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

12 Months Ended

Dec. 31, 2013

Segment Information [Line Items]

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

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

Operating segments for each of the Registrants are determined based on information used by the chief operating decision maker(s) (CODM) in deciding how to evaluate performance and allocate resources at each of the Registrants.        

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 CODMs for ComEd, PECO, and BGE evaluate performance and allocate resources for their respective companies based on net income and return on equity for ComEd, PECO, and BGE each as single integrated businesses.

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 United States footprint of MISO excluding MISO's Southern Region, 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 FRCC, MISO's Southern Region,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.

The CODMs for Exelon and Generation evaluate the performance of Generation's power marketing activities and allocate resources 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, and investments in energy-related proprietary technology 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 yearsended December 31, 2013, 2012 and 2011 is as follows:

												Intersegment
		Generation (a)		ComEd		PECO		BGE(b)		Other(c)		Eliminations		Exelon
Operating revenues(d):
	2013	$	15,630	$	4,464	$	3,100	$	3,065	$	1,241	$	(2,612)	$	24,888
	2012		14,437		5,443		3,186		2,091		1,396		(3,064)		23,489
	2011		10,447		6,056		3,720		0		830		(1,990)		19,063
Intersegment revenues(e):
	2013	$	1,367	$	3	$	1	$	13	$	1,237	$	(2,607)	$	14
	2012		1,660		2		3		9		1,381		(3,049)		6
	2011		1,161		2		5		0		831		(1,990)		9
Depreciation and amortization
	2013	$	856	$	669	$	228	$	348	$	52	$	0	$	2,153
	2012		768		610		217		238		48		0		1,881
	2011		570		554		202		0		21		0		1,347
Operating expenses(d):
	2013	$	13,976	$	3,510	$	2,434	$	2,616	$	1,324	$	(2,618)	$	21,242
	2012		13,226		4,557		2,563		2,053		1,662		(3,043)		21,018
	2011		7,571		5,074		3,065		0		863		(1,990)		14,583
Equity in earnings (losses) of unconsolidated affiliates
	2013	$	10	$	0	$	0	$	0	$	0	$	0	$	10
	2012		(91)		0		0		0		0		0		(91)
	2011		(1)		0		0		0		0		0		(1)
Interest expense, net:
	2013	$	357	$	579	$	115	$	122	$	183	$	0	$	1,356
	2012		301		307		123		111		86		0		928
	2011		170		345		134		0		77		0		726
Income (loss) before income taxes:
	2013	$	1,675	$	401	$	557	$	344	$	(191)	$	(13)	$	2,773
	2012		1,058		618		508		(54)		(325)		(7)		1,798
	2011		2,827		666		535		0		(59)		(13)		3,956
Income taxes:
	2013	$	615	$	152	$	162	$	134	$	(20)	$	1	$	1,044
	2012		500		239		127		(23)		(215)		(1)		627
	2011		1,056		250		146		0		9		(4)		1,457
Net income (loss):
	2013	$	1,060	$	249	$	395	$	210	$	(171)	$	(14)	$	1,729
	2012		558		379		381		(31)		(110)		(6)		1,171
	2011		1,771		416		389		0		(68)		(9)		2,499
Capital expenditures:
	2013	$	2,752	$	1,433	$	537	$	587	$	86	$	0	$	5,395
	2012		3,554		1,246		422		500		67		0		5,789
	2011		2,491		1,028		481		0		42		0		4,042
Total assets:
	2013	$	41,232	$	24,118	$	9,617	$	7,861	$	8,317	$	(11,221)	$	79,924
	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, ERCOT and Other Regions. Intersegment revenues for Generation for the year ended December 31, 2013include revenue from sales to PECO of $405 and sales to BGE of $455 millionin the Mid-Atlantic region, and sales to ComEd of $506 in the Midwest region, net of $7 millionrelated to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation. For the year ended December 31, 2012include revenue from sales to PECO of $543 and sales to BGE of $322 millionin the Mid-Atlantic region, and sales to ComEd of $795 in the Midwest region, net of $7 millionrelated to the unrealized mark-to-market losses related to the ComEd swap, which eliminate upon consolidation. For the year ended 2011 intersegment revenues for Generation include revenue from sales to PECO of $508 million in the Mid-Atlantic region, and sales to ComEd of $653 million in the Midwest region.

(b)       Amounts represent activity recorded at BGE from March 12, 2012, the closing date of the merger, through December 31, 2013.

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

(d)       For the years ended December 31, 2013, 2012 and 2011, utility taxes of $79 million, $82 million and $27 million, respectively, are included in revenues and expenses for Generation. For the years ended December 31, 2013, 2012 and 2011, utility taxes of $241 million, $239 million and $243 million, respectively, are included in revenues and expenses for ComEd. For the years ended December 31, 2013, 2012 and 2011, utility taxes of $129 million, $141 million and $173 million, respectively, are included in revenues and expenses for PECO. For the year ended December 31, 2013 and for the period of March 12, 2012 through December 31, 2012, utility taxes of $82 millionand $59 million are included in revenues and expenses for BGE, respectively.

(e)       Intersegment revenues exclude sales to unconsolidated affiliates. The intersegment profit associated with Generation's sale of certain products and services by and between Exelon's segments is not eliminated in consolidation due to the recognition of intersegment profit in accordance with regulatory accounting guidance. For Exelon, these amounts are included in operating revenues in the Consolidated Statements of Operations.

Generation total revenues:
	2013						2012						2011
	Revenues from external customers (a)		Intersegment revenues		Total Revenues		Revenues from external customers (a)		Intersegment revenues		Total Revenues		Revenues from external customers (a)		Intersegment revenues		Total Revenues
Mid-Atlantic	$	5,182	$	22	$	5,204	$	5,082	$	(44)	$	5,038	$	4,052	$	0	$	4,052
Midwest		4,280		(10)		4,270		4,824		24		4,848		5,445		0		5,445
New England		1,245		(8)		1,237		1,048		45		1,093		11		0		11
New York		735		(21)		714		582		(25)		557		0		0		0
ERCOT		1,222		(6)		1,216		1,365		2		1,367		575		0		575
Other Regions (b)		946		22		968		755		78		833		201		0		201
Total Revenues for Reportable Segments	$	13,610	$	(1)	$	13,609	$	13,656	$	80	$	13,736	$	10,284	$	0	$	10,284
Other (c)		2,020		1		2,021		781		(80)		701		163		0		163
Total Generation Consolidated Operating Revenues	$	15,630	$	0	$	15,630	$	14,437	$	0	$	14,437	$	10,447	$	0	$	10,447

(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 $767 million and $1,505 million for the years ended December 31, 2013 and 2012, respectively, and elimination of intersegment revenues.

Generation total revenues net of purchased power and fuel expense:
	2013						2012						2011
	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	$	3,273	$	(3)	$	3,270	$	3,477	$	(44)	$	3,433	$	3,350	$	0	$	3,350
Midwest		2,585		1		2,586		2,974		24		2,998		3,547		0		3,547
New England		217		(32)		185		151		45		196		9		0		9
New York		14		(18)		(4)		101		(25)		76		-		0		-
ERCOT		604		(168)		436		403		2		405		84		0		84
Other Regions (b)		334		(133)		201		53		78		131		(14)		0		(14)
Total Revenues net of purchased power and fuel expense for Reportable Segments	$	7,027	$	(353)	$	6,674	$	7,159	$	80	$	7,239	$	6,976	$	0	$	6,976
Other (c)		406		353		759		217		(80)		137		(118)		0		(118)
Total Generation Revenues net of purchased power and fuel expense	$	7,433	$	0	$	7,433	$	7,376	$	0	$	7,376	$	6,858	$	0	$	6,858

(a)Includes purchases and 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 valueof $488 million and $1,098 million, for the years ended December 31, 2013 and 2012, respectively, and the elimination of intersegment revenues.