Supplemental Financial Information (Exelon, Generation, ComEd, PECO and BGE)

Supplemental Statement of Operations Information

The following tables provide additional information about the Registrants’ Consolidated Statements of Operations and Comprehensive Income for the three and nine months ended September 30, 2014 and 2013:



Three Months Ended September 30, 2014	Exelon			Generation			ComEd		PECO		BGE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	55		$	55		$	—	$	—	$	—
Non-regulatory agreement units	39			39			—		—		—
Net unrealized losses on decommissioning trust funds
Regulatory agreement units	(107		)	(107		)	—		—		—
Non-regulatory agreement units	(41		)	(41		)	—		—		—
Net unrealized gains on pledged assets
Zion Station decommissioning	7			7			—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	29			29			—		—		—
Total decommissioning-related activities	(18		)	(18		)	—		—		—
Investment income	—			—			—		—		1		^(c)
Long-term lease income	4			—			—		—		—
Interest income related to uncertain income tax positions	25			27			—		—		—
AFUDC — Equity	5			—			—		2		3
Gain on sale of assets	338			338			—		—		—
Other	—			(5		)	4		—		—
Other, net	$	354		$	342		$	4	$	2	$	4



Nine Months Ended September 30, 2014	Exelon			Generation			ComEd		PECO			BGE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	167		$	167		$	—	$	—		$	—
Non-regulatory agreement units	102			102			—		—			—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	126			126			—		—			—
Non-regulatory agreement units	100			100			—		—			—
Net unrealized gains on pledged assets
Zion Station decommissioning	27			27			—		—			—
Regulatory offset to decommissioning trust fund-related activities^(b)	(270		)	(270		)	—		—			—
Total decommissioning-related activities	252			252			—		—			—
Investment income (expense)	1			1			—		(1		)	5		^(c)
Long-term lease income	20			—			—		—			—
Interest income related to uncertain income tax positions	41			53			—		—			—
AFUDC — Equity	17			—			3		5			9
Gain on sale of assets	356			355			1		—			—
Other	15			—			10		1			—
Other, net	$	702		$	661		$	14	$	5		$	14



Three Months Ended September 30, 2013	Exelon			Generation			ComEd		PECO		BGE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	138		$	138		$	—	$	—	$	—
Non-regulatory agreement units	35			35			—		—		—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	103			103			—		—		—
Non-regulatory agreement units	46			46			—		—		—
Net unrealized losses on pledged assets
Zion Station decommissioning	(9		)	(9		)	—		—		—
Regulatory offset to decommissioning trust fund-related activities^(b)	(189		)	(189		)	—		—		—
Total decommissioning-related activities	124			124			—		—		—
Investment income	1			—			—		—		2		^(c)
Long-term lease income	7			—			—		—		—
AFUDC — Equity	4			—			2		1		1
Gain on sale of assets	10			8			2		—		—
Other	9			2			3		—		1
Other, net	$	155		$	134		$	7	$	1	$	4



Nine Months Ended September 30, 2013	Exelon			Generation			ComEd		PECO			BGE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	221		$	221		$	—	$	—		$	—
Non-regulatory agreement units	65			65			—		—			—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	196			196			—		—			—
Non-regulatory agreement units	70			70			—		—			—
Net unrealized losses on pledged assets
Zion Station decommissioning	(5		)	(5		)	—		—			—
Regulatory offset to decommissioning trust fund-related activities^(b)	(338		)	(338		)	—		—			—
Total decommissioning-related activities	209			209			—		—			—
Investment income (expense)	6			(1		)	—		(1		)	7		^(c)
Long-term lease income	20			—			—		—			—
Interest income related to uncertain income tax positions	24			3			—		1			—
AFUDC — Equity	16			—			8		3			5
Gain on sale of assets	17			13			2		—			—
Other	19			5			8		1			1
Other, net	$	311		$	229		$	18	$	4		$	13

________


(a)	Includes investment income and realized gains and losses on sales of investments of the trust funds.


(b)	Includes the elimination of NDT fund activity for the Regulatory Agreement Units, including the elimination of net income taxes related to all NDT fund activity for those units. See Note 15 — Asset Retirement Obligations of the Exelon 2013 Form 10-K for additional information regarding the accounting for nuclear decommissioning.


(c)	Relates to the cash return on BGE’s rate stabilization deferral. See Note 5 — Regulatory Matters for additional information regarding the rate stabilization deferral.

Supplemental Cash Flow Information

The following tables provide additional information regarding the Registrants’ Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and 2013:



Nine Months Ended September 30, 2014	Exelon		Generation		ComEd		PECO		BGE
Depreciation, amortization, accretion and depletion
Property, plant and equipment	$	1,549	$	686	$	438	$	169	$	215
Regulatory assets	150		—		83		7		60
Amortization of intangible assets, net	33		33		—		—		—
Amortization of energy contract assets and liabilities^(a)	83		93		—		—		—
Nuclear fuel^(b)	790		790		—		—		—
ARO accretion^(c)	251		251		—		—		—
Total depreciation, amortization, accretion and depletion	$	2,856	$	1,853	$	521	$	176	$	275



Nine Months Ended September 30, 2013	Exelon		Generation		ComEd		PECO		BGE
Depreciation, amortization, accretion and depletion
Property, plant and equipment	$	1,420	$	610	$	413	$	164	$	194
Regulatory assets	153		—		88		7		58
Amortization of intangible assets, net	33		33		—		—		—
Amortization of energy contract assets and liabilities^(a)	342		398		—		—		—
Nuclear fuel^(b)	689		689		—		—		—
ARO accretion^(c)	207		207		—		—		—
Total depreciation, amortization, accretion and depletion	$	2,844	$	1,937	$	501	$	171	$	252

_________


(a)	Included in Operating revenues or Purchased power and fuel expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.


(b)	Included in Purchased power and fuel expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.


(c)	Included in Operating and maintenance expense on the Registrants’ Consolidated Statements of Operations and Comprehensive Income.



Nine Months Ended September 30, 2014	Exelon			Generation			ComEd			PECO				BGE
Other non-cash operating activities:
Pension and non-pension postretirement benefit costs	$	437		$	193		$	129		$	28			$	50
Loss from equity method investments	20			20			—			—				—
Provision for uncollectible accounts	96			10			9			39				38
Stock-based compensation costs	111			—			—			—				—
Other decommissioning-related activity^(a)	(102		)	(102		)	—			—				—
Energy-related options^(b)	92			92			—			—				—
Amortization of regulatory asset related to debt costs	8			—			6			2				—
Amortization of rate stabilization deferral	50			—			—			—				50
Amortization of debt fair value adjustment	(45		)	(17		)	—			—				—
Discrete impacts of EIMA^(c)	(32		)	—			(32		)	—				—
Amortization of debt costs	36			9			4			2				2
Merger commitments^(d)	44			44			—			—				—
Other	(17		)	2			—			(1		)		(11		)
Total other non-cash operating activities	$	698		$	251		$	116		$	70			$	129
Changes in other assets and liabilities:
Under/over-recovered energy and transmission costs	$	53		$	—		$	63		$	(14	)		$	6
Other regulatory assets and liabilities	(63		)	—			(14		)	(14		)		(89		)
Cash deposits^(f)	(280		)	(280		)	—			—				—
Other current assets	(78		)	24			(9		)	(48		)	^(h)	25
Other noncurrent assets and liabilities	(168		)	(111		)	22			1				(9		)
Total changes in other assets and liabilities	$	(536	)	$	(367	)	$	62		$	(75	)		$	(67	)
Non-cash investing and financing activities:
Fair value of net assets recorded upon CENG consolidation^(j)	$	(3,400	)	$	(3,400	)	$	—		$	—			$	—
Issuance of equity units^(k)	131			—			—			—				—
Uranium procurement^(l)	70			70			—			—				—
Indemnification of like-kind exchange position^(m)	—			—			4			—				—
Total non-cash investing and financing activities:	$	(3,199	)	$	(3,330	)	$	4		$	—			$	—



Nine Months Ended September 30, 2013	Exelon			Generation			ComEd				PECO				BGE
Other non-cash operating activities:
Pension and non-pension postretirement benefit costs	$	621		$	259		$	231			$	32			$	41
Gain from equity method investments	(7		)	(7		)	—				—				—
Provision for uncollectible accounts	83			16			(6		)		48				25
Stock-based compensation costs	99			—			—				—				—
Other decommissioning-related activity^(a)	(110		)	(110		)	—				—				—
Energy-related options^(b)	87			87			—				—				—
Amortization of regulatory asset related to debt costs	9			—			7				2				—
Amortization of rate stabilization deferral	49			—			—				—				49
Amortization of debt fair value adjustment	(28		)	(28		)	—				—				—
Discrete impacts from EIMA^(c)	(206		)	—			(206		)		—				—
Amortization of debt costs	13			7			3				2				1
Merger integration costs^(e)	(6		)	—			—				—				(6		)
Increase in inventory reserve	7			7			—				—				—
Other	(27		)	—			(3		)		—				(5		)
Total other non-cash operating activities	$	584		$	231		$	26			$	84			$	105
Changes in other assets and liabilities:
Under/over-recovered energy and transmission costs	$	(47	)	$	—		$	(63	)		$	(10	)		$	26
Other regulatory assets and liabilities	(50		)	—			(35		)		—				(85		)
Settlement of interest rate swaps ^(g)	26			—			—				—				—
Other current assets	(169		)	(123		)	47				(31		)	^(h)	(35		)
Other noncurrent assets and liabilities	205			(40		)	261			⁽ⁱ⁾	(6		)		(25		)
Total changes in other assets and liabilities	$	(35	)	$	(163	)	$	210			$	(47	)		$	(119	)
Non-cash investing and financing activities:
Consolidated VIE dividend to noncontrolling interest	$	63		$	63		$	—			$	—			$	—
Indemnification of like-kind exchange position^(m)	—			—			175				—				—
Total non-cash investing and financing activities	$	63		$	63		$	175			$	—			$	—

____________

(a)

Includes the elimination of NDT fund activity for the Regulatory Agreement Units, including the elimination of operating revenues, ARO accretion, ARC amortization, investment income and income taxes related to all NDT fund activity for these units. See Note 15 - Asset Retirement Obligations of the Exelon 2013 Form 10-K for additional information regarding the accounting for nuclear decommissioning.


(b)	Includes option premiums reclassified to realized at the settlement of the underlying contracts and recorded to results of operations.


(c)	Reflects the change in distribution rates pursuant to EIMA, which allows for the recovery of costs by a utility through a pre-established performance-based formula rate tariff. See Note 5 — Regulatory Matters for more information.


(d)	Reflects the establishment of a reserve related to a MDPSC merger commitment for generation development. See Note 18 - Commitments and Contingencies for additional information.


(e)	Relates to integration costs to achieve distribution synergies related to the Constellation merger transaction that were reclassified to a regulatory asset. See Note 5 — Regulatory Matters for more information.


(f)	Relates primarily to cash deposits made to ISO's/RTO's.


(g)	Relates to settlement of forward starting interest rate swaps that Exelon entered into in anticipation of Continental Wind, LLC non-recourse project financing that was completed on September 30, 2013. See Note 9 — Derivative Financial Instruments for more information on interest rate swaps.


(h)	Relates primarily to prepaid utility taxes.


(i)	Relates primarily to interest payable related to like-kind exchange tax position. See Note 11 — Income Taxes for discussion of the like-kind exchange tax position.


(j)	See Note 6 — Investment in Constellation Energy Nuclear Group, LLC for additional information.


(k)	Relates to the present value of the contract payments for the equity units issued by Exelon. See Note 16 — Common Stock for additional information.


(l)	Relates to the nuclear fuel procurement contracts for the purchase of fixed quantities of uranium, which was delivered to Generation on June 30, 2014 and September 24, 2014. Generation is required to make payments starting June 30, 2016, with the final payment being due no later than June 30, 2018.


(m)	See Note 11 — Income Taxes for discussion of the like-kind exchange tax position.

DOE Smart Grid Investment Grant (Exelon, BGE and PECO). For the nine months ended September 30, 2014, PECO has included in the capital expenditures line item under investing activities of the cash flow statement capital expenditures of $2 million and reimbursements of $5 million related to PECO’s DOE SGIG programs. For the nine months ended September 30, 2013, Exelon, PECO and BGE have included in the capital expenditures line item under investing activities of the cash flow statement capital expenditures of $68 million, $22 million and $46 million, respectively, and reimbursements of $64 million, $30 million and $34 million, respectively, related to PECO’s and BGE’s DOE SGIG programs. See Note 5 — Regulatory Matters for additional information regarding the DOE SGIG.

Supplemental Balance Sheet Information

The following tables provide additional information about assets and liabilities of the Registrants as of September 30, 2014 and December 31, 2013.



September 30, 2014	Exelon			Generation			ComEd		PECO		BGE
Property, plant and equipment:
Accumulated depreciation and amortization	$	14,932	^(a)	$	7,868	^(a)	$	3,370	$	2,972	$	2,825
Accounts receivable:
Allowance for uncollectible accounts	$	291		$	55		$	80	$	115	$	41



December 31, 2013	Exelon			Generation			ComEd		PECO		BGE
Property, plant and equipment:
Accumulated depreciation and amortization	$	13,713	^(b)	$	7,034	^(b)	$	3,184	$	2,935	$	2,702
Accounts receivable:
Allowance for uncollectible accounts	$	272		$	57		$	62	$	107	$	46

_______


(a)	Includes accumulated amortization of nuclear fuel in the reactor core of $2,729 million.


(b)	Includes accumulated amortization of nuclear fuel in the reactor core of $2,371 million.

PECO Installment Plan Receivables (Exelon and PECO)

PECO enters into payment agreements with certain delinquent customers, primarily residential, seeking to restore their service, as required by the PAPUC. Customers with past due balances that meet certain income criteria are provided the option to enter into an installment payment plan, some of which have terms greater than one year, to repay past due balances in addition to paying for their ongoing service on a current basis. The receivable balance for these payment agreement receivables is recorded in accounts receivable for the current portion and other deferred debits and other assets for the noncurrent portion. The net receivable balance for installment plans with terms greater than one year was $19 million as of September 30, 2014 and December 31, 2013. The allowance for uncollectible accounts reserve methodology and assessment of the credit quality of the installment plan receivables are consistent with the customer accounts receivable methodology discussed in Note 1 — Significant Accounting Policies of the Exelon 2013 Form 10-K. The allowance for uncollectible accounts balance associated with these receivables at September 30, 2014 of $19 million consists of $1 million, $4 million and $14 million for low risk, medium risk and high risk segments, respectively. The allowance for uncollectible accounts balance at December 31, 2013 of $18 million consists of $1 million, $4 million and $13 million for low risk, medium risk and high risk segments, respectively. The balance of the payment agreement is billed to the customer in equal monthly installments over the term of the agreement. Installment receivables outstanding as of September 30, 2014 and December 31, 2013 include balances not yet presented on the customer bill, accounts currently billed and an immaterial amount of past due receivables. When a customer defaults on its payment agreement, the terms of which are defined by plan type, the entire balance of the agreement becomes due and the balance is reclassified to current customer accounts receivable and reserved for in accordance with the methodology discussed in Note 1 — Significant Accounting Policies of the Exelon 2013 Form 10-K.