Segment Information (Exelon, Generation, ComEd and PECO)

9 Months Ended

Sep. 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 nine months ended September 30, 2012 and 2011 is as follows:

Three Months Ended September 30, 2012 and 2011

		Generation(a)		ComEd		PECO		BGE		Other(b)		Intersegment Eliminations		Exelon
Total revenues(c):
	2012	$	4,017	$	1,484	$	806	$	720	$	336	$	(798)	$	6,565
	2011		2,821		1,784		946		0		206		(503)		5,254
Intersegment revenues(d):
	2012	$	459	$	0	$	1	$	4	$	334	$	(798)	$	0
	2011		304		1		2		0		203		(503)		7
Net income (loss):
	2012	$	87	$	90	$	123	$	0	$	(3)	$	0	$	297
	2011		386		112		105		0		(1)		0		602
Total assets:
	September 30, 2012	$	41,090	$	22,471	$	9,661	$	7,504	$	10,150	$	(12,523)	$	78,353
	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 September 30, 2012 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. For the three months ended September 30, 2011 intersegment revenues for Generation include revenue from sales to PECO of $137 million in the Mid-Atlantic region, and sales to ComEd of $159 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 September 30, 2012 and 2011, utility taxes of $28 million and $7 million, respectively, are included in revenues and expenses for Generation. For the three months ended September 30, 2012 and 2011, utility taxes of $67million and $64million, respectively, are included in revenues and expenses for ComEd. For the three months ended September 30, 2012 and 2011, utility taxes of $40million and $50million, respectively, are included in revenues and expenses for PECO. For the three months ended September 30, 2012, utility taxes of $20million 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	$	1,428	$	(11)	$	1,417	$	1,032	$	-	$	1,032
Midwest		1,193		7		1,200		1,385		-		1,385
New England		390		1		391		2		-		2
New York		183		2		185		0		-		0
ERCOT		532		1		533		307		-		307
Other Regions (b)		317		12		329		77		-		77
Total Revenues for Reportable Segments	$	4,043	$	12	$	4,055	$	2,803	$	-	$	2,803
Other (c)		(35)		(3)		(38)		18		-		18
Total Generation Consolidated Operating Revenues	$	4,008	$	9	$	4,017	$	2,821	$	-	$	2,821

(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	$	919	$	(11)	$	908	$	835	$	-	$	835
Midwest		723		7		730		852		-		852
New England		80		1		81		1		-		1
New York		11		2		13		0		-		0
ERCOT		158		0		158		103		-		103
Other Regions (b)		30		12		42		(4)		-		(4)
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	1,921	$	11	$	1,932	$	1,787	$	-	$	1,787
Other (c)		(26)		(11)		(37)		(37)		-		(37)
Total Generation Revenues net of purchased power and fuel expense	$	1,895	$	0	$	1,895	$	1,750	$	-	$	1,750

Nine Months Ended September 30, 2012 and 2011

												Intersegment
		Generation (a)		ComEd		PECO		BGE(b)		Other(c)		Eliminations		Exelon
Total revenues(d):
	2012	$	10,509	$	4,154	$	2,396	$	1,388	$	1,049	$	(2,291)	$	17,205
	2011		7,919		4,694		2,942		0		579		(1,429)		14,705
Intersegment revenues(e):
	2012	$	1,233	$	2	$	3	$	7	$	1,050	$	(2,291)	$	4
	2011		856		2		4		0		576		(1,429)		9
Net income (loss):
	2012	$	419	$	219	$	300	$	(50)	$	(101)	$	0	$	787
	2011		1,325		295		314		0		(45)		0		1,889

__________

(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 nine months ended September 30, 2012 include revenue from sales to PECO of $407million and sales to BGE of $223million in the Mid-Atlantic region, and sales to ComEd of $631million in the Midwest region, net of $ (30) million related to theunrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation. For the nine months ended September 30, 2011 intersegment revenues for Generation include revenue from sales to PECO of $394million in the Mid-Atlantic region, and sales to ComEd of $450million in the Midwest region.

(b)       Amounts represent activityrecorded at BGE fromMarch 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, 2012 and 2011, utility taxes of $ 60 million and $ 20million, respectively, are included in revenues and expenses for Generation. For the nine months ended September 30, 2012 and 2011, utility taxes of $182million and $184million, respectively, are included in revenues and expenses for ComEd. For the nine months ended September 30, 2012 and 2011, utility taxes of $108million and $140million, respectively, are included in revenues and expenses for PECO. For the period of March 12, 2012 through September 30, 2012, utility taxes of $42million 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	$	3,832	$	(43)	$	3,789	$	3,102	$	-	$	3,102
Midwest		3,600		19		3,619		4,151		-		4,151
New England		776		36		812		8		-		8
New York		394		(22)		372		0		-		0
ERCOT		1,073		1		1,074		507		-		507
Other Regions (b)		611		40		651		169		-		169
Total Revenues for Reportable Segments	$	10,286	$	31	$	10,317	$	7,937	$	-	$	7,937
Other (c)		212		(20)		192		(18)		-		(18)
Total Generation Consolidated Operating Revenues	$	10,498	$	11	$	10,509	$	7,919	$	-	$	7,919

(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	$	2,605	$	(44)	$	2,561	$	2,567	$	-	$	2,567
Midwest		2,291		19		2,310		2,704		-		2,704
New England		144		36		180		6		-		6
New York		82		(22)		60		0		-		0
ERCOT		311		1		312		94		-		94
Other Regions (b)		49		41		90		(10)		-		(10)
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	5,482	$	31	$	5,513	$	5,361	$	-	$	5,361
Other (c)		9		(31)		(22)		(237)		-		(237)
Total Generation Revenues net of purchased power and fuel expense	$	5,491	$	0	$	5,491	$	5,124	$	-	$	5,124

(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.