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Property, Plant and Equipment (Exelon, Generation, ComEd, PECO and BGE)
 12 Months Ended
Dec. 31, 2013
Property, Plant and Equipment Disclosure [Line Items]  
Property, Plant and Equipment (Exelon, Generation, ComEd, PECO and BGE)

7. Property, Plant and Equipment (Exelon, Generation, ComEd, PECO and BGE)

 

Exelon

 

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2013 and 2012:

  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—transmission and distribution5-90 $28,123 $26,576
Electric—generation1-52  20,420  19,004
Gas—transportation and distribution5-90  3,296  3,108
Common—electric and gas5-50   1,101   1,029
Nuclear fuel (a)1-8  5,196  4,815
Construction work in progressN/A  1,890  1,926
Other property, plant and equipment (b)1-51   1,017  912
           
 Total property, plant and equipment     61,043  57,370
 Less: accumulated depreciation (c)     13,713  12,184
           
Property, plant and equipment, net    $47,330 $45,186

 

(a) Includes nuclear fuel that is in the fabrication and installation phase of $947 million and $894 million at December 31, 2013 and 2012, respectively.

(b)       Includes Generation's buildings under capital lease with a net carrying value of $23 million and $20 million at December 31, 2013 and 2012, respectively. The original cost basis of the buildings was $59 million and total accumulated amortization was $36 million and $33 million as of December 31, 2013 and 2012, respectively. Also includes ComEd's buildings under capital lease with a net carrying value of $8 million and $0 million at December 31, 2013 and 2012, respectively. The original cost basis of the buildings was $8 million and total accumulated amortization was $0 million and $0 million as of December 31, 2013 and 2012, respectively. Includes land held for future use and non utility property at PECO and BGE. These balances also include capitalized acquisition, development and exploration costs related to oil and gas production activities at Generation.

(c)       Includes accumulated amortization of nuclear fuel in the reactor core at Generation of $2,371 million and $2,078 million as of December 31, 2013 and 2012, respectively.

 

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.

 

 

(a) Includes nuclear fuel that is in the fabrication and installation phase of $947 million and $894 million at December 31, 2013 and 2012, respectively.

(b)       Includes Generation's buildings under capital lease with a net carrying value of $23 million and $20 million at December 31, 2013 and 2012, respectively. The original cost basis of the buildings was $59 million and total accumulated amortization was $36 million and $33 million as of December 31, 2013 and 2012, respectively. Also includes ComEd's buildings under capital lease with a net carrying value of $8 million and $0 million at December 31, 2013 and 2012, respectively. The original cost basis of the buildings was $8 million and total accumulated amortization was $0 million and $0 million as of December 31, 2013 and 2012, respectively. Includes land held for future use and non utility property at PECO and BGE. These balances also include capitalized acquisition, development and exploration costs related to oil and gas production activities at Generation.

(c)       Includes accumulated amortization of nuclear fuel in the reactor core at Generation of $2,371 million and $2,078 million as of December 31, 2013 and 2012, respectively.

 

Average Service Life Percentage by Asset Category2013 2012 2011
         
Electric—transmission and distribution2.91% 2.76% 2.59%
Electric—generation3.35% 3.15% 3.12%
Gas2.06% 2.03% 1.73%
Common—electric and gas7.53% 7.61% 8.05%

Generation

 

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2013 and 2012:

 

  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—generation1-52 $20,420 $19,004
Nuclear fuel (a)1-8  5,196  4,815
Construction work in progressN/A  1,129  1,352
Other property, plant and equipment (b)1-51  400  374
           
 Total property, plant and equipment     27,145  25,545
 Less: accumulated depreciation (c)     7,034  6,014
           
Property, plant and equipment, net    $20,111 $19,531

 

(a)       Includes nuclear fuel that is in the fabrication and installation phase of $947 million and $894 million at December 31, 2013 and 2012, respectively.

(b)       Includes buildings under capital lease with a net carrying value of $23 million and $20 million at December 31, 2013 and 2012, respectively. The original cost basis of the buildings was $59 million and total accumulated amortization was $36 million and $33 million as of December 31, 2013 and 2012, respectively. These balances also include capitalized acquisition, development and exploration costs related to oil and gas production activities.

(c)       Includes accumulated amortization of nuclear fuel in the reactor core of $2,371 million and $2,078 million as of December 31, 2013 and 2012, respectively.

 

The annual depreciation provisions as a percentage of average service life for electric generation assets were 3.35%, 3.15% and 3.12% for the years ended December 31, 2013, 2012 and 2011, respectively.

 

License Renewals. Generation's depreciation provisions are based on the estimated useful lives of its generating stations, which assume the renewal of the licenses for all nuclear generating stations (except for Oyster Creek) and the hydroelectric generating stations. As a result, the receipt of license renewals has no impact on the Consolidated Statements of Operations. See Note 3—Regulatory Matters for additional information regarding license renewals.

 

Plant Retirements

 

Schuylkill Station and Riverside Station. On October 31, 2012, Generation notified PJM of its intention to permanently retire Schuylkill Generating Station Unit 1 by February 1, 2013, and Riverside Generating Station Unit 6 by June 1, 2014. Schuylkill Unit 1 is a 166 MW peaking oil unit located in Philadelphia, Pennsylvania, which was placed in service in 1958. Riverside Unit 6 is a 115 MW peaking gas/kerosene unit that was placed in service in 1970, located in Baltimore, Maryland. On December 1, 2013, Generation notified PJM of its intention to permanently retire Riverside Generating Station Unit 4 by June 1, 2016. Riverside Unit 4 is a 74 MW intermediate gas unit that was placed in service in 1951 also located in Baltimore, Maryland. The units are being retired because they are no longer economic to operate due to their age, relatively high capital and operating costs and declining revenue expectations. On November 30, 2012, PJM notified Generation that it did not identify any transmission system reliability issues associated with the proposed Schuylkill Unit 1 retirement date, and as a result, Schuylkill Unit 1 was retired on January 1, 2013. On January 7, 2013 and December 23, 2013, PJM notified Generation that it did not identify any transmission system reliability issues associated with the retirements of Riverside Units 6 and 4, respectively. The early retirements will not have a material impact on Generation or Exelon's results of operations, cash flows or financial position.

 

Eddystone Station and Cromby Station. In December 2009, Exelon announced its intention to permanently retire three coal-fired generating units and one oil/gas-fired generating unit, effective May 31, 2011, in response to the economic outlook related to the continued operation of these four units. However, PJM determined that transmission reliability upgrades would be necessary to alleviate reliability impacts and that those upgrades would be completed in a manner that will permit Generation's retirement of two of the units on that date and two of the units subsequent to May 31, 2011. On May 31, 2011, Cromby Generating Station (Cromby) Unit 1 and Eddystone Generating Station (Eddystone) Unit 1 were retired. On May 27, 2011, the FERC approved a settlement providing for a reliability-must-run rate schedule, which defined compensation to be paid to Generation for continuing to operate Cromby Unit 2 and Eddystone Unit 2. The monthly fixed-cost recovery during the reliability-must-run period for Eddystone Unit 2 was approximately $6 million, and covered operating costs, plus a return on net assets, of the two units during the reliability-must-run period. In addition, Generation was reimbursed for variable costs, including fuel, emissions costs, chemicals, auxiliary power and for project investment costs during the reliability-must-run period. Eddystone Unit 2 and Cromby Unit 2 operated under the reliability-must-run agreement from June 1, 2011 until their respective retirement dates, Cromby Unit 2 on December 31, 2011 and Eddystone Unit 2 on May 31, 2012.

 

During the years ended December 31, 2013, 2012, and 2011, Generation incurred $1 million, $11 million, and $2 million of shut down costs reflected within Operating and maintenance expense in Exelon's and Generation's Consolidated Statements of Operations and Comprehensive Income. Expense for the write down of inventory was not material for the years ended December 31, 2013, 2012 and 2011.

 

ComEd

 

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2013 and 2012:

 

  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—transmission and distribution5-75 $17,334 $16,480
Construction work in progressN/A  456  294
Other property, plant and equipment (a)50  60  50
           
 Total property, plant and equipment     17,850  16,824
 Less: accumulated depreciation     3,184  2,998
           
Property, plant and equipment, net    $14,666 $13,826

 

(a)       Includes buildings under capital lease with a net carrying value of $8 million and $0 million at December 31, 2013 and 2012, respectively. The original cost basis of the buildings was $8 million and total accumulated amortization was $0 million and $0 million as of December 31, 2013 and 2012, respectively.

 

The annual depreciation provisions as a percentage of average service life for electric transmission and distribution assets were 2.97%, 2.79% and 2.67% for the years ended December 31, 2013, 2012 and 2011, respectively.

 

PECO

 

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2013 and 2012:

 

  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—transmission and distribution5-65 $6,669 $6,355
Gas—transportation and distribution5-70  1,932  1,859
Common—electric and gas5-50   600   568
Construction work in progressN/A  101  76
Other property, plant and equipment (a) 50    17   17
           
 Total property, plant and equipment     9,319  8,875
 Less: accumulated depreciation     2,935  2,797
           
Property, plant and equipment, net    $6,384 $6,078

  

(a)       Represents land held for future use and non utility property.

 

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.

Average Service Life Percentage by Asset Category2013  2012  2011 
         
Electric—transmission and distribution2.73% 2.51% 2.33%
Gas1.79% 1.77% 1.73%
Common—electric and gas6.65% 7.54% 8.05%

BGE

 

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2013 and 2012:

 

  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—transmission and distribution5-90 $6,100 $5,767
Gas—distribution5-90  1,660  1,548
Common—electric and gas5-40  578  554
Construction work in progressN/A  196  193
Other property, plant and equipment (a)20  32  31
          
Total property, plant and equipment     8,566  8,093
Less: accumulated depreciation     2,702  2,595
          
Property, plant and equipment, net    $5,864 $5,498

 

(a)       Represents land held for future use and non utility property.

  

 

Average Service Life Percentage by Asset Category2013  2012  2011 
         
Electric—transmission and distribution2.91% 2.92% 2.89%
Gas2.36% 2.33% 2.41%
Common—electric and gas8.45% 7.68% 8.40%

See Note 1—Significant Accounting Polices for further information regarding property, plant and equipment policies and accounting for capitalized software costs for Exelon, Generation, ComEd, PECO and BGE. See Note 13—Debt and Credit Agreements for further information regarding Exelon's, ComEd's, and PECO's property, plant and equipment subject to mortgage liens.

 
Exelon Generation Co L L C [Member]
  
Property, Plant and Equipment Disclosure [Line Items]  
Property, Plant and Equipment (Exelon, Generation, ComEd, PECO and BGE)
  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—generation1-52 $20,420 $19,004
Nuclear fuel (a)1-8  5,196  4,815
Construction work in progressN/A  1,129  1,352
Other property, plant and equipment (b)1-51  400  374
           
 Total property, plant and equipment     27,145  25,545
 Less: accumulated depreciation (c)     7,034  6,014
           
Property, plant and equipment, net    $20,111 $19,531

(a)       Includes nuclear fuel that is in the fabrication and installation phase of $947 million and $894 million at December 31, 2013 and 2012, respectively.

(b)       Includes buildings under capital lease with a net carrying value of $23 million and $20 million at December 31, 2013 and 2012, respectively. The original cost basis of the buildings was $59 million and total accumulated amortization was $36 million and $33 million as of December 31, 2013 and 2012, respectively. These balances also include capitalized acquisition, development and exploration costs related to oil and gas production activities.

(c)       Includes accumulated amortization of nuclear fuel in the reactor core of $2,371 million and $2,078 million as of December 31, 2013 and 2012, respectively.

 
Commonwealth Edison Co [Member]
  
Property, Plant and Equipment Disclosure [Line Items]  
Property, Plant and Equipment (Exelon, Generation, ComEd, PECO and BGE)
  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—transmission and distribution5-75 $17,334 $16,480
Construction work in progressN/A  456  294
Other property, plant and equipment (a)50  60  50
           
 Total property, plant and equipment     17,850  16,824
 Less: accumulated depreciation     3,184  2,998
           
Property, plant and equipment, net    $14,666 $13,826

 

(a)       Includes buildings under capital lease with a net carrying value of $8 million and $0 million at December 31, 2013 and 2012, respectively. The original cost basis of the buildings was $8 million and total accumulated amortization was $0 million and $0 million as of December 31, 2013 and 2012, respectively.

 
PECO Energy Co [Member]
  
Property, Plant and Equipment Disclosure [Line Items]  
Property, Plant and Equipment (Exelon, Generation, ComEd, PECO and BGE)
  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—transmission and distribution5-65 $6,669 $6,355
Gas—transportation and distribution5-70  1,932  1,859
Common—electric and gas5-50   600   568
Construction work in progressN/A  101  76
Other property, plant and equipment (a) 50    17   17
           
 Total property, plant and equipment     9,319  8,875
 Less: accumulated depreciation     2,935  2,797
           
Property, plant and equipment, net    $6,384 $6,078

  

(a)       Represents land held for future use and non utility property.

 
Baltimore Gas and Electric Company [Member]
  
Property, Plant and Equipment Disclosure [Line Items]  
Property, Plant and Equipment (Exelon, Generation, ComEd, PECO and BGE)
  Average Service Life      
  (years)  2013 2012
Asset Category         
Electric—transmission and distribution5-90 $6,100 $5,767
Gas—distribution5-90  1,660  1,548
Common—electric and gas5-40  578  554
Construction work in progressN/A  196  193
Other property, plant and equipment (a)20  32  31
          
Total property, plant and equipment     8,566  8,093
Less: accumulated depreciation     2,702  2,595
          
Property, plant and equipment, net    $5,864 $5,498

 

(a)       Represents land held for future use and non utility property.