Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2015



		June 30, 2015						December 31, 2014
		Exelon		Generation		BGE		Exelon		Generation			BGE
Cash and cash equivalents		$	240	$	240	$	—	$	392	$	392	$	—
Restricted cash			145		121		24		117		96		21
Accounts receivable, net
	Customer		179		179		—		297		297		—
	Other		29		29		—		57		57		—
Mark-to-market derivatives assets			96		96		—		171		171		—
Inventory
	Materials and supplies		178		178		—		172		172		—
Other current assets			32		25		—		33		26		—
	Total current assets		899		868		24		1,239		1,211		21

Property, plant and equipment, net			4,811		4,811		—		4,638		4,638		—
Nuclear decommissioning trust funds			2,096		2,096		—		2,097		2,097		—
Goodwill			47		47		—		47		47		—
Mark-to-market derivatives assets			45		45		—		44		44		—
Other noncurrent assets			91		82		3		95		82		3
Total noncurrent assets			7,090		7,081		3		6,921		6,908		3
	Total assets	$	7,989	$	7,949	$	27	$	8,160	$	8,119	$	24

Long-term debt due within one year		$	88	$	5	$	77	$	87	$	5	$	75
Accounts payable			143		143		—		292		292		—
Accrued expenses			87		84		1		111		108		2
Mark-to-market derivative liabilities			8		8		—		24		24		—
Unamortized energy contract liabilities			9		9		—		22		22		—
Other current liabilities			13		13		—		25		25		—
	Total current liabilities		348		262		78		561		476		77

Long-term debt			166		79		81		212		81		120
Asset retirement obligations			1,865		1,865		—		1,763		1,763		—
Pension obligation^(a)			9		9		—		9		9		—
Unamortized energy contract liabilities			45		45		—		51		51		—
	Other noncurrent liabilities		122		122		—		127		127		—
	Noncurrent liabilities		2,207		2,120		81		2,162		2,031		120
	Total liabilities	$	2,555	$	2,382	$	159	$	2,723	$	2,507	$	197

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(a)	Includes CNEG retail gas pension obligation, which is presented as a net asset balance within the Prepaid Pension asset line item on Generation’s balance sheet. See Note 14 — Retirement Benefits for additional details.

The following tables present summary information about Exelon and Generation’s significant unconsolidated VIE entities:



June 30, 2015	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	260	$	127	$	387
Total liabilities^(a)	29		61		90
Exelon's ownership interest in VIE^(a)	—		16		16
Other ownership interests in VIE^(a)	231		51		282
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		19		19
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	23		—		23



December 31, 2014	Commercial Agreement VIEs		Equity Investment VIEs		Total
Total assets^(a)	$	114	$	91	$	205
Total liabilities^(a)	3		49		52
Exelon's ownership interest in VIE^(a)	—		9		9
Other ownership interests in VIE^(a)	111		33		144
Registrants’ maximum exposure to loss:
Carrying amount of equity method investments	—		13		13
Contract intangible asset	9		—		9
Debt and payment guarantees	—		3		3
Net assets pledged for Zion Station decommissioning^(b)	27		—		27

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(a)

These items represent amounts on the unconsolidated VIE balance sheets, not on Exelon’s or Generation’s Consolidated Balance Sheets. These items are included to provide information regarding the relative size of the unconsolidated VIEs. Exelon corrected an error in the December 31, 2014 balances within Commercial Agreement VIEs for an overstatement of Total assets, Total liabilities and Other ownership interests in VIE of $392 million, $234 million and $158 million, respectively. The error is not considered material to any prior period.

(b)

These items represent amounts on Exelon’s and Generation’s Consolidated Balance Sheets related to the asset sale agreement with ZionSolutions, LLC. The net assets pledged for Zion Station decommissioning include, gross pledged assets of $264 million and $319 million as of June 30, 2015 and December 31, 2014, respectively; offset by payables to ZionSolutions, LLC of $241 million and $292 million as of June 30, 2015 and December 31, 2014, respectively. These items are included to provide information regarding the relative size of the ZionSolutions, LLC unconsolidated VIE.

The carrying amounts and classification of the consolidated VIEs’ assets and liabilities included in Exelon’s, Generation’s, and BGE’s consolidated financial statements at June 30, 2015 and December 31, 2014 are as follows:



	June 30, 2015						December 31, 2014
	Exelon^(a)		Generation		BGE		Exelon^(a)		Generation		BGE
Current assets	$	924	$	894	$	24	$	1,271	$	1,242	$	21
Noncurrent assets	7,731		7,723		3		7,580		7,566		3
Total assets	$	8,655	$	8,617	$	27	$	8,851	$	8,808	$	24

Current liabilities	$	378	$	292	$	79	$	611	$	526	$	77
Noncurrent liabilities	2,860		2,773		81		2,730		2,600		120
Total liabilities	$	3,238	$	3,065	$	160	$	3,341	$	3,126	$	197

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(a)	Includes certain purchase accounting adjustments not pushed down to the BGE standalone entity.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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