Segment Information (Exelon, Generation, ComEd, PECO and BGE)

3 Months Ended

Mar. 31, 2013

Segment Information [Line Items]

Segment Information (Exelon, Generation, ComEd, PECO and BGE)

19. Segment Information (Exelon, Generation, ComEd, PECO and BGE)

Exelon has nine reportable segments, ComEd, PECO, BGE and Generation's six power marketing reportable segments consisting of the Mid-Atlantic, Midwest, New England, New York, ERCOT and all other regions not considered individually significant referred to collectively as “Other Regions”; including the South, West and Canada. Generation's expanded number of reportable segments is the result of the acquisition of Constellation on March 12, 2012. ComEd, PECO and BGE each represent a single reportable segment; as such, no separate segment information is provided for these Registrants. Exelon evaluates the performance of ComEd, PECO and BGE based on net income.

The foundation of Generation's six reportable segments is based on the geographic location of its assets, and is largely representative of the footprints of an ISO / RTO and/or NERC region. Descriptions of each of Generation's six reportable segments are as follows:

• Mid-Atlantic represents operations in the eastern half of PJM, which includes Pennsylvania, New Jersey, Maryland, Virginia, West Virginia, Delaware, the District of Columbia and parts of North Carolina.
• Midwestrepresents operations in the western half of PJM, which includes portions of Illinois, Indiana, Ohio, Michigan, Kentucky and Tennessee, and the entire United States footprint of MISO, which covers all or most of North Dakota, South Dakota, Nebraska, Minnesota, Iowa, Wisconsin, the remaining parts of Illinois, Indiana, Michiganand Ohio not covered by PJM, and parts of Montana, Missouriand Kentucky.
• New Englandrepresents the operations within ISO-NE covering the states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.
• New Yorkrepresents operations within ISO-NY, which covers the state of New York in its entirety.
• ERCOT represents operations within Electric Reliability Council of Texas, covering most of the state of Texas.
• Other Regions not considered individually significant:
• South represents operations in the FRCCand the remaining portions of the SERC not included within MISO or PJM, which includes all or most of Florida, Arkansas, Louisiana, Mississippi, Alabama, Georgia, Tennessee, North Carolina, South Carolina and parts of Missouri, Kentucky and Texas.Generation's South region also includes operations in the SPP, covering Kansas, Oklahoma, most of Nebraska and parts of New Mexico, Texas, Louisiana, Missouri, Mississippi and Arkansas.
• West represents operations in the WECC, which includes California ISO, and covers the states of California, Oregon, Washington, Arizona, Nevada, Utah, Idaho, Colorado, and parts of New Mexico, Wyoming and South Dakota.
• Canada represents operations across the entire country of Canada and includes the AESO, OIESO and the Canadian portion of MISO.

Exelon and Generation evaluate the performance of Generation's power marketing activities based on revenue net of purchased power and fuel expense. Generation believes that revenue net of purchased power and fuel expense is a useful measurement of operational performance. Revenue net of purchased power and fuel expense is not a presentation defined under GAAP and may not be comparable to other companies' presentations or deemed more useful than the GAAP information provided elsewhere in this report. Generation's operating revenues include all sales to third parties and affiliated sales to ComEd, PECO and BGE. Purchased power costs include all costs associated with the procurement and supply of electricity including capacity, energy and ancillary services. Fuel expense includes the fuel costs for Generation's own generation and fuel costs associated with tolling agreements. Generation's other business activities, including retail and wholesale gas, upstream natural gas, proprietary trading, energy efficiency and demand response, the design, construction, and operation of renewable energy, heating, cooling, and cogeneration facilities, and home improvements, sales of electric and gas appliances, servicing of heating, air conditioning, plumbing, electrical, and indoor quality systems, are not allocated to regions. Further, Generation's compensation under the reliability-must-run rate schedule, results of operations from the BrandonShores, Wagner, and C.P. CraneMaryland generating stations, and other miscellaneous revenues, mark-to-market impact of economic hedging activities, and amortization of certain intangible assets relating to commodity contracts recorded at fair value as a result of the merger are also not allocated to a region.

An analysis and reconciliation of the Registrants'reportable segment information to the respective information in the consolidated financial statements for the three and three months ended March 31, 2013 and 2012 is as follows:

		Generation(a)		ComEd		PECO		BGE(b)		Other(c)		Intersegment Eliminations		Exelon
Total revenues(d):
	2013	$	3,533	$	1,160	$	895	$	880	$	318	$	(704)	$	6,082
	2012		2,743		1,388		875		52		351		(719)		4,690
Intersegment revenues(e):
	2013	$	381	$	1	$	0	$	4	$	318	$	(704)	$	0
	2012		370		1		1		1		346		(719)		0
Net income (loss):
	2013	$	(17)	$	(81)	$	122	$	80	$	(103)	$	0	$	1
	2012		166		87		97		(65)		(85)		0		200
Total assets:
	March 31, 2013	$	39,991	$	23,256	$	9,491	$	7,639	$	10,139	$	(12,273)	$	78,243
	December 31, 2012		40,681		22,905		9,353		7,506		10,432		(12,316)		78,561

__________

(a)       Generation includes the six power marketing reportable segments shown below: Mid-Atlantic, Midwest,New England, New York, ERCOTand Other Regions. Intersegment revenues for Generation for the three months ended March 31, 2013 include revenue from sales to PECO of $ 141 million and sales to BGE of $113 million in the Mid-Atlantic region, and sales to ComEd of $145 million in the Midwest region, net of $ (17) million related to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation. For the three months ended March 31, 2012 intersegment revenues for Generation include revenue from sales to PECO of $111 million and sales to BGE of $19 million in the Mid-Atlantic region, and sales to ComEd of $247 million in the Midwest region, net of $11 million related to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation.

(b)       2012 amounts represent activity recorded at BGE from March 12, 2012, the closing date of the merger, through March 31, 2012.

(c)       Other primarily includes Exelon's corporate operations, shared service entities and other financing and investment activities.

(d)       For the three months ended March 31, 2013 and 2012, utility taxes of $21 million and $13 million, respectively, are included in revenues and expenses for Generation. For the three months ended March 31, 2013 and 2012, utility taxes of $60million and $61million, respectively, are included in revenues and expenses for ComEd. For the three months ended March 31, 2013 and 2012, utility taxes of $34million and $34million, respectively, are included in revenues and expenses for PECO. For thethree months ended March 31, 2013 and for theperiod March 12, 2012 through March 31, 2012, utility taxes of $22million and $3 million, respectively, are included in revenues and expenses for BGE.

(e)       The intersegment profit associated with Generation's sale of AECs to PECO is not eliminated in consolidation due to the recognition of intersegment profit in accordance with regulatory accounting guidance. See Note 3 – Regulatory Matters of the Exelon 2012 Form 10-K for additional information on AECs.For Exelon, these amounts are included in operating revenues in the Consolidated Statements of Operations.

Generation total revenues:
	2013						2012
	Revenues from external customers (a)		Intersegment revenues		Total Revenues		Revenues from external customers (a)		Intersegment revenues		Total Revenues
Mid-Atlantic	$	1,331	$	(8)	$	1,323	$	970	$	(4)	$	966
Midwest		1,181		7		1,188		1,215		4		1,219
New England		391		12		403		91		2		93
New York		175		(6)		169		45		(2)		43
ERCOT		293		0		293		128		-		128
Other Regions (b)		183		42		225		75		4		79
Total Revenues for Reportable Segments	$	3,554	$	47	$	3,601	$	2,524	$	4	$	2,528
Other (c)		(21)		(47)		(68)		219		(4)		215
Total Generation Consolidated Operating Revenues	$	3,533	$	0	$	3,533	$	2,743	$	-	$	2,743

(a)       Includes all electric sales to third parties and affiliated sales to ComEd, PECO and BGE.

(b)       Other regions include the South, West and Canada, which are not considered individually significant.

(c)Other represents activities not allocated to a region. See text above for a description of included activities. Also includes amortization of intangible assets related to commodity contracts recorded at fair value at the merger date of $174 million and $122 million, for the three months ended March 31, 2013 and 2012, respectively.

Generation total revenues net of purchased power and fuel expense:
	2013						2012
	RNF from external customers (a)		Intersegment RNF		Total RNF		RNF from external customers (a)		Intersegment RNF		Total RNF
Mid-Atlantic	$	852	$	(8)	$	844	$	774	$	(4)	$	770
Midwest		710		7		717		813		4		817
New England		18		12		30		37		2		39
New York		(16)		(6)		(22)		10		(2)		8
ERCOT		112		(11)		101		34		-		34
Other Regions (b)		10		35		45		10		4		14
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	1,686	$	29	$	1,715	$	1,678	$	4	$	1,682
Other (c)		(322)		(29)		(351)		21		(4)		17
Total Generation Revenues net of purchased power and fuel expense	$	1,364	$	0	$	1,364	$	1,699	$	-	$	1,699

(a)Includes purchases and sales from third parties and affiliated sales to ComEd, PECO and BGE.

(b)Other regions includes the South, West and Canada, which are not considered individually significant.

(c)Other represents activities not allocated to a region. See text above for a description of included activities. Also includes amortization of intangible assets related to commodity contracts recorded at fair value at the merger date of $174 million and $122 million, for the three months ended March 31, 2013 and 2012, respectively.