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, 2015 and 2014:



	Average Service Life (years)	2015		2014
Asset Category
Electric—transmission and distribution	5-90	$	32,546	$	30,157
Electric—generation	1-56	25,615		22,911
Gas—transportation and distribution	5-90	3,864		3,505
Common—electric and gas	5-50	1,149		1,169
Nuclear fuel ^(a)	1-8	6,384		5,947
Construction work in progress	N/A	3,075		2,167
Other property, plant and equipment ^(b)	5-50	1,181		1,056
Total property, plant and equipment		73,814		66,912
Less: accumulated depreciation ^(c)		16,375		14,742
Property, plant and equipment, net		$	57,439	$	52,170

_________________________


(a)	Includes nuclear fuel that is in the fabrication and installation phase of $1,266 million and $1,003 million at December 31, 2015 and 2014, respectively.

(b)

Includes Generation’s buildings under capital lease with a net carrying value of $13 million and $15 million at December 31, 2015 and 2014, respectively. The original cost basis of the buildings was $52 million, and total accumulated amortization was $39 million and $37 million, as of December 31, 2015 and 2014, respectively. Also includes ComEd’s buildings under capital lease with a net carrying value at December 31, 2015 and 2014, of $7 million and $8 million, respectively. The original cost basis of the buildings was $8 million and total accumulated amortization was $1 million and $0.3 million as of December 31, 2015 and 2014, 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 $266 million and $242 million related to oil and gas production activities at Generation at December 31, 2015 and 2014, respectively. Includes the original cost and progress payments associated with Generation’s turbine equipment held for future use with a carrying value of $146 million and $83 million at December 31, 2015 and 2014, respectively.


(c)	Includes accumulated amortization of nuclear fuel in the reactor core at Generation of $2,861 million and $2,673 million as of December 31, 2015 and 2014, 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	2015		2014		2013
Electric—transmission and distribution	2.83	%	2.93	%	2.91	%
Electric—generation	3.47	%	3.50	%	3.35	%
Gas	2.17	%	2.13	%	2.06	%
Common—electric and gas	7.79	%	7.32	%	7.53	%

Generation

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2015 and 2014:



	Average Service Life (years)	2015			2014
Asset Category
Electric—generation	1-56	$	25,615	19,004,000,000	$	22,911
Nuclear fuel ^(a)	1-8	6,384		4,815,000,000	5,947
Construction work in progress	N/A	2,017		1,352,000,000	1,404
Other property, plant and equipment ^(b)	5-31	466		374,000,000	378
Total property, plant and equipment		34,482			30,640
Less: accumulated depreciation ^(c)		8,639			7,612
Property, plant and equipment, net		$	25,843		$	23,028

_________________________


(a)	Includes nuclear fuel that is in the fabrication and installation phase of $1,266 million and $1,003 million at December 31, 2015 and 2014, respectively.

(b)

Includes buildings under capital lease with a net carrying value of $13 million and $15 million at December 31, 2015 and 2014, respectively. The original cost basis of the buildings was $52 million, and total accumulated amortization was $39 million and $37 million, as of December 31, 2015 and 2014, respectively. These balances also include capitalized acquisition, development and exploration costs of $266 million and $242 million related to oil and gas production activities at Generation at December 31, 2015 and 2014, respectively. Includes the original cost and progress payments associated with Generation’s turbine equipment held for future use with a carrying value of $146 million and $83 million at December 31, 2015 and 2014, respectively.


(c)	Includes accumulated amortization of nuclear fuel in the reactor core of $2,861 million and $2,673 million as of December 31, 2015 and 2014, respectively.

The annual depreciation provisions as a percentage of average service life for electric generation assets were 3.47%, 3.50% and 3.35% for the years ended December 31, 2015, 2014 and 2013, 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 material impact on the Consolidated Statements of Operations and Comprehensive Income. 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, 2015 and 2014:



	Average Service Life (years)	2015		2014
Asset Category
Electric—transmission and distribution	5-80	$	20,576	$	18,884
Construction work in progress	N/A	572		276
Other property, plant and equipment ^{(a), (b)}	38-50	64		65
Total property, plant and equipment		21,212		19,225
Less: accumulated depreciation		3,710		3,432
Property, plant and equipment, net		$	17,502	$	15,793

_________________________


(a)	Includes buildings under capital lease with a net carrying value at December 31, 2015 and 2014 of $7 million and $8 million, respectively. The original cost basis of the buildings was $8 million and total accumulated amortization was $1 million and $0.3 million as of December 31, 2015 and 2014, respectively.


(b)	Includes land held for future use and non-utility property.

The annual depreciation provisions as a percentage of average service life for electric transmission and distribution assets were 3.03%, 3.05% and 2.97% for the years ended December 31, 2015, 2014 and 2013, respectively.

PECO

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2015 and 2014:



	Average Service Life (years)	2015		2014
Asset Category
Electric—transmission and distribution	5-65	$	7,230	$	6,886
Gas—transportation and distribution	5-70	2,206		2,039
Common—electric and gas	5-50	631		618
Construction work in progress	N/A	154		154
Other property, plant and equipment ^(a)	50	21		21
Total property, plant and equipment		10,242		9,718
Less: accumulated depreciation		3,101		2,917
Property, plant and equipment, net		$	7,141	$	6,801

_________________________


(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	2015		2014		2013
Electric—transmission and distribution	2.39	%	2.55	%	2.73	%
Gas	1.87	%	1.84	%	1.79	%
Common—electric and gas	5.16	%	5.16	%	6.65	%

BGE

The following table presents a summary of property, plant and equipment by asset category as of December 31, 2015 and 2014:



	Average Service Life (years)	2015		2014
Asset Category
Electric—transmission and distribution	5-90	$	6,663	$	6,339
Gas—distribution	5-90	1,951		1,761
Common—electric and gas	5-40	655		623
Construction work in progress	N/A	312		317
Other property, plant and equipment ^(a)	20	32		32
Total property, plant and equipment		9,613		9,072
Less: accumulated depreciation		3,016		2,868
Property, plant and equipment, net		$	6,597	$	6,204

_______________________


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



Average Service Life Percentage by Asset Category	2015		2014		2013
Electric—transmission and distribution	2.62	%	2.96	%	2.91	%
Gas	2.50	%	2.47	%	2.36	%
Common—electric and gas	10.35	%	9.49	%	8.45	%

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 14—Debt and Credit Agreements for further information regarding Exelon’s, ComEd’s, and PECO’s property, plant and equipment subject to mortgage liens.