Investment in Constellation Energy Nuclear Group, LLC (Exelon and Generation)

3 Months Ended

Mar. 31, 2013

Equity Method Investments and Joint Ventures [Line Items]

Investment in Constellation Energy Nuclear Group, LLC (Exelon and Generation)

6. Investment in Constellation Energy Nuclear Group, LLC (Exelon and Generation)

As a result of the Constellation merger, Generation owns a 50.01% interest in CENG, a nuclear generation business. Generation's total equity in earnings (losses) ontheinvestment in CENG is as follows:

	Three Months			For the Period March 12,
	Ended March 31,			through March 31,
	2013		2012
Equity investment income (loss)	$	15	$	(9)
Amortization of basis difference in CENG		(27)		(12)
Total equity in losses - CENG	$	(12)	$	(21)

As of March 12, 2012, Generation had an initial basis difference of approximately $204 million between the initial carrying value of its investment in CENG and its underlying equity in CENG.  This basis difference resulted from the requirement to record the investment in CENG at fair value under purchase accounting while the underlying assets and liabilities within CENG continue to be accounted for on a historical cost basis.Generationis amortizing this basis difference over the respective useful lives of the assets and liabilities of CENG or as those assets and liabilities impact the earnings of CENG.

In future periods, Generation may be eligible for distributions from its investment in CENG in excess of its 50.01% ownership interest based on tax sharing provisions contained in the operating agreement for CENG. Through purchase accounting, Generation recorded the fair value of expected future distributions. Generation will record these distributions when realized as a reduction in its investment in CENG. Distributions realized in excess of the fair value recorded would be recorded in earnings in the period earned.

Related Party Transactions (Exelon and Generation)

CENG

A wholly-owned subsidiary of Generation has an agreement under which it is purchasing 85% of the output of CENG's nuclear plants that is not sold to third parties under pre-existing firm and unit contingent PPAs through 2014. Beginning on January 1, 2015 and continuing to the end of the life of the respective plants, Generation will purchase on a unit contingent basis 50.01% of the output of CENG's nuclear plants, and EDF will purchase on a unit contingent basis 49.99% of the output.

In addition to the PPA, a subsidiary of Generation has a power services agency agreement (PSAA) with the CENG plants, which expires on December 31, 2014. The PSAA is a five-year agreement under which Generation provides scheduling, asset management and billing services to the CENG plants for a specified monthly fee. The charges for services reflect the cost of the service.

In addition to the PSAA, Exelon has a shared services agreement (SSA) with CENG, which expires in 2017. Pursuant to an agreement between Exelon and EDF, the pricing in the SSA for services reflect actual costs determined on the same basis that BSC charges its affiliates for similar services subject to an annual cap for most SSA services provided.

The impact of transactions under these agreements on Exelon's and Generation's Consolidated Financial Statements is summarized below:

	Income/(Expense)		Income/(Expense)			Accounts
	Three Months		For the Period		Income	Receivable/
	Ended		March 12 through		Statement	(Accounts Payable)
Agreement	March 31, 2013		March 31, 2012		Classification	At March 31, 2013
PPA	$	(248)	$	(35)	Purchased power and fuel	$	(70)
PSAA		1		1	Operating revenues		-
SSA		11		3	Operating revenues		4

Exelon Generation Co L L C [Member]

Equity Method Investments and Joint Ventures [Line Items]

Investment in Constellation Energy Nuclear Group, LLC (Exelon and Generation)

6. Investment in Constellation Energy Nuclear Group, LLC (Exelon and Generation)

As a result of the Constellation merger, Generation owns a 50.01% interest in CENG, a nuclear generation business. Generation's total equity in earnings (losses) ontheinvestment in CENG is as follows:

	Three Months			For the Period March 12,
	Ended March 31,			through March 31,
	2013		2012
Equity investment income (loss)	$	15	$	(9)
Amortization of basis difference in CENG		(27)		(12)
Total equity in losses - CENG	$	(12)	$	(21)

As of March 12, 2012, Generation had an initial basis difference of approximately $204 million between the initial carrying value of its investment in CENG and its underlying equity in CENG.  This basis difference resulted from the requirement to record the investment in CENG at fair value under purchase accounting while the underlying assets and liabilities within CENG continue to be accounted for on a historical cost basis.Generationis amortizing this basis difference over the respective useful lives of the assets and liabilities of CENG or as those assets and liabilities impact the earnings of CENG.

In future periods, Generation may be eligible for distributions from its investment in CENG in excess of its 50.01% ownership interest based on tax sharing provisions contained in the operating agreement for CENG. Through purchase accounting, Generation recorded the fair value of expected future distributions. Generation will record these distributions when realized as a reduction in its investment in CENG. Distributions realized in excess of the fair value recorded would be recorded in earnings in the period earned.

Related Party Transactions (Exelon and Generation)

CENG

A wholly-owned subsidiary of Generation has an agreement under which it is purchasing 85% of the output of CENG's nuclear plants that is not sold to third parties under pre-existing firm and unit contingent PPAs through 2014. Beginning on January 1, 2015 and continuing to the end of the life of the respective plants, Generation will purchase on a unit contingent basis 50.01% of the output of CENG's nuclear plants, and EDF will purchase on a unit contingent basis 49.99% of the output.

In addition to the PPA, a subsidiary of Generation has a power services agency agreement (PSAA) with the CENG plants, which expires on December 31, 2014. The PSAA is a five-year agreement under which Generation provides scheduling, asset management and billing services to the CENG plants for a specified monthly fee. The charges for services reflect the cost of the service.

In addition to the PSAA, Exelon has a shared services agreement (SSA) with CENG, which expires in 2017. Pursuant to an agreement between Exelon and EDF, the pricing in the SSA for services reflect actual costs determined on the same basis that BSC charges its affiliates for similar services subject to an annual cap for most SSA services provided.

The impact of transactions under these agreements on Exelon's and Generation's Consolidated Financial Statements is summarized below:

	Income/(Expense)		Income/(Expense)			Accounts
	Three Months		For the Period		Income	Receivable/
	Ended		March 12 through		Statement	(Accounts Payable)
Agreement	March 31, 2013		March 31, 2012		Classification	At March 31, 2013
PPA	$	(248)	$	(35)	Purchased power and fuel	$	(70)
PSAA		1		1	Operating revenues		-
SSA		11		3	Operating revenues		4