Segment Information (Exelon, Generation, ComEd and PECO)

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Segment Information (Exelon, Generation, ComEd and PECO)

18. 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 an aggregate of 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 Independent System Operator (ISO) / Regional Transmission Operator (RTO) and/or North American Electric Reliability Corporation (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 New York ISO, 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 Florida Reliability Coordinating Council (FRCC)and the remaining portions of the SERC Reliability Corporation (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 Southwest Power Pool (SPP), covering Kansas, Oklahoma, most of Nebraska and parts of New Mexico, Texas, Louisiana, Missouri, Mississippi and Arkansas.
• West represents operations in the Western Electric Coordinating Council (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 Alberta Electric Systems Operator (AESO), Ontario Independent Electricity System Operator (OIESO) and the Canadian portion of MISO.

Exelon and Generation do not use a measure of total assets in making decisions regarding allocating resources to or assessing the performance of these regional reportable segments. 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 internally generated energy 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 clean-coal assets held for sale; Brandon Shores, Wagner, and C.P. Crane, 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 six months ended June 30, 2012 and 2011 is as follows:

Three Months Ended June 30, 2012 and 2011

		Generation(a)		ComEd		PECO		BGE		Other(b)		Intersegment Eliminations		Exelon
Total revenues(c):
	2012	$	3,753	$	1,281	$	715	$	616	$	363	$	(774)	$	5,954
	2011		2,455		1,444		842		0		187		(432)		4,496
Intersegment revenues(d):
	2012	$	408	$	1	$	1	$	2	$	362	$	(774)	$	0
	2011		246		0		0		0		186		(432)		0
Net income (loss):
	2012	$	165	$	42	$	80	$	16	$	(14)	$	0	$	289
	2011		443		114		83		0		(19)		0		621
Total assets:
	June 30, 2012	$	41,087	$	22,585	$	9,204	$	7,200	$	10,163	$	(12,805)	$	77,434
	December 31, 2011		27,433		22,638		9,156		0		6,162		(10,394)		54,995

__________

(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 June 30, 2012 include revenue from sales to PECO of $125 million and sales to BGE of $84 million in the Mid-Atlantic region, and sales to ComEd of $203 million in the Midwest region, net of $4 million related to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation. For the three months ended June 30, 2011 intersegment revenues for Generation include revenue from sales to PECO of $118 million in the Mid-Atlantic region, and sales to ComEd of $128 million in the Midwest region.

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

(c)       For the three months ended June 30, 2012 and 2011, utility taxes of $19 million and $7 million, respectively, are included in revenues and expenses for Generation. For the three months ended June 30, 2012 and 2011, utility taxes of $54million and $57million, respectively, are included in revenues and expenses for ComEd. For the three months ended June 30, 2012 and 2011, utility taxes of $34million and $42million, respectively, are included in revenues and expenses for PECO. For the three months ended June 30, 2012, utility taxes of $19million are included in revenues and expenses for BGE.

(d)       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 2 of the Exelon 2011 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:
	2012						2011
	Revenues from external customers (a)		Intersegment revenues		Total Revenues		Revenues from external customers (a)		Intersegment revenues		Total Revenues
Mid-Atlantic	$	1,433	$	(28)	$	1,405	$	994	$	-	$	994
Midwest		1,193		8		1,201		1,339		-		1,339
New England		296		32		328		3		-		3
New York		166		(22)		144		0		-		0
ERCOT		412		1		413		101		-		101
Other Regions (b)		219		25		244		53		-		53
Total Revenues for Reportable Segments	$	3,719	$	16	$	3,735	$	2,490	$	-	$	2,490
Other (c)		34		(13)		21		(35)		-		(35)
Total Generation Consolidated Operating Revenues	$	3,753	$	3	$	3,756	$	2,455	$	-	$	2,455

(a)       Includes all wholesale and retail electric 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 and includes retail and wholesale gas, upstream natural gas, proprietary trading, demand response, energy efficiency, the design, construction, and operation of renewable energy, heating, cooling, and cogeneration facilities, home improvements, sales of electric and gas appliances, servicing of heating, air conditioning, plumbing, electrical, and indoor quality systems, mark-to-market activities associated with Generation's economic hedging activities. In addition, includes generation under the reliability-must-run rate schedule and generation of BrandonShores, H.A. Wagner, and C.P. Crane, the generating facilities planned for divestiture as a result of the Exelon and Constellation merger. Also includes amortization of intangible assets related to commodity contracts recorded at fair value at the merger date.

Generation total revenues net of purchased power and fuel expense:
	2012						2011
	RNF from external customers (a)		Intersegment RNF		Total RNF		RNF from external customers (a)		Intersegment RNF		Total RNF
Mid-Atlantic	$	911	$	(28)	$	883	$	819	$	-	$	819
Midwest		756		8		764		887		-		887
New England		28		32		60		2		-		2
New York		61		(22)		39		0		-		0
ERCOT		118		1		119		(14)		-		(14)
Other Regions (b)		9		25		34		3		-		3
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	1,883	$	16	$	1,899	$	1,697	$	-	$	1,697
Other (c)		18		(16)		2		(83)		-		(83)
Total Generation Revenues net of purchased power and fuel expense	$	1,901	$	0	$	1,901	$	1,614	$	-	$	1,614

(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 and includes retail and wholesale gas, upstream natural gas, proprietary trading, demand response, energy efficiency, the design, construction, and operation of renewable energy, heating, cooling, and cogeneration facilities, home improvements, sales of electric and gas appliances, servicing of heating, air conditioning, plumbing, electrical, and indoor quality systems, mark-to-market activities associated with Generation's economic hedging activities. In addition, includes generation under the reliability-must-run rate schedule and generation of BrandonShores, H.A. Wagner, and C.P. Crane, the generating facilities planned for divestiture as a result of the Exelon and Constellation merger. Also includes amortization of intangible assets related to commodity contracts recorded at fair value at the merger date.

Six Months Ended June 30, 2012 and 2011

												Intersegment
		Generation (a)		ComEd		PECO		BGE(b)		Other(c)		Eliminations		Exelon
Total revenues(d):
	2012	$	6,492	$	2,670	$	1,590	$	668	$	714	$	(1,494)	$	10,640
	2011		5,098		2,910		1,996		0		373		(926)		9,451
Intersegment revenues(e):
	2012	$	774	$	1	$	2	$	3	$	715	$	(1,494)	$	1
	2011		552		1		2		0		373		(926)		2
Net income (loss):
	2012	$	332	$	129	$	177	$	(50)	$	(98)	$	0	$	490
	2011		938		183		210		0		(43)		0		1,288

__________

(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 six months ended June 30, 2012 include revenue from sales to PECO of $235million andsales to BGE of $103million in the Mid-Atlantic region, and sales to ComEd of $451million 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. For the six months ended June 30, 2011 intersegment revenues for Generation include revenue from sales to PECO of $261million in the Mid-Atlantic region, and sales to ComEd of $291million in the Midwest region.

(b)       Amounts represent activityrecorded at BGE fromMarch 12, 2012, the closing date of the merger, through June 30, 2012.

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

(d)       For the six months ended June 30, 2012 and 2011, utility taxes of $ 32 million and $ 13million, respectively, are included in revenues and expenses for Generation. For the six months ended June 30, 2012 and 2011, utility taxes of $115million and $121million, respectively, are included in revenues and expenses for ComEd. For the six months ended June 30, 2012 and 2011, utility taxes of $68million and$90million, respectively, are included in revenues and expenses for PECO. For the period of March 12, 2012 through June 30, 2012, utility taxes of $22million 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 2 of the Exelon 2011 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:
	2012						2011
	Revenues from external customers (a)		Intersegment revenues		Total Revenues		Revenues from external customers (a)		Intersegment revenues		Total Revenues
Mid-Atlantic	$	2,404	$	(33)	$	2,371	$	2,070	$	-	$	2,070
Midwest		2,407		12		2,419		2,766		-		2,766
New England		386		35		421		6		-		6
New York		211		(24)		187		0		-		0
ERCOT		541		0		541		200		-		200
Other Regions (b)		294		29		323		92		-		92
Total Revenues for Reportable Segments	$	6,243	$	19	$	6,262	$	5,134	$	-	$	5,134
Other (c)		249		(16)		233		(36)		-		(36)
Total Generation Consolidated Operating Revenues	$	6,492	$	3	$	6,495	$	5,098	$	-	$	5,098

(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 and includes retail and wholesale gas, upstream natural gas, proprietary trading, demand response, energy efficiency, the design, construction, and operation of renewable energy, heating, cooling, and cogeneration facilities, home improvements, sales of electric and gas appliances, servicing of heating, air conditioning, plumbing, electrical, and indoor quality systems, mark-to-market activities associated with Generation's economic hedging activities. In addition, includes generation under the reliability-must-run rate schedule and generation of BrandonShores, H.A. Wagner, and C.P. Crane, the generating facilities planned for divestiture as a result of the Exelon and Constellation merger. Also includes amortization of intangible assets related to commodity contracts recorded at fair value at the merger date.

Generation total revenues net of purchased power and fuel expense:
	2012						2011
	RNF from external customers (a)		Intersegment RNF		Total RNF		RNF from external customers (a)		Intersegment RNF		Total RNF
Mid-Atlantic	$	1,686	$	(33)	$	1,653	$	1,732	$	-	$	1,732
Midwest		1,569		12		1,581		1,851		-		1,851
New England		64		35		99		5		-		5
New York		71		(24)		47		0		-		0
ERCOT		153		0		153		(9)		-		(9)
Other Regions (b)		19		29		48		(5)		-		(5)
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	3,562	$	19	$	3,581	$	3,574	$	-	$	3,574
Other (c)		34		(19)		15		(200)		-		(200)
Total Generation Revenues net of purchased power and fuel expense	$	3,596	$	0	$	3,596	$	3,374	$	-	$	3,374

(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 and includes retail and wholesale gas, upstream natural gas, proprietary trading, demand response, energy efficiency, the design, construction, and operation of renewable energy, heating, cooling, and cogeneration facilities, home improvements, sales of electric and gas appliances, servicing of heating, air conditioning, plumbing, electrical, and indoor quality systems, mark-to-market activities associated with Generation's economic hedging activities. In addition, includes generation under the reliability-must-run rate schedule and generation of BrandonShores, H.A. Wagner, and C.P. Crane, the generating facilities planned for divestiture as a result of the Exelon and Constellation merger. Also includes amortization of intangible assets related to commodity contracts recorded at fair value at the merger date.