Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2014

Commitments And Contingencies Tables Disclosure [Line Items]

Energy Commitments

As of September 30, 2014, Generation’s commitments relating to its purchases from unaffiliated utilities and others of energy, capacity, transmission rights and RECs, are as indicated in the following table:

	Net Capacity Purchases(a)		REC Purchases(b)		Transmission Rights Purchases(c)		Total
2014	$	91	$	7	$	6	$	104
2015	396		162		20		578
2016	269		166		15		450
2017	208		80		15		303
2018	98		15		16		129
Thereafter	389		4		51		444
Total	$	1,451	$	434	$	123	$	2,008

____________________

(a) Net capacity purchases include PPAs and other capacity contracts including those that are accounted for as operating leases. Amounts presented in the commitments represent Generation’s expected payments under these arrangements at September 30, 2014, net of fixed capacity payments expected to be received ("capacity offsets") by Generation under contracts to resell such acquired capacity to third parties under long-term capacity sale contracts. As of September 30, 2014, capacity offsets were $23 million, $132, million $133 million, $136, million, $137 million, and $729 million for years 2014, 2015, 2016, 2017, 2018, and thereafter, respectively. Expected payments include certain fixed capacity charges which may be reduced based on plant availability.

(b) The table excludes renewable energy purchases that are contingent in nature.

(c) Transmission rights purchases include estimated commitments for additional transmission rights that will be required to fulfill firm sales contracts.

Utility Energy Purchase Commitments

ComEd’s, PECO’s and BGE’s electric supply procurement, curtailment services, REC and AEC purchase commitments, as applicable, as of September 30, 2014 are as follows:

			Expiration within
	Total		2014		2015		2016		2017		2018		2019 and beyond
ComEd
Electric supply procurement(a)	$	731	$	111	$	329	$	151	$	140	$	—	$	—
Renewable energy and RECs(b)	1,538		22		73		76		77		78		1,212
PECO
Electric supply procurement(c)	498		193		305		—		—		—		—
AECs(d)	13		1		2		2		2		2		4
BGE
Electric supply procurement(e)	1,055		198		621		236		—		—		—
Curtailment services(f)	125		10		40		34		29		12		—

___________________

(a) ComEd entered into various contracts for the procurement of electricity that started to expire in 2012, and will continue to expire through 2017. ComEd is permitted to recover its electric supply procurement costs from retail customers with no mark-up. As of September 30, 2014, ComEd has completed the ICC-approved procurement process for a portion of its energy requirements through the periods ending May 31, 2015, 2016 and 2017.

(b) Primarily related to ComEd 20-year contracts for renewable energy and RECs that began in June 2012. ComEd is permitted to recover its renewable energy and REC costs from retail customers with no mark-up. The commitments represent the maximum settlements with suppliers for renewable energy and RECs under the existing contract terms.

(c) PECO entered into various contracts for the procurement of electric supply to serve its default service customers that expire between 2014 and 2015. PECO is permitted to recover its electric supply procurement costs from default service customers with no mark-up in accordance with its PAPUC-approved DSP Programs. See Note 5 — Regulatory Matters for additional information.

(d) PECO is subject to requirements related to the use of alternative energy resources established by the AEPS Act. See Note 5 — Regulatory Matters for additional information.

(e) BGE entered into various contracts for the procurement of electricity that expire between 2014 through 2016. The cost of power under these contracts is recoverable under MDPSC approved fuel clauses. See Note 5 — Regulatory Matters for additional information.

(f) BGE has entered into various contracts with curtailment services providers related to transactions in PJM’s capacity market. See Note 5 —Regulatory Matters for additional information.

Fuel Purchase Commitments

As of September 30, 2014, these net commitments were as follows:

			Expiration within
	Total		2014		2015		2016		2017		2018		2019 and beyond
Generation	$	9,636	$	351	$	1,512	$	1,226	$	1,271	$	1,003	$	4,273
PECO	387		57		120		94		35		15		66
BGE	624		40		115		81		64		53		271

Other Purchase Obligation

The Registrants’ other purchase obligations as of September 30, 2014, which primarily represent commitments for services, materials and information technology, are as follows:

			Expiration within
	Total		2014		2015		2016		2017		2018		2019 and beyond
Exelon	$	917	$	103	$	324	$	180	$	151	$	36	$	123
Generation(a)(b)	493		80		182		57		43		30		101
ComEd(c)	92		13		38		16		5		5		15
PECO(c)	29		7		11		2		1		1		7
BGE(c)	302		2		93		105		102		—		—

________________

(a) Purchase obligations do not include commitments related to construction contracts. See Construction Commitments section below for additional information.

(b) Purchase obligations include commitments related to assets-held-for-sale. See Note 4 - Mergers, Acquisitions and Dispositions for additional information.

(c) Purchase obligations include commitments related to smart meter installation. See Note 5 — Regulatory Matters for additional information.

Commercial Commitments

The Registrants’ commercial commitments as of September 30, 2014, representing commitments potentially triggered by future events were as follows:

	Exelon			Generation			ComEd			PECO			BGE
Letters of credit (non-debt)(a)	$	1,021		$	973		$	20		$	22		$	1
Guarantees	4,902		(b)	1,604		(c)	206		(d)	181		(e)	259		(f)
Nuclear insurance premiums(g)	3,559			3,559			—			—			—
Underwriters discount(h)	60			—			—			—			—
Total commercial commitments	$	9,542		$	6,136		$	226		$	203		$	260

___________________

(a) Non-debt letters of credit maintained to provide credit support for certain transactions as requested by third parties.

(b) Primarily reflects parental guarantees issued on behalf of Generation to allow the flexibility needed to conduct business with counterparties without having to post other forms of collateral. Also reflects guarantees issued to ensure performance under specific contracts, preferred securities of financing trusts, property leases, indemnifications, NRC minimum funding assurance requirements and miscellaneous guarantees. The estimated net exposure for obligations under commercial transactions covered by these guarantees was $467 million at September 30, 2014, which represents the total amount Exelon could be required to fund based on September 30, 2014 market prices.

(c) Primarily reflects guarantees issued to ensure performance under energy marketing and other specific contracts. The estimated net exposure for obligations under commercial transactions covered by these guarantees was $205 million at September 30, 2014, which represents the total amount Generation could be required to fund based on September 30, 2014 market prices.

(d) Primarily reflects full and unconditional guarantees of $200 million Trust Preferred Securities of ComEd Financing III, which is a 100% owned finance subsidiary of ComEd.

(e) Primarily reflects full and unconditional guarantees of $178 million Trust Preferred Securities of PECO Trust III and IV, which are 100% owned finance subsidiaries of PECO.

(f) Primarily reflects full and unconditional guarantees of $250 million Trust Preferred Securities of BGE Capital Trust II, which is a 100% owned finance subsidiary of BGE.

(g) Represents the maximum amount that Generation would be required to pay for retrospective premiums in the event of nuclear disaster at any domestic site, including CENG sites, under the Secondary Financial Protection pool as required under the Price-Anderson Act as well as the current aggregate annual retrospective premium obligation that could be imposed by NEIL. See the Nuclear Insurance section within this note for additional details on Generation’s nuclear insurance premiums.

(h) Represents the underwriters discount for Exelon’s forward equity transaction. See Note 16 — Common Stock of the Combined Notes to Consolidated Financial Statements for further details of the equity securities offering.

Accrued environmental liabilities

As of September 30, 2014 and December 31, 2013, the Registrants had accrued the following undiscounted amounts for environmental liabilities in other current liabilities and other deferred credits and other liabilities within their respective Consolidated Balance Sheets:

September 30, 2014	Total Environmental Investigation and Remediation Reserve		Portion of Total Related to MGP Investigation and Remediation
Exelon	$	342	$	280
Generation	55		—
ComEd	241		237
PECO	45		43
BGE	1		—

December 31, 2013	Total Environmental Investigation and Remediation Reserve		Portion of Total Related to MGP Investigation  and Remediation
Exelon	$	338	$	273
Generation	56		—
ComEd	234		229
PECO	47		44
BGE	1		—

Exelon Generation Co L L C [Member] | Equity Method Investments [Member]

Commitments And Contingencies Tables Disclosure [Line Items]

Other Commitments

As of September 30, 2014, Generation’s estimated commitment relating to its equity purchase agreements, including the in-kind services contributions, is anticipated to be as follows:

	Total
2014	$	27
2015	86
2016	34
2017	20
2018	15
Total	$	182