PECO Energy Issues $750M 5.00% Mortgage Bonds Due 2031

What Happened
PECO Energy Company announced on August 10, 2026 that it issued $750 million aggregate principal amount of its First and Refunding Mortgage Bonds, 5.000% Series, due September 1, 2031. The bonds were issued under PECO’s First and Refunding Mortgage as amended by the One Hundred and Twenty-Sixth Supplemental Indenture (dated July 15, 2026) and were registered under a Form S-3 shelf registration (No. 333-277223). Net proceeds will be used to refinance outstanding commercial paper and for general corporate purposes.

Key Details

• Amount: $750,000,000 aggregate principal; Coupon: 5.000% per annum.
• Maturity: September 1, 2031; Interest payments: semi‑annual on March 1 and September 1, beginning March 1, 2027.
• Redemption: Bonds are redeemable at PECO’s option as set forth in the Supplemental Indenture.
• Transaction documentation: One Hundred and Twenty-Sixth Supplemental Indenture and an Underwriting Agreement (dated Aug. 3, 2026) were filed as exhibits; Ballard Spahr LLP provided legal opinions (filed as exhibits).

Why It Matters
This issuance replaces short-term commercial paper with longer-term financing, changing PECO’s debt maturity profile and locking in a fixed 5.000% interest cost through 2031. For investors, the move can affect PECO’s liquidity and interest expense outlook — it reduces reliance on short-term funding but increases long-term debt outstanding. The redeemable feature gives PECO flexibility to retire the bonds early if conditions change.