Property, Plant and Equipment (Exelon, Generation, ComEd, PECO and BGE)

Exelon

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2014 and 2013:



	Average Service Life (years)	2014		2013
Asset Category
Electric—transmission and distribution	5-90	$	30,157	$	28,123
Electric—generation	1-56	22,911		20,420
Gas—transportation and distribution	5-90	3,505		3,296
Common—electric and gas	5-50	1,169		1,101
Nuclear fuel ^(a)	1-8	5,947		5,196
Construction work in progress	N/A	2,167		1,890
Other property, plant and equipment ^(b)	5-50	973		1,017
Total property, plant and equipment		66,829		61,043
Less: accumulated depreciation ^(c)		14,742		13,713
Property, plant and equipment, net		$	52,087	$	47,330

_________________________


(a)	Includes nuclear fuel that is in the fabrication and installation phase of $1,003 million and $947 million at December 31, 2014 and 2013, respectively.

(b)

Includes Generation’s buildings under capital lease with a net carrying value of $15 million and $23 million at December 31, 2014 and 2013, respectively. The original cost basis of the buildings was $52 million and $59 million, and total accumulated amortization was $37 million and $36 million, as of December 31, 2014 and 2013, respectively. Also includes ComEd’s buildings under capital lease with a net carrying value at both December 31, 2014 and 2013, of $8 million. The original cost basis of the buildings was $8 million and total accumulated amortization was immaterial as of December 31, 2014 and 2013, respectively. Includes land held for future use and non utility property at ComEd, PECO, and BGE of $57 million, $21 million, and $32 million, respectively. These balances also include capitalized acquisition, development and exploration costs of $242 million related to oil and gas production activities at Generation.


(c)	Includes accumulated amortization of nuclear fuel in the reactor core at Generation of $2,673 million and $2,371 million as of December 31, 2014 and 2013, respectively.

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.



Average Service Life Percentage by Asset Category	2014		2013		2012
Electric—transmission and distribution	2.93	%	2.91	%	2.76	%
Electric—generation	3.50	%	3.35	%	3.15	%
Gas	2.13	%	2.06	%	2.03	%
Common—electric and gas	7.32	%	7.53	%	7.61	%

Generation

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2014 and 2013:



	Average Service Life (years)	2014			2013
Asset Category
Electric—generation	1-56	$	22,911	19,004,000,000	$	20,420
Nuclear fuel ^(a)	1-8	5,947		4,815,000,000	5,196
Construction work in progress	N/A	1,404		1,352,000,000	1,129
Other property, plant and equipment ^(b)	6-31	295		374,000,000	400
Total property, plant and equipment		30,557			27,145
Less: accumulated depreciation ^(c)		7,612			7,034
Property, plant and equipment, net		$	22,945		$	20,111

_________________________


(a)	Includes nuclear fuel that is in the fabrication and installation phase of $1,003 million and $947 million at December 31, 2014 and 2013, respectively.

(b)

Includes buildings under capital lease with a net carrying value of $15 million and $23 million at December 31, 2014 and 2013, respectively. The original cost basis of the buildings was $52 million and $59 million, and total accumulated amortization was $37 million and $36 million, as of December 31, 2014 and 2013, respectively. These balances also include capitalized acquisition, development and exploration costs of $242 million related to oil and gas production activities.


(c)	Includes accumulated amortization of nuclear fuel in the reactor core of $2,673 million and $2,371 million as of December 31, 2014 and 2013, respectively.

The annual depreciation provisions as a percentage of average service life for electric generation assets were 3.5%, 3.35% and 3.15% for the years ended December 31, 2014, 2013 and 2012, respectively.

License Renewals. Generation’s depreciation provisions are based on the estimated useful lives of its generating stations, which assume the renewal of the licenses for all nuclear generating stations (except for Oyster Creek) and the hydroelectric generating stations. As a result, the receipt of license renewals has no impact on the Consolidated Statements of Operations. See Note 3—Regulatory Matters for additional information regarding license renewals.

ComEd

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2014 and 2013:



	Average Service Life (years)	2014		2013
Asset Category
Electric—transmission and distribution	5-80	$	18,884	$	17,334
Construction work in progress	N/A	276		456
Other property, plant and equipment ^(a)	39-50	65		60
Total property, plant and equipment		19,225		17,850
Less: accumulated depreciation		3,432		3,184
Property, plant and equipment, net		$	15,793	$	14,666

_________________________


(a)	Includes buildings under capital lease with a net carrying value at both of December 31, 2014 and 2013, of $8 million. The original cost basis of the buildings was $8 million and total accumulated amortization was immaterial as of December 31, 2014 and 2013, respectively.

The annual depreciation provisions as a percentage of average service life for electric transmission and distribution assets were 3.05%, 2.97% and 2.79% for the years ended December 31, 2014, 2013 and 2012, respectively.

PECO

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2014 and 2013:



	Average Service Life (years)	2014		2013
Asset Category
Electric—transmission and distribution	5-65	$	6,886	$	6,669
Gas—transportation and distribution	5-70	2,039		1,932
Common—electric and gas	5-50	618		600
Construction work in progress	N/A	154		101
Other property, plant and equipment ^(a)	50	21		17
Total property, plant and equipment		9,718		9,319
Less: accumulated depreciation		2,917		2,935
Property, plant and equipment, net		$	6,801	$	6,384

_________________________


(a)	Represents land held for future use and non utility property.

The following table presents the annual depreciation provisions as a percentage of average service life for each asset category.



Average Service Life Percentage by Asset Category	2014		2013		2012
Electric—transmission and distribution	2.55	%	2.73	%	2.51	%
Gas	1.84	%	1.79	%	1.77	%
Common—electric and gas	5.16	%	6.65	%	7.54	%

BGE

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2014 and 2013:



	Average Service Life (years)	2014		2013
Asset Category
Electric—transmission and distribution	5-90	$	6,339	$	6,100
Gas—distribution	5-90	1,761		1,660
Common—electric and gas	5-40	623		578
Construction work in progress	N/A	317		196
Other property, plant and equipment ^(a)	20	32		32
Total property, plant and equipment		9,072		8,566
Less: accumulated depreciation		2,868		2,702
Property, plant and equipment, net		$	6,204	$	5,864

_______________________


(a)	Represents land held for future use and non utility property.



Average Service Life Percentage by Asset Category	2014		2013		2012
Electric—transmission and distribution	2.96	%	2.91	%	2.92	%
Gas	2.47	%	2.36	%	2.33	%
Common—electric and gas	9.49	%	8.45	%	7.68	%

See Note 1—Significant Accounting Policies for further information regarding property, plant and equipment policies and accounting for capitalized software costs for Exelon, Generation, ComEd, PECO and BGE. See Note 13—Debt and Credit Agreements for further information regarding Exelon’s, ComEd’s, and PECO’s property, plant and equipment subject to mortgage liens.