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Segment Information (Exelon, Generation, ComEd, PECO and BGE)
 6 Months Ended
Jun. 30, 2014
Segment Information [Line Items]  
Segment Information (Exelon, Generation, ComEd, PECO and BGE)

20. 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's CODM evaluates the performance of and allocates resources to 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.
  • Midwest represents 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, 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, 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 sales to its affiliates, 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 other 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 with Constellation and the consolidation of CENG 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 June 30, 2014 and 2013 is as follows:

Three Months Ended June 30, 2014 and 2013

__________

(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 three months ended June 30, 2014 include revenue from sales to PECO of $49 million and sales to BGE of $87 million in the Mid-Atlantic region, and sales to ComEd of $65 million in the Midwest region. For the three months ended June 30, 2013 intersegment revenues for Generation include revenue from sales to PECO of $97 million and sales to BGE of $99 million in the Mid-Atlantic region, sales to ComEd of $121 million in the Midwest region, and $10 million related to the unrealized mark-to-market gains 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, 2014 and 2013, utility taxes of $21 million and $18 million, respectively, are included in revenues and expenses for Generation. For the three months ended June 30, 2014 and 2013, utility taxes of $56 million and $56 million, respectively, are included in revenues and expenses for ComEd. For the three months ended June 30, 2014 and 2013, utility taxes of $30 million and $31 million, respectively, are included in revenues and expenses for PECO. For the three months ended June 30, 2014 and 2013, utility taxes of $19 million and $19 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 profit in 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$1,272 $5 $1,277 $1,220 $ 9 $1,229
Midwest 981  0  981  1,076   (5)  1,071
New England 211  1  212  209   (20)  189
New York 194  0  194  175   (1)  174
ERCOT 198  (1)  197  319   (4)  315
Other Regions (b) 314  (6)  308  246   (6)  240
Total Revenues for Reportable Segments 3,170  (1)  3,169  3,245  (27)  3,218
Other (c) 619  1  620  825   27  852
Total Generation Consolidated Operating Revenues$3,789 $0 $3,789 $4,070 $ - $4,070

 

(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 date of merger with Constellation and the consolidation of CENG in purchase accounting of $88 million and $234 million, for the three months ended June 30, 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$906 $14 $920 $770 $ (2) $768
Midwest 604  1  605  687   (3)  684
New England 88  (24)  64  85   (35)  50
New York 142  6  148  0   14  14
ERCOT 117  (58)  59  143   (31)  112
Other Regions (b) 157  (82)  75  111   (52)  59
Total Revenues net of purchased power and fuel expense for Reportable Segments 2,014  (143)  1,871  1,796  (109)  1,687
Other (c) (60)  143  83  328   109  437
Total Generation Revenues net of purchased power and fuel expense$1,954 $0 $1,954 $2,124 $ - $2,124

 

(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 at the date of merger with Constellation and the consolidation of CENG in purchase accounting of $50 million and $167 million for the three months ended June 30, 2014 and 2013, respectively, and the elimination of intersegment revenues.

 

Six Months Ended June 30, 2014 and 2013

                 Intersegment Eliminations   
  Generation (a)(b) ComEd PECO BGE Other (c)   Exelon
Total revenues (d):
 2014$8,179 $2,262 $1,649 $1,707 $619 $(1,155) $13,261
 2013 7,603  2,239  1,567  1,533  615  (1,334)  12,223
Intersegment revenues (e):
 2014$517 $1 $1 $18 $618 $(1,155) $0
 2013 710  1  0  8  615  (1,334)  0
Net income (loss):
 2014$188 $209 $173 $106 $(25) $0 $651
 2013 310  14  200  106  (132)  0  498

__________

(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, 2014 include revenue from sales to PECO of $ 137 million and sales to BGE of $ 207 million in the Mid-Atlantic region, and sales to ComEd of $ 173 million in the Midwest region. For the six months ended June 30, 2013 intersegment revenues for Generation include revenue from sales to PECO of $238 million in the Mid-Atlantic region 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.

(b)       Amounts include activity recorded at CENG from April 1, 2014, the date of integration, through June 30, 2014.

(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, 2014 and 2013, utility taxes of $45 million and $39 million, respectively, are included in revenues and expenses for Generation. For the six months ended June 30, 2014 and 2013, utility taxes of $119 million and $117 million, respectively, are included in revenues and expenses for ComEd. For the six months ended June 30, 2014 and 2013, utility taxes of $65 million and $64 million, respectively, are included in revenues and expenses for PECO. For the six months ended June 30, 2014 and 2013, utility taxes of $43 million and $41 million, respectively, are included in revenues and expenses for BGE.

(e)       Intersegment revenues exclude sales to unconsolidated affiliates. The intersegment profit associated with the 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 and Comprehensive Income.

 

Generation total revenues (six months ended):
 2014 2013
 Revenues from external customers (a) Intersegment revenues  Total Revenues Revenues from external customers (a) Intersegment revenues Total Revenues
Mid-Atlantic (b)$2,713 $(18) $2,695 $2,551 $1 $2,552
Midwest 2,239  12  2,251  2,257  2  2,259
New England 756  5  761  600  (8)  592
New York (b) 384  (3)  381  350  (7)  343
ERCOT 441  (1)  440  612  (4)  608
Other Regions (c) 648  1  649  429  36  465
Total Revenues for Reportable Segments 7,181  (4)  7,177  6,799  20  6,819
Other (d) 998  4  1,002  804  (20)  784
Total Generation Consolidated Operating Revenues$8,179 $0 $8,179 $7,603 $0 $7,603

 

(a)       Includes all wholesale and retail electric sales from third parties and affiliated sales to ComEd, PECO and BGE.

(b)       Amounts include activity recorded at CENG from April 1, 2014, the date of integration, through June 30, 2014.

(c)       Other regions include the South, West and Canada, which are not considered individually significant.

(d)       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 date of merger with Constellation and the consolidation of CENG in purchase accounting of $180 million and $478 million, for the six months ended June 30, 2014 and 2013, respectively, and elimination of intersegment revenues.

 

Generation total revenues net of purchased power and fuel expense (six months ended):
 2014 2013
 RNF from external customers (a) Intersegment RNF  Total RNF RNF from external customers (a) Intersegment RNF Total RNF
Mid-Atlantic (b)$1,690 $(75) $1,615 $1,622 $(10) $1,612
Midwest 1,134  27  1,161  1,397  4  1,401
New England 242  (42)  200  103  (23)  80
New York (b) 113  14  127  (16)  8  (8)
ERCOT 272  (130)  142  255  (42)  213
Other Regions (c) 307  (127)  180  122  (17)  105
Total Revenues net of purchased power and fuel expense for Reportable Segments 3,758  (333)  3,425  3,483  (80)  3,403
Other (d) (770)  333  (437)  6  80  86
Total Generation Revenues net of purchased power and fuel expense$2,988 $0 $2,988 $3,489 $0 $3,489

 

(a)       Includes purchases and sales from third parties and affiliated sales to ComEd, PECO and BGE.

(b)       Amounts include activity recorded at CENG from April 1, 2014, the date of integration, through June 30, 2014.

(c)       Other regions include the South, West and Canada, which are not considered individually significant.

(d)       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 date of merger with Constellation and the consolidation of CENG in purchase accounting of $92 million and $341 million, for the six months ended June 30, 2014 and 2013, respectively.