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

12 Months Ended

Dec. 31, 2015

Restructuring and Related Activities [Abstract]

Severance (Exelon, Generation, ComEd and PECO)

(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 years ended December 31, 2015, 2014, and 2013, the Registrants recorded the following severance costs associated with these ongoing severance benefits within Operating and maintenance expense in their Consolidated Statements of Operations and Comprehensive Income:

Severance Benefits^(a)

Severance Charges-2015

Severance Charges-2014

Severance Charges-2013

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(a) The amounts above for Generation include $1 million, $1 million, and $2 million for amounts billed by BSC through intercompany allocations for the years ended December 31, 2015, December 31, 2014, and December 31, 2013, respectively. Amounts billed by BSC to ComEd, PECO and BGE were not material.

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