1 _ 1 Tenth Ninth Neighborhood Gas Pilot Rider 1" Revised Page No.BO Rider is revised to extend the length of the pilot by two years to a total of five years and to increase the spending lim it from S1 O million to S25 million Provisions for Recovery of Universal Service Fund Charge!USFC! -1" Revised Page No. 36'\1 Renects annual update to USFC.'\1 '11 Rate GR- General Service Residential - 3'' Revised Page No. 54'\1 Variable Distribution Charge lcreased to reflect annual update to USFC.'\1 lssued J'iovember ,, September 14 December 1 8

3 Supplement No. 12. to ( 1.Tenth Revised Page No. 2 PECO Energy Company '="Supersedes lfu!!h_revised. Page No. 2 TABLE OF CONTENTS Index of Communities Served How to Use Loose-Leaf Tariff Definition of Terms and Explanation of Abbreviations , 6, 7' RULES AND REGULATIONS: 1. The Gas Service Tariff Service Specifications Custome(s Installation Application for Service Credit Service-Supply Facilities Extensions Rights-of-Way Introduction of Service Company Equipment Tariff Options on Applications for Service Service Continuity Custome(s Use of Service Measurement Tests Payment Terms Termination by the Company Unfulfilled Contracts Cancellation by Customer General Gas Choice Program Enrollment and/or Switching Usage Data Affiliated Marketer Standards of Conduct Requests for Energy Efficiency Information, Creditworthiness of Natural Gas Supplier (NGS) Serving High Volume Transportation Customers STATE TAX ADJUSTMENT CLAUSE ' TAX CUTS AND JOBS ACT (TCJA) VOLUNTARY SURCHARGE A UNIVERSAL SERVICE COST RECOVERY MECHANISM ' SALES SERVICE COSTS- ("SSC") Section 1307(1) ' 38' GAS PROCUREMENT CHARGE MERCHANT FUNCTION CHARGE '. 42 ' BALANCING SERVICE COSTS ("BSC") ' CONSUMER EDUCATION CHARGE (CEC) PROVISION FOR THE TAX ACCOUNTING REPAIR CREDIT (TARC) DISTRIBUTION SYSTEM IMPROVEMENT CHARGE (DSIC) ' RATES: Rate GR General Service - Residential ' Rate GC General Service - Commercial and Industrial ' Rate OL Outdoor Lighting ' Rate L Large High Load Factor Service ' Rate MV-F Motor Vehicle Service-Firm , ' Rate MV-1 Motor Vehicle Service-Interruptible ' Rate IS Interruptible Service ' Rate TCS Temperature Controlled Service , Gas Transportation Service - General Terms and Conditions ' Rate TS-I Gas Transportation Service - Interruptible ' Rate TS-F Gas Transportation Service-Firm ' Rate CGS - City Gate Sales Service Rate NGS - Negotiated Gas Service RIDERS: Applicability Index of Riders Casualty Rider Construction Rider Excess Off-Peak Use Rider ' Neighborhood Gas Pilot Rider Receivership Rider Temporary Service Rider Customer Assistance Program (CAP) Rider Ninth Eighth September 14 lssued,t!ovembe[.im, ,:Effect ive~, 20 1.,1! December 1 8

4 Supplement No. 12 to First Revised Page No. 80 PECO Energy Company.Supersedes Original Page No. 80 { NEIGHBORHOOD GAS PILOT RIDER (NGPRI AVAILABILITY The Neighborhood Gas Pilol Rider (NGPR) is available lo any new residenlial cuslomer who: (1) applies for natural gas service within the Company's service territory under Rate Schedules GR or CAP; (2) would be required to pay the portion of the main extension and service line project ccsts that exceed the Company's capital investment under Rule No. 7 Extensions of the Company's gas service tariff ("Rule No. 7") for an exlension of the Company's distribution facilities needed to furnish natural gas service to that customer: and (3) meets the Program Criteria set forth below. The NGPR will close for new main extension projects on March 31, 2~ unless the Company decides to exteqd this ----~(C=l { 19 program and the extension is approved by the Commission. The Company reserves the right to suspend the pilot program if. in its sole judgment, critical safely or reliability related issues require that the resources that would be used to implement ~,the NGPR are needed to maintain safe and reliable natural gas service to its existing customers. The Company shall be > < the sole judge in establishing what constitutes a neighborhood when determining the availabilily under this pilot program ~D d e le te _: ~ NATURE OF THE NGPR The NGPR provides customers an alternative method of making the payment required by Rule No 7 when the extension of distribution facililies needed to serve eligible new customers is not eccnomicalty justified based on the anlicipated revenues from natural gas distribution service that would be provided to customers served by such extension The NGPR provides for a fixed charge (NGPR Charge) to be added to lhe customers bill. The NGPR Charge shall be calculated separately for each main extension project and shall be based on the cost of that particular project in the manner descnbed below for each customer served from such main extension project. PROGRAM CRITERIA For a main extension project to qualify for the NGPR. the cost for such project must equal or exceed $ and must meet the following additional criteria: (1) A minimum of twenty percent (20%) of the existing residences located along the new main extension must commit to receive natural gas service by signing an agreement prior to the start of construction; (2) The Company must have adequate syslem capacity to serve the customers that are eligible to receive natural gas service from the main extension: and (3) The Company's total investment under lhis pilol program is limited to no more than ~.000, 000 over -"CJ ~t.'2) years,. The l!.y! year period that this pilol program is in effect shall commence on March and, as set forth above. shall close on March 31. 2~. CALCULATION OF THE NGPR CHARGE A Net Present Value (NPV) economic test (based on 40 years of revenue for each customer) shall be used to determine the payment required by Rule No. 7. Pursuant to Rule No. 7, if the NPV of the capital investment and the associated estimated revenues is less than zero, a customer is required to make a payment to the Company in an amount that would produce an NPV of zero, exclusive of any tax on lhe NGPR For purposes of this NGPR, however, in calculating the NPV, the anticipated revenues from natural gas service shall consist of: (1) the revenues from 20% (or greater) of eligible customers signing a contract prior to the start of ccnstruction to take natural gas service in the first year, which is one of the Program Criteria that must be satisfied for a projecl to be eligible for the NGPR: and (2) additional revenues based on lhe assumption lhat 66% of the eligible customers within the project area will sign a ccntract for natural gas service within 20 years of the completion of the project. Capital investment shall include the total ccst of new main(s) and service facilities installed under the NGPR, excluding the ccsts of meters and meter installations, to serve eligible customers. Estimated revenues shall be based on the applicable variable distribution charge rate set forth in the Company's gas service tariff, the estimated annual consumption and the portion of the fixed distribution charge that is attributable to the capital costs of a service line. 10 three 3 and shall not exceed $ for any particular l year three 19 - September 7 7 IC! Denotes Change lssued ~ ovember 28, 201i! EffectiveJ anuary,;18, 20 1,1! ~ December 8 7

5 Supplement No. 12 to PECO ENERGY COMPANY GAS SERVICE TARIFF COMPANY OFFICE LOCATION 2301 Market Street Philadelphia, Pennsylvania For List of Communities Served, See Page 3. Issued November 28, 2018 Effective January 28, 2019 ISSUED BY: M.A. lnnocenzo - President & CEO PECO Energy Distribution Company 2301 MARKET STREET PHILADELPHIA, PA NOTICE.

6 PECO Energy Company Supplement No. 12 to Eleventh Revised Page No. 1 Supersedes Tenth Revised Page No. 1 LIST OF CHANGES MADE BY THIS SUPPLEMENT Neighborhood Gas Pilot Rider 1 1 Revised Page No.SO Rider is revised to extend the length of the pilot by two years to a total of five years and to increase the spending limit from $10 million to $25 million. Issued November 28, 2018 Effective January 28, 2019

7 Supplement No. 12 to Tenth Revised Page No. 2 PECO Energy Company Supersedes Ninth Revised Page No. 2 TABLE OF CONTENTS Index of Communities Served How to Use Loose-Leaf Tariff Definition ofterms and Explanation of Abbreviations , ,... 5, 6. 7 RULES AND REGULATIONS: 1. The Gas Service Tariff , Service Specifications Customer's Installation Application for Service Credit , Service-Supply Facilities Extensions Rights-of-Way Introduction of Service Company Equipment Tariff Options on Applications for Service Service Continuity Customer's Use of Service Measurement Tests Payment Terms Termination by the Company Unfulfilled Contracts Cancellation by Customer ,, , General , Gas Choice Program Enrollment and/or Switching Usage Data Affiliated Marketer Standards of Conduct Requests for Energy Efficiency Information Creditworthiness of Natural Gas Supplier (NGSJ Serving High Volume Transportation Customers STATE TAX ADJUSTMENT CLAUSE TAX CUTS AND JOBS ACT (TCJA) VOLUNTARY SURCHARGE A UNIVERSAL SERVICE COST RECOVERY MECHANISM SALES SERVICE COSTS - ("SSC") Section 1307(1) , GAS PROCUREMENT CHARGE MERCHANT FUNCTION CHARGE , 42 3 BALANCING SERVICE COSTS ("BSC") CONSUMER EDUCATION CHARGE (CEC) PROVISION FOR THE TAX ACCOUNTING REPAIR CREDIT (TARC) DISTRIBUTION SYSTEM IMPROVEMENT CHARGE (OSIC) RATES: Rate GR General Service - Residential Rate GC General Service - Commercial and Industrial Rate OL Outdoor Lighting......, ,..., Rate L Large High Load Factor Service Rate MV-F Motor Vehicle Service-Firm , Rate MV-1 Motor Vehicle Service-lnterruptible Rate IS Interruptible Service Rate TCS Temperature Controlled Service Gas Transportation Service - General Terms and Conditions , 67 1 Rate TS-I Gas Transportation Service - Interruptible Rate TS-F Gas Transportation Service-Firm Rate CGS - City Gate Sales Service Rate NGS - Negotiated Gas Service RIDERS: Applicability Index of Riders , Casualty Rider Construction Rider , Excess Off-Peak Use Rider Neighborhood Gas Pilot Rider Receivership Rider Temporary Service Rider Customer Assistance Program (CAP) Rider Issued November 28, 2018 Effective January 28, 2019

8 PECO Energy Company Supplement No. 12 to Gas-Pa. P.U.C. No. 3 First Revised Page No. 80 Supersedes Original Page No. 80 NEIGHBORHOOD GAS PILOT RIDER CNGPRl AVAILABILITY The Neighborhood Gas Pilot Rider (NGPR) is available to any new residential customer who: (1) applies for natural gas service within the Company's service territory under Rate Schedules GR or CAP; (2) would be required to pay the portion of the main extension and service line project costs that exceed the Company's capital investment under Rule No. 7 Extensions of the Company's gas service tariff ("Rule No. 7") for an extension of the Company's distribution facilities needed to furnish natural gas service to that customer; and (3) meets the Program Criteria set forth below. The NGPR will close for new main extension projects on March 31, 2021 unless the Company decides to extend this program and the extension is approved by the Commission. The Company reserves the right to suspend the pilot program if, in its sole judgment, critical safety or reliability related issues require that the resources that would be used to implement the NGPR are needed to maintain safe and reliable natural gas service to its existing customers. The Company shall be the sole judge in establishing what constitutes a neighborhood when determining the availability under this pilot program. (C) NATURE OF THE NGPR The NGPR provides customers an alternative method of making the payment required by Rule No. 7 when the extension of distribution facilities needed to serve eligible new customers is not economically justified based on the anticipated revenues from natural gas distribution service that would be provided to customers served by such extension. The NGPR provides for a fixed charge (NGPR Charge) to be added to the customer's bill. The NGPR Charge shall be calculated separately for each main extension project and shall be based on the cost of that particular project in the manner described below for each customer served from such main extension project. PROGRAM CRITERIA For a main extension project to qualify for the NGPR, the cost for such project must equal or exceed $15,000 and must meet the following additional criteria: (1) A minimum of twenty percent (20%) of the existing residences located along the new main extension must commit to receive natural gas service by signing an agreement prior to the start of construction; (2) The Company must have adequate system capacity to serve the customers that are eligible to receive natural gas service from the main extension; and (3) The Company's total investment under this pilot program is limited to no more than $25,000,000 over five (5) years. The five-year period that this pilot program is in effect shall commence on March 31, 2016 and, as set forth above, shall close on March 31, (C) CALCULATION OF THE NGPR CHARGE A Net Present Value (NPV) economic test (based on 40 years of revenue for each customer) shall be used to determine the payment required by Rule No. 7. Pursuant to Rule No. 7, if the NPV of the capital investment and the associated estimated revenues is less than zero, a customer is required to make a payment to the Company in an amount that would produce an NPV of zero, exclusive of any tax on the NGPR For purposes of this NGPR, however, in calculating the NPV, the anticipated revenues from natural gas service shall consist of: (1) the revenues from 20% (or greater) of eligible customers signing a contract prior to the start of construction to take natural gas service in the first year, which is one of the Program Criteria that must be satisfied for a project to be eligible for the NGPR; and (2) additional revenues based on the assumption that 66% of the eligible customers within the project area will sign a contract for natural gas service within 20 years of the completion of the project. Capital investment shall include the total cost of new main(s) and service facilities installed under the NGPR, excluding the costs of meters and meter installations, to serve eligible customers. Estimated revenues shall be based on the applicable variable distribution charge rate set forth in the Company's gas service tariff, the estimated annual consumption and the portion of the fixed distribution charge that is attributable to the capital costs of a service line. (C) Denotes Change Issued November 28, 2018 Effective January 28, 2019

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