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

3 Months Ended

Mar. 31, 2014

Segment Information [Line Items]

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

17. 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.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 and return on equity.

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 ofNew 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'sother miscellaneous revenues, unrealized 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 months ended March 31, 2014 and 2013 is as follows:

												Intersegment Eliminations
		Generation (a)		ComEd		PECO		BGE		Other (b)					Exelon
Total revenues (c):
	2014	$	4,390	$	1,134	$	993	$	1,054	$	290	$	(624)	$	7,237
	2013		3,533		1,160		895		880		318		(704)		6,082
Intersegment revenues (d):
	2014	$	316	$	1	$	1	$	16	$	290	$	(623)	$	1
	2013		381		1		0		4		318		(704)		0
Net income (loss):
	2014	$	(185)	$	98	$	89	$	88	$	4	$	(1)	$	93
	2013		(17)		(81)		122		80		(103)		0		1
Total assets:
	March 31, 2014	$	41,080	$	24,294	$	9,766	$	7,958	$	8,146	$	(11,776)	$	79,468
	December 31, 2013		41,232		24,118		9,617		7,861		8,317		(11,221)		79,924

__________

(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 March 31, 2014 include revenue from sales to PECO of $88 million and sales to BGE of $120 million in the Mid-Atlantic region, and sales to ComEd of $108 million in the Midwest. For the three months ended March 31, 2013 intersegment revenues for Generation include revenue from sales to PECO of $141 million and sales to BGE of $113 million in the Mid-Atlantic region, and sales to ComEd of $145 million in the Midwest region, net of ($17) 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 March 31, 2014 and 2013, utility taxes of $24 million and $21 million, respectively, are included in revenues and expenses for Generation. For the three months ended March 31, 2014 and 2013, utility taxes of $63million and $60million, respectively, are included in revenues and expenses for ComEd. For the three months ended March 31, 2014 and 2013, utility taxes of $35million and $34million, respectively, are included in revenues and expenses for PECO. For thethree months ended March 31, 2014 and2013, utility taxes of $20million and $22 million, respectively, are included in revenues and expenses for BGE.

(d)       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 profitin accordance with regulatory accounting guidance. For Exelon, these amounts are included in operating revenues in the Consolidated Statements of Operations and Comprehensive Income.

Generation total revenues (three months ended):
	2014						2013
	Revenues from external customers (a)		Intersegment revenues		Total Revenues		Revenues from external customers (a)		Intersegment revenues		Total Revenues
Mid-Atlantic	$	1,441	$	(23)	$	1,418	$	1,331	$	(8)	$	1,323
Midwest		1,258		12		1,270		1,181		7		1,188
New England		545		4		549		391		12		403
New York		190		(3)		187		175		(6)		169
ERCOT		243		0		243		293		-		293
Other Regions (b)		334		7		341		183		42		225
Total Revenues for Reportable Segments		4,011		(3)		4,008		3,554		47		3,601
Other (c)		379		3		382		(21)		(47)		(68)
Total Generation Consolidated Operating Revenues	$	4,390	$	0	$	4,390	$	3,533	$	-	$	3,533

(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 $93 millionand $174 million, for the three months ended March 31, 2014 and 2013, respectively, and elimination of intersegment revenues.

Generation total revenues net of purchased power and fuel expense (three months ended):
	2014						2013
	RNF from external customers (a)		Intersegment RNF		Total RNF		RNF from external customers (a)		Intersegment RNF		Total RNF
Mid-Atlantic	$	784	$	(89)	$	695	$	852	$	(8)	$	844
Midwest		530		26		556		710		7		717
New England		154		(18)		136		18		12		30
New York		(29)		8		(21)		(16)		(6)		(22)
ERCOT		155		(72)		83		112		(11)		101
Other Regions (b)		150		(45)		105		10		35		45
Total Revenues net of purchased power and fuel expense for Reportable Segments		1,744		(190)		1,554		1,686		29		1,715
Other (c)		(711)		190		(521)		(322)		(29)		(351)
Total Generation Revenues net of purchased power and fuel expense	$	1,033	$	0	$	1,033	$	1,364	$	-	$	1,364

(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 value of $42 million and $174million for the three months ended March 31, 2014 and 2013, respectively, and the elimination of intersegment revenues.