Segment Information (Exelon, Generation, ComEd, PECO and BGE)

6 Months Ended

Jun. 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.
• 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 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 FRCCand 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, are not allocated to regions. Further, Generation's compensation under the reliability-must-run rate schedule, results of operations from the BrandonShores, Wagner, and C.P. CraneMaryland 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 six months ended June 30, 2013 and 2012 is as follows:

Three Months Ended June 30, 2013 and 2012

		Generation(a)		ComEd		PECO		BGE		Other(b)		Intersegment Eliminations		Exelon
Total revenues(c):
	2013	$	4,070	$	1,080	$	672	$	653	$	297	$	(631)	$	6,141
	2012		3,765		1,281		715		616		363		(774)		5,966
Intersegment revenues:
	2013	$	329	$	0	$	0	$	4	$	298	$	(631)	$	0
	2012		408		1		1		2		362		(774)		0
Net income (loss):
	2013	$	328	$	96	$	78	$	25	$	(30)	$	0	$	497
	2012		165		42		80		16		(14)		0		289
Total assets:
	June 30, 2013	$	39,678	$	23,349	$	9,407	$	7,968	$	9,763	$	(11,745)	$	78,420
	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, ERCOTand Other Regions. Intersegment revenues for Generation for the three months ended June 30, 2013 include revenue from sales to PECO of $ 97 million and sales to BGE of $ 99 million in the Mid-Atlantic region, and sales to ComEd of $ 121 million in the Midwest region, net of $ 10 million related to the unrealized mark-to-market gains related to the ComEd swap, which eliminate upon consolidation. For the three months ended June 30, 2012 intersegment revenues for Generation 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.

(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, 2013 and 2012, utility taxes of $18 million and $19 million, respectively, are included in revenues and expenses for Generation. For the three months ended June 30, 2013 and 2012, utility taxes of $56million and $54million, respectively, are included in revenues and expenses for ComEd. For the three months ended June 30, 2013 and 2012, utility taxes of $31million and $34million, respectively, are included in revenues and expenses for PECO. For thethree months ended June 30, 2013 and2012, utility taxes of $19million and $19 million, respectively, are included in revenues and expenses for BGE.

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	$	1,220	$	9	$	1,229	$	1,433	$	(28)	$	1,405
Midwest		1,076		(5)		1,071		1,193		8		1,201
New England		209		(20)		189		296		32		328
New York		175		(1)		174		166		(22)		144
ERCOT		319		(4)		315		412		1		413
Other Regions (b)		246		(6)		240		219		25		244
Total Revenues for Reportable Segments	$	3,245	$	(27)	$	3,218	$	3,719	$	16	$	3,735
Other (c)		825		27		852		46		(16)		30
Total Generation Consolidated Operating Revenues	$	4,070	$	0	$	4,070	$	3,765	$	-	$	3,765

(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 $234 millionand $534 million, for the three months ended June 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	$	770	$	(2)	$	768	$	911	$	(28)	$	883
Midwest		687		(3)		684		756		8		764
New England		85		(35)		50		28		32		60
New York		0		14		14		61		(22)		39
ERCOT		143		(31)		112		118		1		119
Other Regions (b)		111		(52)		59		9		25		34
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	1,796	$	(109)	$	1,687	$	1,883	$	16	$	1,899
Other (c)		328		109		437		30		(16)		14
Total Generation Revenues net of purchased power and fuel expense	$	2,124	$	0	$	2,124	$	1,913	$	-	$	1,913

(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 $167 million and $414 million for the three months ended June 30, 2013 and 2012, respectively.

Six Months Ended June 30, 2013 and 2012

												Intersegment Eliminations
		Generation (a)		ComEd		PECO		BGE(b)		Other(c)					Exelon
Total revenues(d):
	2013	$	7,603	$	2,239	$	1,567	$	1,533	$	615	$	(1,334)	$	12,223
	2012		6,508		2,670		1,590		668		714		(1,494)		10,656
Intersegment revenues(e):
	2013	$	710	$	1	$	0	$	8	$	615	$	(1,334)	$	0
	2012		774		1		2		3		715		(1,494)		1
Net income (loss):
	2013	$	310	$	14	$	200	$	106	$	(132)	$	0	$	498
	2012		332		129		177		(49)		(99)		0		490

__________

(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 six months ended June 30, 2013 include revenue from sales to PECO of $ 238 million and sales to BGE of $ 212 million in the Mid-Atlantic region, and sales to ComEd of $ 266 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 six months ended June 30, 2012 intersegment revenues for Generation include revenue from sales to PECO of $235 million in the Mid-Atlantic region and sales to BGE of $103 million in the Mid-Atlantic region, and sales to ComEd of $451 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)       Amounts represent activity recorded at BGE from March 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, 2013 and 2012, utility taxes of $ 39 million and $ 32 million, respectively, are included in revenues and expenses for Generation. For the six months ended June 30, 2013 and 2012, utility taxes of $117 million and $115 million, respectively, are included in revenues and expenses for ComEd. For the six months ended June 30, 2013 and 2012, utility taxes of $64 million and $68 million, respectively, are included in revenues and expenses for PECO. For the six months ended June 30, 2013 and period of March 12, 2012 through June 30, 2012, utility taxes of $41 million and $22 million, respectively, 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 – Regulatory Matters of the Exelon 2012 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 (six months ended):
	2013						2012
	Revenues from external customers (a)		Intersegment revenues		Total Revenues		Revenues from external customers (a)		Intersegment revenues		Total Revenues
Mid-Atlantic	$	2,551	$	1	$	2,552	$	2,404	$	(33)	$	2,371
Midwest		2,257		2		2,259		2,407		12		2,419
New England		600		(8)		592		386		35		421
New York		350		(7)		343		211		(24)		187
ERCOT		612		(4)		608		541		0		541
Other Regions (b)		429		36		465		294		29		323
Total Revenues for Reportable Segments	$	6,799	$	20	$	6,819	$	6,243	$	19	$	6,262
Other (c)		804		(20)		784		265		(19)		246
Total Generation Consolidated Operating Revenues	$	7,603	$	0	$	7,603	$	6,508	$	0	$	6,508

(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 $478 million and $686 million, for the six months ended June 30, 2013 and 2012, respectively, and elimination of intersegment revenues.

Generation total revenues net of purchased power and fuel expense (six months ended):
	2013						2012
	RNF from external customers (a)		Intersegment RNF		Total RNF		RNF from external customers (a)		Intersegment RNF		Total RNF
Mid-Atlantic	$	1,622	$	(10)	$	1,612	$	1,686	$	(33)	$	1,653
Midwest		1,397		4		1,401		1,569		12		1,581
New England		103		(23)		80		64		35		99
New York		(16)		8		(8)		71		(24)		47
ERCOT		255		(42)		213		153		0		153
Other Regions (b)		122		(17)		105		19		29		48
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	3,483	$	(80)	$	3,403	$	3,562	$	19	$	3,581
Other (c)		6		80		86		50		(19)		31
Total Generation Revenues net of purchased power and fuel expense	$	3,489	$	0	$	3,489	$	3,612	$	0	$	3,612

(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 $341 million and $537million, for the six months ended June 30, 2013 and 2012, respectively.