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Segment Information (Exelon, Generation, ComEd, PECO and BGE)
 9 Months Ended
Sep. 30, 2013
Segment Information [Line Items]  
Segment Information (Exelon, Generation, ComEd, PECO and BGE)

20. 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.
  • Midwest represents 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, Michigan and Ohio not covered by PJM, and parts of Montana, Missouri and Kentucky.
  • New England represents the operations within ISO-NE covering the states of Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont.
  • New York represents 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 FRCC and 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, 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, and investments in energy-related proprietary technology are not allocated to regions. Further, Generation's compensation under the reliability-must-run rate schedule, results of operations from the Brandon Shores, Wagner, and C.P. Crane Maryland 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 nine months ended September 30, 2013 and 2012 is as follows:

Three Months Ended September 30, 2013 and 2012

                 Intersegment Eliminations   
  Generation (a) ComEd PECO BGE Other(b)   Exelon
Total revenues(c):
 2013$4,255 $1,156 $728 $737 $294 $(668) $6,502
 2012 4,031  1,484  806  720  336  (798)  6,579
Intersegment revenues(d):
 2013$373 $1 $1 $2 $294 $(669) $2
 2012 459  0  1  4  337  (798)  3
Net income (loss):
 2013$485 $126 $92 $53 $(20) $0 $736
 2012 87  90  123  0  (3)  0  297
Total assets:
 September 30, 2013$40,498 $23,686 $9,745 $7,657 $9,563 $(11,488) $79,661
 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, ERCOT and Other Regions. Intersegment revenues for Generation for the three months ended September 30, 2013 include revenue from sales to PECO of $ 82 million and sales to BGE of $ 144 million in the Mid-Atlantic region, and sales to ComEd of $ 143 million in the Midwest. For the three months ended September 30, 2012 intersegment revenues for Generation include revenue from sales to PECO of $171 million and sales to BGE of $120 million in the Mid-Atlantic region, and sales to ComEd of $180 million in the Midwest region, net of $15 million related to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation.

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

(c)       For the three months ended September 30, 2013 and 2012, utility taxes of $21 million and $28 million, respectively, are included in revenues and expenses for Generation. For the three months ended September 30, 2013 and 2012, utility taxes of $65 million and $67 million, respectively, are included in revenues and expenses for ComEd. For the three months ended September 30, 2013 and 2012, utility taxes of $33 million and $40 million, respectively, are included in revenues and expenses for PECO. For the three months ended September 30, 2013 and 2012, utility taxes of $20 million and $20 million, respectively, are included in revenues and expenses for BGE.

(d)       Intersegment revenues exclude sales to unconsolidated affiliate entities. The intersegment profit associated with the sale of certain products and services by and between Exelon's segments is not eliminated in consolidation due to the recognition of intersegment profit in accordance with regulatory accounting guidance. For Exelon, these amounts are included in operating revenues in the Consolidated Statements of Operations.

 

Generation total revenues (three months ended):
 2013 2012
 Revenues from external customers (a) Intersegment revenues  Total Revenues Revenues from external customers (a) Intersegment revenues Total Revenues
Mid-Atlantic$1,381 $10 $1,391 $1,428 $ (11) $1,417
Midwest 1,018  (5)  1,013  1,193   7  1,200
New England 341  (1)  340  390   1  391
New York 198  (14)  184  183   2  185
ERCOT 430  (3)  427  532   1  533
Other Regions (b) 278  (7)  271  317   12  329
Total Revenues for Reportable Segments 3,646  (20)  3,626  4,043  12  4,055
Other (c) 609  20  629  (12)   (12)  (24)
Total Generation Consolidated Operating Revenues$4,255 $0 $4,255 $4,031 $ - $4,031

 

(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 of $125 million and $404 million, for the three months ended September 30, 2013 and 2012, respectively, and elimination of intersegment revenues.

 

Generation total revenues net of purchased power and fuel expense (three months ended):
 2013 2012
 RNF from external customers (a) Intersegment RNF  Total RNF RNF from external customers (a) Intersegment RNF Total RNF
Mid-Atlantic$857 $7 $864 $919 $ (11) $908
Midwest 606  (5)  601  723   7  730
New England 52  10  62  80   1  81
New York 29  (38)  (9)  11   2  13
ERCOT 222  (78)  144  158   -  158
Other Regions (b) 116  (75)  41  30   12  42
Total Revenues net of purchased power and fuel expense for Reportable Segments 1,882  (179)  1,703  1,921  11  1,932
Other (c) 194  179  373  (12)   (11)  (23)
Total Generation Revenues net of purchased power and fuel expense$2,076 $0 $2,076 $1,909 $ - $1,909

 

(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 of $44 million and $257 million for the three months ended September 30, 2013 and 2012, respectively.

 

Nine Months Ended September 30, 2013 and 2012

                 Intersegment Eliminations   
  Generation (a) ComEd PECO BGE(b) Other(c)   Exelon
Total revenues(d):
 2013$11,858 $3,395 $2,295 $2,271 $909 $(2,003) $18,725
 2012 10,539  4,154  2,396  1,388  1,049  (2,291)  17,235
Intersegment revenues(e):
 2013$1,083 $2 $1 $10 $909 $(2,003) $2
 2012 1,233  2  3  7  1,050  (2,291)  4
Net income (loss):
 2013$795 $140 $292 $160 $(152) $0 $1,235
 2012 419  219  300  (50)  (101)  0  787

__________

(a)       Generation includes the six power marketing reportable segments shown below: Mid-Atlantic, Midwest, New England, New York, ERCOT and Other Regions. Intersegment revenues for Generation for the nine months ended September 30, 2013 include revenue from sales to PECO of $ 321 million and sales to BGE of $ 356 million in the Mid-Atlantic region, and sales to ComEd of $ 409 million in the Midwest region, net of $ 7 million related to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation. For the nine months ended September 30, 2012 intersegment revenues for Generation include revenue from sales to PECO of $407 million in the Mid-Atlantic region and sales to BGE of $223 million in the Mid-Atlantic region, and sales to ComEd of $631 million in the Midwest region, net of $30 million related to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation.

(b)       Amounts represent activity recorded at BGE from March 12, 2012, the closing date of the merger, through September 30, 2012.

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

(d)       For the nine months ended September 30, 2013 and 2012, utility taxes of $60 million and $60 million, respectively, are included in revenues and expenses for Generation. For the nine months ended September 30, 2013 and 2012, utility taxes of $182 million and $182 million, respectively, are included in revenues and expenses for ComEd. For the nine months ended September 30, 2013 and 2012, utility taxes of $97 million and $108 million, respectively, are included in revenues and expenses for PECO. For the nine months ended September 30, 2013 and period of March 12, 2012 through September 30, 2012, utility taxes of $62 million and $42 million, respectively, are included in revenues and expenses for BGE.

(e)       Intersegment revenues exclude sales to unconsolidated affiliate entities. The intersegment profit associated with the sale of certain products and services by and between Exelon's segments is not eliminated in consolidation due to the recognition of intersegment profit in accordance with regulatory accounting guidance. For Exelon, these amounts are included in operating revenues in the Consolidated Statements of Operations.

 

Generation total revenues (nine months ended):
 2013 2012
 Revenues from external customers (a) Intersegment revenues  Total Revenues Revenues from external customers (a) Intersegment revenues Total Revenues
Mid-Atlantic$3,932 $11 $3,943 $3,832 $(43) $3,789
Midwest 3,274  (3)  3,271  3,600  19  3,619
New England 942  (9)  933  776  36  812
New York 547  (20)  527  394  (22)  372
ERCOT 1,042  (8)  1,034  1,073  1  1,074
Other Regions (b) 708  29  737  611  40  651
Total Revenues for Reportable Segments 10,445  0  10,445  10,286  31  10,317
Other (c) 1,413  0  1,413  253  (31)  222
Total Generation Consolidated Operating Revenues$11,858 $0 $11,858 $10,539 $0 $10,539

 

(a)       Includes all wholesale and retail electric sales from 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 $603 million and $1,089 million, for the nine months ended September 30, 2013 and 2012, respectively, and elimination of intersegment revenues.

 

Generation total revenues net of purchased power and fuel expense (nine months ended):
 2013 2012
 RNF from external customers (a) Intersegment RNF  Total RNF RNF from external customers (a) Intersegment RNF Total RNF
Mid-Atlantic$2,477 $(2) $2,475 $2,605 $(44) $2,561
Midwest 2,002  (1)  2,001  2,291  19  2,310
New England 156  (14)  142  144  36  180
New York 14  (31)  (17)  82  (22)  60
ERCOT 477  (120)  357  311  1  312
Other Regions (b) 238  (91)  147  49  41  90
Total Revenues net of purchased power and fuel expense for Reportable Segments 5,364  (259)  5,105  5,482  31  5,513
Other (c) 200  259  459  39  (31)  8
Total Generation Revenues net of purchased power and fuel expense$5,564 $0 $5,564 $5,521 $0 $5,521

 

(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 $386 million and $793 million, for the nine months ended September 30, 2013 and 2012, respectively.