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Segment Information (Exelon, Generation, ComEd and PECO)
 12 Months Ended
Dec. 31, 2012
Segment Information [Abstract]  
Segment Information (Exelon, Generation, ComEd and PECO)

21. 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 our 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 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 years ended December 31, 2012, 2011 and 2010 is as follows:

                 Intersegment   
  Generation (a) ComEd PECO BGE(b) Other(c) Eliminations Exelon
Operating revenues(d):
 2012$ 14,437 $ 5,443 $ 3,186 $ 2,091 $ 1,396 $ (3,064) $ 23,489
 2011  10,447   6,056   3,720   -   830   (1,990)   19,063
 2010  10,025   6,204   5,519   -   755   (3,859)   18,644
Intersegment revenues(e):
 2012$ 1,702 $ 2 $ 3 $ 9 $ 1,381 $ (3,042) $ 55
 2011  1,161   2   5   -   831   (1,990)   9
 2010  3,102   2   5   -   756   (3,859)   6
Depreciation and amortization
 2012$ 768 $ 610 $ 217 $ 238 $ 46 $ 2 $ 1,881
 2011  570   554   202   -   21   -   1,347
 2010  474   516   1,060   -   25   -   2,075
Operating expenses(d):
 2012$ 13,226 $ 4,557 $ 2,563 $ 2,053 $ 1,662 $ (3,043) $ 21,018
 2011  7,571   5,074   3,065   -   863   (1,990)   14,583
 2010  6,979   5,148   4,858   -   792   (3,859)   13,918
Equity in earnings (losses) of unconsolidated affiliates
 2012$ (91) $ - $ - $ - $ - $ - $ (91)
 2011  (1)   -   -   -   -   -   (1)
 2010  -   -   -   -   -   -   -
Interest expense, net:
 2012$ 301 $ 307 $ 123 $ 111 $ 86 $ - $ 928
 2011  170   345   134   -   77   -   726
 2010  153   386   193   -   85   -   817
Income (loss) before income taxes:
 2012$ 1,058 $ 618 $ 508 $ (54) $ (276) $ (56) $ 1,798
 2011  2,827   666   535   -   (59)   (13)   3,956
 2010  3,150   694   476   -   (91)   (8)   4,221
Income taxes:
 2012$ 500 $ 239 $ 127 $ (23) $ (215) $ (1) $ 627
 2011  1,056   250   146   -   9   (4)   1,457
 2010  1,178   357   152   -   (27)   (2)   1,658
Net income (loss):
 2012$ 558 $ 379 $ 381 $ (31) $ (61) $ (55) $ 1,171
 2011  1,771   416   389   -   (68)   (9)   2,499
 2010  1,972   337   324   -   (64)   (6)   2,563
Capital expenditures:
 2012$ 3,554 $ 1,246 $ 422 $ 500 $ 67 $ - $ 5,789
 2011  2,491   1,028   481   -   42   -   4,042
 2010  1,883   962   545   -   14   (78)(f)  3,326
Total assets:
 2012$ 40,681 $ 22,905 $ 9,353 $ 7,499 $ 10,432 $ (12,316) $ 78,554
 2011  27,433   22,638   9,156   -   6,147   (10,379)   54,995

 

(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 year ended December 31, 2012 include revenue from sales to PECO of $543 million and sales to BGE of $322 million in the Mid-Atlantic region, and sales to ComEd of $795 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 years ended December 31, 2011 and 2010 intersegment revenues for Generation include revenue from sales to PECO of $508 million and $2,092 million, respectively, in the Mid-Atlantic region, and sales to ComEd of $653 million and $1,010 million, respectively, in the Midwest region.

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

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

(d)       For the years ended December 31, 2012, 2011 and 2010, utility taxes of $82 million, $27 million and $0 million, respectively, are included in revenues and expenses for Generation. For the years ended December 31, 2012, 2011 and 2010, utility taxes of $239 million, $243 million and $205 million, respectively, are included in revenues and expenses for ComEd. For the years ended December 31, 2012, 2011 and 2010, utility taxes of $141 million, $173 million and $271 million, respectively, are included in revenues and expenses for PECO. For the period of March 12, 2012 through December 31, 2012, utility taxes of $59 million 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 for additional information on AECs. For Exelon, these amounts are included in operating revenues in the Consolidated Statements of Operations.

(f)       Represents capital projects transferred from BSC to Generation, ComEd and PECO. These projects are shown as capital expenditures at Generation, ComEd and PECO and the capital expenditure is eliminated upon consolidation.

 

Generation total revenues:      
 201220112010
 Revenues from external customers (a)Intersegment revenues Total RevenuesRevenues from external customers (a)Intersegment revenuesTotal RevenuesRevenues from external customers (a)Intersegment revenuesTotal Revenues
Mid-Atlantic$5,082$(44)$5,038$4,052$ -$4,052$3,232$ -$3,232
Midwest 4,824 24 4,848 5,445  - 5,445 5,762  - 5,762
New England 1,048 45 1,093 11  - 11 14  - 14
New York 582 (25) 557 0  - 0 0  - 0
ERCOT 1,365 2 1,367 575  - 575 543  - 543
Other Regions (b) 755 78 833 201  - 201 149  - 149
Total Revenues for Reportable Segments$13,656$80$13,736$10,284$ -$10,284$9,700$ -$9,700
Other (c) 781 (80) 701 163  - 163 325  - 325
Total Generation Consolidated Operating Revenues$14,437$0$14,437$10,447$ -$10,447$10,025$ -$10,025

 

(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.

 

 

Generation total revenues net of purchased power and fuel expense:         
 2012 2011 2010
 RNF from external customers (a) Intersegment RNF  Total RNF RNF from external customers (a) Intersegment RNF Total RNF RNF from external customers (a) Intersegment RNF Total RNF
Mid-Atlantic$3,477 $(44) $3,433 $3,350 $ - $3,350 $2,501 $ - $2,501
Midwest 2,974  24  2,998  3,547   -  3,547  4,081   -  4,081
New England 151  45  196  9   -  9  11   -  11
New York 101  (25)  76  0   -  0  0   -  0
ERCOT 403  2  405  84   -  84  (66)   -  (66)
Other Regions (b) 53  78  131  (14)   -  (14)  (65)   -  (65)
Total Revenues net of purchased power and fuel expense for Reportable Segments$7,159 $80 $7,239 $6,976 $ - $6,976 $6,462 $ - $6,462
Other (c) 217  (80)  137  (118)   -  (118)  100   -  100
Total Generation Revenues net of purchased power and fuel expense$7,376 $0 $7,376 $6,858 $ - $6,858 $6,562 $ - $6,562

 

(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.