Severance (Exelon, Generation, ComEd, PECO and BGE)

9 Months Ended

Sep. 30, 2015

Severance (Exelon, Generation, ComEd, PECO and BGE)

The Registrants have an ongoing severance plan under which, in general, the longer an employee worked prior to termination the greater the amount of severance benefits. The Registrants record a liability and expense or regulatory asset for severance once terminations are probable of occurrence and the related severance benefits can be reasonably estimated. For severance benefits that are incremental to its ongoing severance plan (“one-time termination benefits”), the Registrants measure the obligation and record the expense at fair value at the communication date if there are no future service requirements, or, if future service is required to receive the termination benefit, ratably over the required service period.

Ongoing Severance Plans

The Registrants provide severance, health and welfare benefits under Exelon’s ongoing severance benefit plans to terminated employees in the normal course of business. These benefits are accrued for when the benefits are considered probable and can be reasonably estimated.

For the three and nine months ended September 30, 2015 and 2014, the Registrants recorded the following severance costs (benefits) associated with these ongoing severance benefits within Operating and maintenance expense in their Consolidated Statements of Operations and Comprehensive Income:



	Exelon			Generation			ComEd		PECO		BGE
Three Months Ended
September 30, 2015	$	(3	)	$	(3	)	$	—	$	—	$	—
September 30, 2014	(2		)	(2		)	—		—		—

Nine Months Ended
September 30, 2015	$	18		$	17		$	1	$	—	$	—
September 30, 2014	4			3			1		—		—

The severance liability balances associated with these ongoing severance benefits as of September 30, 2015 and December 31, 2014 are not material.