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 six months ended June 30, 2015 and 2014:



Three Months Ended June 30, 2015	Exelon			Generation			ComEd		PECO			BGE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	93		$	93		$	—	$	—		$	—
Non-regulatory agreement units	74			74			—		—			—
Net unrealized losses on decommissioning trust funds
Regulatory agreement units	(133		)	(133		)	—		—			—
Non-regulatory agreement units	(96		)	(96		)	—		—			—
Regulatory offset to decommissioning trust fund-related activities^(b)	28			28			—		—			—
Total decommissioning-related activities	(34		)	(34		)	—		—			—
Investment income (expense)	1			—			—		(1		)	1		^(c)
Long-term lease income	4			—			—		—			—
AFUDC — Equity	5			—			1		1			3
Other	7			3			4		1			—
Other, net	$	(17	)	$	(31	)	$	5	$	1		$	4



Six Months Ended June 30, 2015	Exelon			Generation			ComEd		PECO			BGE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	164		$	164		$	—	$	—		$	—
Non-regulatory agreement units	104			104			—		—			—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	(85		)	(85		)	—		—			—
Non-regulatory agreement units	(56		)	(56		)	—		—			—
Net unrealized gains on pledged assets
Zion Station decommissioning	9			9			—		—			—
Regulatory offset to decommissioning trust fund-related activities^(b)	(78		)	(78		)	—		—			—
Total decommissioning-related activities	58			58			—		—			—
Investment income (expense)	4			1			—		(1		)	2			^(c)
Long-term lease income	8			—			—		—			—
Interest income related to uncertain income tax positions	—			1			—		—			—
AFUDC — Equity	11			—			1		3			7
Terminated interest rate swaps ^(d)	(26		)	—			—		—			—
Other	9			2			8		1			(1		)
Other, net	$	64		$	62		$	9	$	3		$	8



Three Months Ended June 30, 2014	Exelon			Generation			ComEd		PECO			BGE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	68		$	68		$	—	$	—		$	—
Non-regulatory agreement units	38			38			—		—			—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	172			172			—		—			—
Non-regulatory agreement units	128			128			—		—			—
Net unrealized losses on pledged assets
Zion Station decommissioning	10			10			—		—			—
Regulatory offset to decommissioning trust fund-related activities^(b)	(204		)	(204		)	—		—			—
Total decommissioning-related activities	212			212			—		—			—
Investment income (expense)	7			7			—		(1		)	2		^(c)
Long-term lease income	10			—			—		—			—
Interest income related to uncertain income tax positions	(2		)	3
AFUDC — Equity	4			—			—		1			3
Other	(1		)	(6		)	5		1			—
Other, net	$	230		$	216		$	5	$	1		$	5



Six Months Ended June 30, 2014	Exelon			Generation			ComEd		PECO			BGE
Other, Net
Decommissioning-related activities:
Net realized income on decommissioning trust funds^(a)
Regulatory agreement units	$	111		$	111		$	—	$	—		$	—
Non-regulatory agreement units	63			63			—		—			—
Net unrealized gains on decommissioning trust funds
Regulatory agreement units	234			234			—		—			—
Non-regulatory agreement units	141			141			—		—			—
Net unrealized losses on pledged assets
Zion Station decommissioning	20			20			—		—			—
Regulatory offset to decommissioning trust fund-related activities^(b)	(299		)	(299		)	—		—			—
Total decommissioning-related activities	270			270			—		—			—
Investment income (expense)	8			8			—		(1		)	4			^(c)
Long-term lease income	17			—			—		—			—
Interest income related to uncertain income tax positions	7			17			—		—			—
AFUDC — Equity	12			—			3		3			6
Other	16			5			7		1			(1		)
Other, net	$	330		$	300		$	10	$	3		$	9

________


(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 2014 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 3 — Regulatory Matters of the Exelon 2014 Form 10-K for additional information regarding the rate stabilization deferral.

(d)

In January 2015, in connection with Generation's $750 million issuance of five-year Senior Unsecured Notes, Exelon terminated certain floating-to-fixed interest rate swaps. As the original forecasted transactions were a series of future interest payments over a ten year period, a portion of the anticipated interest payments are probable not to occur. As a result, $26 million of anticipated payments were reclassified from Accumulated OCI to Other, net in Exelon's Consolidated Statement of Operations and Comprehensive Income.

Supplemental Cash Flow Information

The following tables provide additional information regarding the Registrants’ Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014:



Six Months Ended June 30, 2015	Exelon		Generation		ComEd		PECO		BGE
Depreciation, amortization, accretion and depletion
Property, plant and equipment	$	1,087	$	485	$	312	$	119	$	143
Regulatory assets	101		—		40		12		49
Amortization of intangible assets, net	24		24		—		—		—
Amortization of energy contract assets and liabilities^(a)	—		1		—		—		—
Nuclear fuel^(b)	552		552		—		—		—
ARO accretion^(c)	193		193		—		—		—
Total depreciation, amortization, accretion and depletion	$	1,957	$	1,255	$	352	$	131	$	192



Six Months Ended June 30, 2014	Exelon		Generation		ComEd		PECO		BGE
Depreciation, amortization, accretion and depletion
Property, plant and equipment	$	1,015	$	444	$	290	$	112	$	142
Regulatory assets	117		—		57		5		55
Amortization of intangible assets, net	22		22		—		—		—
Amortization of energy contract assets and liabilities^(a)	113		118		—		—		—
Nuclear fuel^(b)	499		499		—		—		—
ARO accretion^(c)	159		159		—		—		—
Total depreciation, amortization, accretion and depletion	$	1,925	$	1,242	$	347	$	117	$	197

_________


(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.



Six Months Ended June 30, 2015	Exelon			Generation			ComEd			PECO				BGE
Other non-cash operating activities:
Pension and non-pension postretirement benefit costs	$	317		$	133		$	103		$	19			$	33
Loss from equity method investments	2			3			—			—				—
Provision for uncollectible accounts	80			11			35			24				11
Stock-based compensation costs	79			—			—			—				—
Other decommissioning-related activity^(a)	(50		)	(50		)	—			—				—
Energy-related options^(b)	27			27			—			—				—
Amortization of regulatory asset related to debt costs	—			—			—			—				—
Amortization of rate stabilization deferral	40			—			—			—				40
Amortization of debt fair value adjustment	(37		)	(6		)	—			—				—
Discrete impacts of EIMA^(c)	77			—			77			—				—
Amortization of debt costs	35			8			2			1				1
Lower of cost or market inventory adjustment	13			13			—			—				—
Other	(4		)	(5		)	5			1				(9		)
Total other non-cash operating activities	$	579		$	134		$	222		$	45			$	76
Changes in other assets and liabilities:
Under/over-recovered energy and transmission costs	$	45		$	—		$	10		$	27			$	8
Other regulatory assets and liabilities	47			—			26			(13		)		(18		)
Cash deposits^(d)	242			242			—			—				—
Other current assets	(53		)	(39		)	3			(74		)	^(e)	60
Other noncurrent assets and liabilities	(67		)	—			(14		)	—				1
Total changes in other assets and liabilities	$	214		$	203		$	25		$	(60	)		$	51
Non-cash investing and financing activities:
Indemnification of like-kind exchange position^(f)	$	—		$	—		$	3		$	—			$	—
Long-term software licensing agreement^(g)	95			—			—			—				—
Total non-cash investing and financing activities:	$	95		$	—		$	3		$	—			$	—



Six Months Ended June 30, 2014	Exelon			Generation			ComEd			PECO				BGE
Other non-cash operating activities:
Pension and non-pension postretirement benefit costs	$	315		$	139		$	96		$	21			$	33
Equity method investments	20			20			—			—				—
Provision for uncollectible accounts	59			8			(8		)	28				30
Stock-based compensation costs	68			—			—			—				—
Other decommissioning-related activity^(a)	(85		)	(85		)	—			—				—
Energy-related options^(b)	63			63			—			—				—
Amortization of rate stabilization deferral	33			—			—			—				33
Amortization of debt fair value adjustment	(26		)	(12		)	—			—				—
Discrete impacts from EIMA^(c)	9			—			9			—				—
Amortization of debt costs	19			6			(3		)	1				1
Other	(2		)	—			5			—				(8		)
Total other non-cash operating activities	$	473		$	139		$	99		$	50			$	89
Changes in other assets and liabilities:
Under/over-recovered energy and transmission costs	$	60		$	—		$	61		$	(6	)		$	8
Other regulatory assets and liabilities	(25		)	—			(30		)	(13		)		(49		)
Other current assets	(157		)	13			(5		)	(89		)	^(e)	51
Other noncurrent assets and liabilities	(158		)	(69		)	22			(6		)		(2		)
Total changes in other assets and liabilities	$	(280	)	$	(56	)	$	48		$	(114	)		$	8
Non-cash investing and financing activities:
Fair value of net assets recorded upon CENG consolidation	$	3,400		$	3,400		$	—		$	—			$	—
Issuance of equity units	131			—			—			—				—
Uranium procurement	38			38			—			—				—
Indemnification of like-kind exchange position^(f)	—			—			2			—				—
Total non-cash investing and financing activities	$	3,569		$	3,438		$	2		$	—			$	—

____________

(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 2014 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)	Relates primarily to cash deposits recalled from ISOs/RTOs and replaced with letters of credit.


(e)	Relates primarily to prepaid utility taxes.


(f)	See Note 12 — Income Taxes for discussion of the like-kind exchange tax position.


(g)	Relates to a long-term software license agreement entered into on May 31, 2015. Exelon is required to make payments starting August of 2015 through May of 2024. See Note 11 —Debt and Credit Agreements for additional information.

DOE Smart Grid Investment Grant (Exelon and PECO). For the six months ended June 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 $3 million related to PECO’s DOE SGIG programs. For the six months ended June 30, 2015 PECO had no capital expenditures or reimbursements, as the DOE SGIG program was completed during 2014. See Note 3 — Regulatory Matters of the Exelon 2014 Form 10-K for additional information regarding the DOE SGIG.

Supplemental Balance Sheet Information

The following tables provide additional information about assets of the Registrants as of June 30, 2015 and December 31, 2014.



June 30, 2015	Exelon			Generation			ComEd		PECO			BGE
Property, plant and equipment:
Accumulated depreciation and amortization	$	15,553	^(a)	$	8,146	^(a)	$	3,571	$	3,028		$	2,928
Accounts receivable:
Allowance for uncollectible accounts	323		^(c)	67			95		101		^(c)	60



December 31, 2014	Exelon			Generation			ComEd		PECO			BGE
Property, plant and equipment:
Accumulated depreciation and amortization	$	14,742	^(b)	$	7,612	^(b)	$	3,432	$	2,917		$	2,868
Accounts receivable:
Allowance for uncollectible accounts	311		^(c)	60			84		100		^(c)	67

_______


(a)	Includes accumulated amortization of nuclear fuel in the reactor core of $2,804 million.


(b)	Includes accumulated amortization of nuclear fuel in the reactor core of $2,673 million.


(c)	Includes an allowance for uncollectible accounts of $9 million and $7 million at June 30, 2015 and December 31, 2014, respectively, related to PECO's current installment plan receivables described below.

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 $16 million and $15 million as of June 30, 2015 and December 31, 2014, respectively. 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 2014 Form 10-K. The allowance for uncollectible accounts balance associated with these receivables at June 30, 2015 of $18 million consists of $1 million, $4 million and $13 million for low risk, medium risk and high risk segments, respectively. The allowance for uncollectible accounts balance at December 31, 2014 of $15 million consists of $1 million, $3 million and $11 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 June 30, 2015 and December 31, 2014 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 2014 Form 10-K.