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Debt and Credit Agreements (All Registrants)
 9 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Debt and Credit Agreements (All Registrants) Debt and Credit Agreements (All Registrants)Short-Term Borrowings
Exelon Corporate, ComEd, and BGE meet their short-term liquidity requirements primarily through the issuance of commercial paper. Generation and PECO meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the Exelon intercompany money pool. Pepco, DPL, and ACE meet their short-term liquidity requirements primarily through the issuance of commercial paper and borrowings from the PHI intercompany money pool. PHI Corporate meets its short-term liquidity requirements primarily through the issuance of short-term notes and the Exelon intercompany money pool. The Registrants may use their respective credit facilities for general corporate purposes, including meeting short-term funding requirements and the issuance of letters of credit.
Commercial Paper
The following table reflects the Registrants' commercial paper programs as of September 30, 2020 and December 31, 2019. PECO had no commercial paper borrowings as of both September 30, 2020 and December 31, 2019.
Outstanding Commercial
Paper as of
Average Interest Rate on
Commercial Paper Borrowings as of
Commercial Paper IssuerSeptember 30, 2020December 31, 2019September 30, 2020December 31, 2019
Exelon(a)
$141 $870 0.16 %2.25 %
Generation— 320 — %1.84 %
ComEd141 130 0.16 %2.38 %
BGE— 76 — %2.46 %
PHI(b)
— 208 — %N/A
PEPCO— 82 — %2.56 %
DPL— 56 — %2.02 %
ACE— 70 — %2.43 %
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(a)Includes outstanding commercial paper at Exelon Corporate of $136 million with average interest rates on commercial paper borrowings of 1.92% at December 31, 2019. Exelon Corporate had no outstanding commercial paper borrowings as of September 30, 2020.
(b)Includes the consolidated amounts of Pepco, DPL, and ACE.
On March 19, 2020, Generation borrowed $1.5 billion on its revolving credit facility due to disruptions in the commercial paper markets as a result of COVID-19. The funds were used to refinance commercial paper. Generation repaid the $1.5 billion borrowed on the revolving credit facility on April 3, 2020. As of September 30, 2020, the available capacity on Generation’s revolving credit facility was $4.9 billion. See Note 16— Debt and Credit Agreements of the Exelon 2019 Form 10-K for additional information on the Registrants’ credit facilities.
Short-Term Loan Agreements
On March 23, 2017, Exelon Corporate entered into a term loan agreement for $500 million. The loan agreement was renewed on March 19, 2020 and will expire on March 18, 2021. Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate equal to LIBOR plus 0.65% and all indebtedness thereunder is unsecured. The loan agreement is reflected in Exelon's Consolidated Balance Sheet within Short-term borrowings.
On March 19, 2020, Generation entered into a term loan agreement for $200 million. The loan agreement has an expiration of March 18, 2021. Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate equal to LIBOR plus 0.50% and all indebtedness thereunder is unsecured. The loan agreement is reflected in Generation's Consolidated Balance Sheet within Short-term borrowings.
On March 31, 2020, Generation entered into a term loan agreement for $300 million. The loan agreement has an expiration of March 30, 2021. Pursuant to the loan agreement, loans made thereunder bear interest at a variable rate equal to LIBOR plus 0.75% and all indebtedness thereunder is unsecured. The loan agreement is reflected in Generation's Consolidated Balance Sheet within Short-term borrowings.
Revolving Credit Agreements
On April 24, 2020, Exelon Corporate entered into a credit agreement establishing a $550 million 364-day revolving credit facility at a variable interest rate of LIBOR plus 1.75%. This facility will be used by Exelon as an additional source of short-term liquidity as needed.
Bilateral Credit Agreements
On May 15, 2020, Generation entered into a credit agreement establishing a $100 million bilateral credit facility. This facility will solely be used by Generation to issue letters of credit, and the maturity date is automatically renewed based on the contingency standards set within the agreement.
During the second and third quarters of 2020, CENG drew on its bilateral credit facility. As of September 30, 2020, there was $40 million outstanding at this facility. The bilateral credit facility with CENG is incorporated within Generation, and supports the issuance of letters of credit and funding for working capital.
Long-Term Debt
Issuance of Long-Term Debt
During the nine months ended September 30, 2020, the following long-term debt was issued:
CompanyTypeInterest RateMaturityAmountUse of Proceeds
ExelonNotes4.05 %April 15, 2030$1,250 Repay existing indebtedness and for general corporate purposes.
ExelonNotes4.70 %April 15, 2050750 Repay existing indebtedness and for general corporate purposes.
GenerationSenior Notes3.25 %June 1, 2025900 Repay existing indebtedness and for general corporate purposes.
Generation
Energy Efficiency Project Financing(a)
3.95 %December 31, 20203 Funding to install energy conservation measures for the Fort Meade project.
Generation
Energy Efficiency Project Financing(a)
2.53 %April 30, 20212 Funding to install energy conservation measures for the Fort AP Hill project.
ComEdFirst Mortgage Bonds, Series 1282.20 %March 1, 2030350 Repay a portion of outstanding commercial paper obligations and fund other general corporate purposes.
ComEdFirst Mortgage Bonds, Series 1293.00 %March 1, 2050650 Repay a portion of outstanding commercial paper obligations and to fund general corporate purposes.
PECOFirst and Refunding Mortgage Bonds2.80 %June 15, 2050350 Funding for general corporate purposes.
BGESenior Notes 2.90 %June 15, 2050400 Repay commercial paper obligations and for general corporate purposes.
PepcoFirst Mortgage Bonds2.53 %February 25, 2030150 Repay existing indebtedness and for general corporate purposes.
PepcoFirst Mortgage Bonds3.28 %September 23, 2050150 Repay existing indebtedness and for general corporate purposes.
DPLFirst Mortgage Bonds2.53 %June 9, 2030100 Repay existing indebtedness and for general corporate purposes.
DPL(b)
Tax-Exempt Bonds1.05 %January 1, 203178 Refinance existing indebtedness.
ACETax-Exempt First Mortgage Bonds2.25 %June 1, 202923 Refinance existing indebtedness.
ACEFirst Mortgage Bonds3.24 %June 9, 2050100 Repay existing indebtedness and for general corporate purposes.
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(a)For Energy Efficiency Project Financing, the maturity dates represent the expected date of project completion, upon which the respective customer assumes the outstanding debt.
(b)The bonds have a 1.05% interest rate through July 2025.
Debt Covenants
As of September 30, 2020, the Registrants are in compliance with debt covenants.
Nonrecourse Debt
Exelon and Generation have issued nonrecourse debt financing. Borrowings under these agreements are secured by the assets and equity of each respective project. The lenders do not have recourse against Exelon or Generation in the event of a default.
Antelope Valley Solar Ranch One.  In December 2011, the DOE Loan Programs Office issued a guarantee for up to $646 million for a nonrecourse loan from the Federal Financing Bank to support the financing of the construction of the Antelope Valley facility. The project became fully operational in 2014. The loan will mature on January 5, 2037. As of September 30, 2020, approximately $470 million was outstanding. In addition, Generation has issued letters of credit to support its equity investment in the project. As of September 30, 2020, Generation had $37 million in letters of credit outstanding related to the project. In 2017, Generation’s interests in Antelope Valley were also contributed to and are pledged as collateral for the EGR IV financing structure referenced below.
Antelope Valley sells all of its output to PG&E through a PPA. On January 29, 2019, PG&E filed for protection under Chapter 11 of the U.S. Bankruptcy Code, which created an event of default for Antelope Valley’s nonrecourse debt that provided the lender with a right to accelerate amounts outstanding under the loan such that they would become immediately due and payable. As a result of the event of default and in the absence of a waiver from the lender foregoing their acceleration rights, the debt was reclassified as current in Exelon’s and Generation’s Consolidated Balance Sheets in the first quarter of 2019. Further, distributions from Antelope Valley to EGR IV were suspended.
The United States Bankruptcy Court entered an order on June 20, 2020 confirming PG&E’s plan of reorganization. On July 1, 2020 the plan became effective, and PG&E emerged from bankruptcy. On July 21, 2020, Antelope Valley received a waiver from the DOE for the event of default and, as such, distributions from Antelope Valley to EGR IV were permitted and the debt was classified as noncurrent as of June 30, 2020. The debt continues to be presented as noncurrent as of September 30, 2020.
See Note 8 — Asset Impairments for additional information.
ExGen Renewables IV.  In November 2017, EGR IV, an indirect subsidiary of Exelon and Generation, entered into an $850 million nonrecourse senior secured term loan credit facility agreement. Generation’s interests in EGRP, Antelope Valley, SolGen, and Albany Green Energy were all contributed to and are pledged as collateral for this financing. The loan is scheduled to mature on November 28, 2024. As of September 30, 2020, approximately $710 million was outstanding.
See Note 16— Debt and Credit Agreements of the Exelon 2019 Form 10-K for additional information on nonrecourse debt.