Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2014

Environmental Loss Contingency Tables [Abstract]

Schedule of Government Settlement Agreements

Under the settlement agreement, Generation has received cumulative cash reimbursements for costs incurred as follows:

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(a)	Total after considering amounts due to co-owners of certain nuclear stations and to the former owner of Oyster Creek.


(b)	Includes $33 million and $30 million, respectively, for amounts received since April 1, 2014, for costs incurred under the CENG DOE Settlement Agreements prior to the consolidation of CENG.

As of December 31, 2014, and 2013, the amount of SNF storage costs for which reimbursement has been or will be requested from the DOE under the DOE settlement agreements is as follows:

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(a)	Recorded in Accounts receivable, other.


(b)	Recorded in Deferred debits and other assets, other


(c)	Non-CENG amounts owed to co-owners are recorded in Accounts receivable, other. CENG amounts owed to co-owners are recorded in Accounts payable. Represents amounts owed to the co-owners of Peach Bottom, Quad Cities, and Nine Mile Point Unit 2 generating facilities.

Energy Commitments

At December 31, 2014, Generation’s short- and long-term commitments, relating to the purchases from unaffiliated utilities and others of energy, capacity and transmission rights, are as indicated in the following tables:



	Net Capacity Purchases ^(a)		REC Purchases ^(b)		Transmission Rights Purchases ^(c)		Total
2015	$	418	$	152	$	20	$	590
2016	283		228		15		526
2017	222		121		15		358
2018	112		29		16		157
2019	117		5		16		138
Thereafter	279		1		35		315
Total	$	1,431	$	536	$	117	$	2,084

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(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 December 31, 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 December 31, 2014, capacity offsets were $132 million, $133 million, $136 million, $137 million, $138 million, and $591 million for years 2015, 2016, 2017, 2018, 2019, 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 of December 31, 2014 are as follows:



			Expiration within
	Total		2015		2016		2017		2018		2019		2020 and beyond
ComEd
Electric supply procurement ^(a)	$	620	$	329	$	151	$	140	$	—	$	—	$	—
Renewable energy and RECs ^(b)	1,517		75		76		77		78		84		1,127
PECO
Electric supply procurement ^(c)	609		527		82		—		—		—		—
AECs ^(d)	13		2		2		2		2		2		3
BGE
Electric supply procurement ^(e)	1,315		779		448		88		—		—		—
Curtailment services ^(f)	115		40		34		29		12		—		—

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(a)	ComEd is permitted to recover its electric supply procurement costs from retail customers with no mark-up. As of December 31, 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 2015 and 2016. 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 3 — 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 3 — Regulatory Matters for additional information.


(e)	BGE entered into various contracts for the procurement of electricity beginning 2015 through 2017. The cost of power under these contracts is recoverable under MDPSC approved fuel clauses. See Note 3 — 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 3 — Regulatory Matters for additional information.

Other Purchase Obligation

The Registrants’ other purchase obligations as of December 31, 2014, which primarily represent commitments for services, materials and information technology, are as follows:



			Expiration within
	Total		2015		2016		2017		2018		2019		2020 and beyond
Exelon	$	894	$	336	$	258	$	150	$	36	$	30	$	84
Generation ^(a)(b)	396		163		67		42		30		24		70
ComEd ^(c)	148		63		77		1		1		1		5
PECO ^(c)	7		3		4		—		—		—		—
BGE ^(c)	343		107		110		107		5		5		9

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(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 3 — Regulatory Matters for additional information.

Fuel Purchase Commitments

As of December 31, 2014, these commitments were as follows:



			Expiration within
	Total		2015		2016		2017		2018		2019		2020 and beyond
Generation	$	8,981	$	1,404	$	1,119	$	1,124	$	1,001	$	888	$	3,445
PECO	428		146		103		60		34		14		71
BGE	611		111		82		67		57		54		240

Commercial Commitments

PECO’s commercial commitments as of December 31, 2014, representing commitments potentially triggered by future events, were as follows:



			Expiration within
	Total		2015		2016		2017		2018		2019		2020 and beyond
Letters of credit (non-debt) ^(a)	$	22	$	22	$	—	$	—	$	—	$	—	$	—
Surety bonds^(b)	18		18		—		—		—		—		—
Performance guarantees^(c)	178		—		—		—		—		—		178
Total commercial commitments	$	218	$	40	$	—	$	—	$	—	$	—	$	178

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(a)	Letters of credit (non-debt)—PECO maintains non-debt letters of credit to provide credit support for certain transactions as requested by third parties.


(b)	Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds.


(c)	Performance guarantees—Reflects full and unconditional guarantee of Trust Preferred Securities of PECO Trust III and IV, which are 100% owned finance subsidiaries of PECO.

ComEd’s commercial commitments as of December 31, 2014, representing commitments potentially triggered by future events, were as follows:



			Expiration within
	Total		2015		2016		2017		2018		2019		2020 and beyond
Letters of credit (non-debt) ^(a)	$	17	$	17	$	—	$	—	$	—	$	—	$	—
Surety bonds^(b)	5		3		—		—		—		—		2
Performance guarantees ^(c)	200		—		—		—		—		—		200
Total commercial commitments	$	222	$	20	$	—	$	—	$	—	$	—	$	202

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(a)	Letters of credit (non-debt)—ComEd maintains non-debt letters of credit to provide credit support for certain transactions as requested by third parties.


(b)	Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds.


(c)	Performance guarantees—Reflects full and unconditional guarantee of Trust Preferred Securities of ComEd Financing III which is a 100% owned finance subsidiary of ComEd.

Exelon’s commercial commitments as of December 31, 2014, representing commitments potentially triggered by future events, were as follows:



			Expiration within
	Total		2015		2016		2017		2018		2019		2020 and beyond
Letters of credit (non-debt) ^(a)	$	1,233	$	1,151	$	77	$	5	$	—	$	—	$	—
Surety bonds^(b)	596		545		10		4		1		2		34
Performance guarantees ^(c)	1,239		472		20		20		20		20		687
Energy marketing contract guarantees ^(d)	3,220		3,220		—		—		—		—		—
Lease guarantees^(e)	40		—		—		—		—		—		40
Nuclear insurance premiums ^(f)	3,014		—		—		—		—		—		3,014
Underwriters discount ^(g)	60		60		—		—		—		—		—
Total commercial commitments	$	9,402	$	5,448	$	107	$	29	$	21	$	22	$	3,775

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(a)	Letters of credit (non-debt)—Exelon and certain of its subsidiaries maintain non-debt letters of credit to provide credit support for certain transactions as requested by third parties.


(b)	Surety bonds—Guarantees issued related to contract and commercial agreements, excluding bid bonds.


(c)	Performance guarantees—Guarantees issued to ensure performance under specific contracts. Additionally includes $200 million of Trust Preferred Securities of ComEd Financing III, $178 million of Trust Preferred Securities of PECO Trust III and IV and $250 million of Trust Preferred Securities of BGE Capital Trust II.

(d)

Energy marketing contract guarantees—Guarantees issued to ensure performance under energy commodity contracts. Amount includes approximately $3.2 billion of guarantees previously issued by Constellation on behalf of its Generation and NewEnergy business to allow it the flexibility needed to conduct business with counterparties without having to post other forms of collateral. The majority of these guarantees contain evergreen provisions that require the guarantee to remain in effect until cancelled. Exelon’s estimated net exposure for obligations under commercial transactions covered by these guarantees is approximately $0.6 billion at December 31, 2014, which represents the total amount Exelon could be required to fund based on December 31, 2014 market prices.


(e)	Lease guarantees—Guarantees issued to ensure payments on building leases.

(f)

Nuclear insurance premiums—Represents the maximum amount that Generation would be required to pay for retrospective premiums in the event of nuclear disaster at any domestic site 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.


(g)	Represents the underwriters discount for Exelon’s forward equity transaction. See Note 19 - Common Stock for further details of the equity securities offering.

BGE’s commercial commitments as of December 31, 2014, representing commitments potentially triggered by future events, were as follows:



			Expiration within
	Total		2015		2016		2017		2018		2019		2020 and beyond
Letters of credit (non-debt) ^(a)	$	1	$	1	$	—	$	—	$	—	$	—	$	—
Surety bonds ^(b)	11		11		—		—		—		—		—
Performance guarantees ^(c)	253		3		—		—		—		—		250
Total commercial commitments	$	265	$	15	$	—	$	—	$	—	$	—	$	250

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(a)	Letters of credit (non-debt)—BGE maintains non-debt letters of credit to provide credit support for certain transactions as requested by third parties.


(b)	Surety bond—Guarantees issued related to contract and commercial agreements, excluding bid bonds.


(c)	Performance guarantee—Reflects full and unconditional guarantee of Trust Preferred Securities of BGE Capital Trust which is an unconsolidated VIE of BGE.

Generation’s commercial commitments as of December 31, 2014, representing commitments potentially triggered by future events, were as follows:



			Expiration within
	Total		2015		2016		2017		2018		2019		2020 and beyond
Letters of credit (non-debt) ^(a)	$	1,187	$	1,106	$	76	$	5	$	—	$	—	$	—
Surety bonds	481		468		3		—		—		—		10
Performance guarantees ^(b)	458		319		20		20		20		20		59
Energy marketing contract guarantees ^(c)	1,244		1,244		—		—		—		—		—
Nuclear insurance premiums ^(d)	3,014		—		—		—		—		—		3,014
Total commercial commitments	$	6,384	$	3,137	$	99	$	25	$	20	$	20	$	3,083

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


(b)	Performance guarantees—Guarantees issued to ensure performance under specific contracts.

(c)

Energy marketing contract guarantees—Guarantees issued to ensure performance under energy commodity contracts. Amount includes approximately $1.2 billion of guarantees previously issued by Constellation on behalf of its Generation and NewEnergy business to allow it the flexibility needed to conduct business with counterparties without having to post other forms of collateral. The majority of these guarantees contain evergreen provisions that require the guarantee to remain in effect until cancelled. Generation’s estimated net exposure for obligations under commercial transactions covered by these guarantees is approximately $0.4 billion at December 31, 2014, which represents the total amount Generation could be required to fund based on December 31, 2014 market prices.

(d)

Nuclear insurance premiums — 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.

Other Commitments

The commitment includes approximately $20 million of in-kind services. As of December 31, 2014, Generation’s estimated commitment relating to its equity purchase agreements, including the in-kind services contributions, is anticipated to be as follows:



	Total
2015	$	98
2016	38
2017	20
2018	11
Total	$	167

Operating Leases Of Lessee Disclosure

Minimum future operating lease payments, including lease payments for vehicles, real estate, computers, rail cars, operating equipment and office equipment, as of December 31, 2014 were:



	Exelon			Generation ^(b)			ComEd ^(c)		PECO ^(c)		BGE ^(c)(d)
2015	$	99		$	51		$	14	$	3	$	13
2016	102			57			13		3		11
2017	102			63			8		3		10
2018	86			57			4		3		9
2019	70			43			4		2		7
Remaining years	699			628			2		—		27
Total minimum future lease payments	$	1,158	^(a)	$	899	^(a)	$	45	$	14	$	77

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(a)	Excludes Generation’s PPAs and tolling arrangements that are accounted for as contingent operating lease payments, since these expected cash outflows are already disclosed in the Net Capacity Purchases table under the Energy Commitment.

(b)

The Generation column above now includes minimum future lease payments associated with a 20-year lease agreement for the Baltimore headquarters that became effective during the second quarter of 2014. Generation’s total commitments under the lease agreement are $0 in 2015, and $5 million, $12 million, $13 million, $13 million, and $285 million related to years 2016, 2017, 2018, 2019, and thereafter, respectively, for a total of $328 million .

(c)

Amounts related to certain real estate leases and railroad licenses effectively have indefinite payment periods. As a result, ComEd, PECO and BGE have excluded these payments from the remaining years, as such amounts would not be meaningful. ComEd’s, PECO’s, and BGE’s annual obligation for these arrangements, included in each of the years 2015—2019, was $2 million, $3 million, and $2 million respectively.


(d)	Includes all future lease payments on a 99 year real estate lease that expires in 2106.

Operating Leases Rent Expense

The following table presents the Registrants’ rental expense under operating leases for the years ended December 31, 2014, 2013 and 2012:



For the Year Ended December 31,	Exelon		Generation ^(a)		ComEd		PECO		BGE
2014	$	865	$	806	$	15	$	14	$	12
2013	806		744		15		21		11
2012	930		872		18		27		12

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(a)

Includes Generation’s PPAs and other capacity contracts that are accounted for as operating leases and are reflected as net capacity purchases in the Energy Commitments table above. These agreements are considered contingent operating lease payments and are not included in the minimum future operating lease payments table above. Payments made under Generation’s PPAs and other capacity contracts totaled $755 million, $694 million and $801 million during 2014, 2013 and 2012, respectively.

Accrued environmental liabilities

As of December 31, 2014 and 2013, the Registrants have 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:



December 31, 2014	Total environmental investigation and remediation reserve		Portion of total related to MGP investigation and remediation
Exelon	$	347	$	277
Generation	63		—
ComEd	238		235
PECO	45		42
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		—

Cumulative cash reimbursements ^(b)