UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Quarterly Period Ended September 30, 2016
or
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number |
Name of Registrant; State or Other Jurisdiction of Incorporation; Address |
IRS Employer Identification Number |
||||
1-16169 |
EXELON CORPORATION | 23-2990190 | ||||
(a Pennsylvania corporation) 10 South Dearborn Street P.O. Box 805379 Chicago, Illinois 60680-5379 (800) 483-3220 |
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333-85496 |
EXELON GENERATION COMPANY, LLC | 23-3064219 | ||||
(a Pennsylvania limited liability company) 300 Exelon Way Kennett Square, Pennsylvania 19348-2473 (610) 765-5959 |
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1-1839 |
COMMONWEALTH EDISON COMPANY | 36-0938600 | ||||
(an Illinois corporation) 440 South LaSalle Street Chicago, Illinois 60605-1028 (312) 394-4321 |
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000-16844 |
PECO ENERGY COMPANY | 23-0970240 | ||||
(a Pennsylvania corporation) P.O. Box 8699 2301 Market Street Philadelphia, Pennsylvania 19101-8699 (215) 841-4000 |
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1-1910 |
BALTIMORE GAS AND ELECTRIC COMPANY | 52-0280210 | ||||
(a Maryland corporation) 2 Center Plaza 110 West Fayette Street Baltimore, Maryland 21201-3708 (410) 234-5000 |
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001-31403 |
PEPCO HOLDINGS LLC | 52-2297449 | ||||
(a Delaware limited liability company) 701 Ninth Street, N.W. Washington, District of Columbia 20068 (202) 872-2000 |
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001-01072 |
POTOMAC ELECTRIC POWER COMPANY | 53-0127880 | ||||
(a District of Columbia and Virginia corporation) 701 Ninth Street, N.W. Washington, District of Columbia 20068 (202) 872-2000 |
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001-01405 |
DELMARVA POWER & LIGHT COMPANY | 51-0084283 | ||||
(a Delaware and Virginia corporation) 500 North Wakefield Drive Newark, Delaware 19702 (202) 872-2000 |
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001-03559 |
ATLANTIC CITY ELECTRIC COMPANY | 21-0398280 | ||||
(a New Jersey corporation) 500 North Wakefield Drive Newark, Delaware 19702 (202) 872-2000 |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer | Accelerated Filer | Non-accelerated Filer | Smaller Reporting Company | |||||
Exelon Corporation |
x | |||||||
Exelon Generation Company, LLC |
x | |||||||
Commonwealth Edison Company |
x | |||||||
PECO Energy Company |
x | |||||||
Baltimore Gas and Electric Company |
x | |||||||
Pepco Holdings LLC |
x | |||||||
Potomac Electric Power Company |
x | |||||||
Delmarva Power & Light Company |
x | |||||||
Atlantic City Electric Company |
x |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ¨ No x
The number of shares outstanding of each registrants common stock as of September 30, 2016 was:
Exelon Corporation Common Stock, without par value |
923,270,314 | |
Exelon Generation Company, LLC |
not applicable | |
Commonwealth Edison Company Common Stock, $12.50 par value |
127,017,143 | |
PECO Energy Company Common Stock, without par value |
170,478,507 | |
Baltimore Gas and Electric Company Common Stock, without par value |
1,000 | |
Pepco Holdings LLC |
not applicable | |
Potomac Electric Power Company Common Stock, $.01 par value |
100 | |
Delmarva Power & Light Company Common Stock, $2.25 par value |
1,000 | |
Atlantic City Electric Company Common Stock, $3.00 par value |
8,546,017 |
Page No. | ||||||
FILING FORMAT | 9 | |||||
FORWARD-LOOKING STATEMENTS | 9 | |||||
WHERE TO FIND MORE INFORMATION | 9 | |||||
PART I. | 10 | |||||
ITEM 1. | 10 | |||||
Exelon Corporation |
||||||
Consolidated Statements of Operations and Comprehensive Income |
11 | |||||
12 | ||||||
13 | ||||||
15 | ||||||
Exelon Generation Company, LLC |
||||||
Consolidated Statements of Operations and Comprehensive Income |
16 | |||||
17 | ||||||
18 | ||||||
20 | ||||||
Commonwealth Edison Company |
||||||
Consolidated Statements of Operations and Comprehensive Income |
21 | |||||
22 | ||||||
23 | ||||||
25 | ||||||
PECO Energy Company |
||||||
Consolidated Statements of Operations and Comprehensive Income |
26 | |||||
27 | ||||||
28 | ||||||
30 | ||||||
Baltimore Gas and Electric Company |
||||||
Consolidated Statements of Operations and Comprehensive Income |
31 | |||||
32 | ||||||
33 | ||||||
35 | ||||||
Pepco Holdings LLC |
||||||
Consolidated Statements of Operations and Comprehensive Income |
36 | |||||
37 | ||||||
38 | ||||||
40 |
1
Page No. | ||||||
Potomac Electric Power Company |
||||||
41 | ||||||
42 | ||||||
43 | ||||||
45 | ||||||
Delmarva Power & Light Company |
||||||
46 | ||||||
47 | ||||||
48 | ||||||
50 | ||||||
Atlantic City Electric Company |
||||||
Consolidated Statements of Operations and Comprehensive Income |
51 | |||||
52 | ||||||
53 | ||||||
55 | ||||||
56 | ||||||
56 | ||||||
58 | ||||||
63 | ||||||
70 | ||||||
78 | ||||||
94 | ||||||
95 | ||||||
98 | ||||||
122 | ||||||
141 | ||||||
145 | ||||||
151 | ||||||
154 | ||||||
157 | ||||||
160 | ||||||
164 | ||||||
165 | ||||||
166 | ||||||
180 | ||||||
187 |
2
Page No. | ||||||
ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
197 | ||||
197 | ||||||
197 | ||||||
198 | ||||||
223 | ||||||
224 | ||||||
274 | ||||||
287 | ||||||
ITEM 3. | 288 | |||||
ITEM 4. | 297 | |||||
PART II. | 299 | |||||
ITEM 1. | 299 | |||||
ITEM 1A. | 299 | |||||
ITEM 4. | 300 | |||||
ITEM 6. | 301 | |||||
SIGNATURES | 303 | |||||
303 | ||||||
303 | ||||||
303 | ||||||
304 | ||||||
304 | ||||||
304 | ||||||
305 | ||||||
305 | ||||||
305 |
3
GLOSSARY OF TERMS AND ABBREVIATIONS
Exelon Corporation and Related Entities | ||
Exelon |
Exelon Corporation | |
Generation |
Exelon Generation Company, LLC | |
ComEd |
Commonwealth Edison Company | |
PECO |
PECO Energy Company | |
BGE |
Baltimore Gas and Electric Company | |
Pepco Holdings or PHI |
Pepco Holdings LLC (formerly Pepco Holdings, Inc.) | |
Pepco |
Potomac Electric Power Company | |
Pepco Energy Services or PES |
Pepco Energy Services, Inc. and its subsidiaries | |
PCI |
Potomac Capital Investment Corporation and its subsidiaries | |
DPL |
Delmarva Power & Light Company | |
ACE |
Atlantic City Electric Company | |
ACE Funding or ATF |
Atlantic City Electric Transition Funding LLC | |
BSC |
Exelon Business Services Company, LLC | |
PHISCO |
PHI Service Company | |
Exelon Corporate |
Exelon in its corporate capacity as a holding company | |
PHI Corporate |
PHI in its corporate capacity as a holding company | |
CENG |
Constellation Energy Nuclear Group, LLC | |
Constellation |
Constellation Energy Group, Inc. | |
Antelope Valley |
Antelope Valley Solar Ranch One | |
Exelon Transmission Company |
Exelon Transmission Company, LLC | |
Exelon Wind |
Exelon Wind, LLC and Exelon Generation Acquisition Company, LLC | |
Ventures |
Exelon Ventures Company, LLC | |
AmerGen |
AmerGen Energy Company, LLC | |
BondCo |
RSB BondCo LLC | |
PEC L.P. |
PECO Energy Capital, L.P. | |
PECO Trust III |
PECO Capital Trust III | |
PECO Trust IV |
PECO Energy Capital Trust IV | |
PETT |
PECO Energy Transition Trust | |
Registrants |
Exelon, Generation, ComEd, PECO, BGE, PHI, Pepco, DPL and ACE, collectively | |
Utility Registrants |
ComEd, PECO, BGE, Pepco, DPL and ACE, collectively | |
Legacy PHI |
PHI, Pepco, DPL and ACE, collectively | |
ConEdison Solutions |
The competitive retail electricity and natural gas business of Consolidated Edison Solutions, Inc., a subsidiary of Consolidated Edison, Inc. | |
Other Terms and Abbreviations |
||
Note of the Exelon 2015 Form 10-K |
Reference to specific Combined Note to Consolidated Financial Statements within Exelons 2015 Annual Report on Form 10-K | |
Note of the PHI 2015 Form 10-K |
Reference to specific Note to Consolidated Financial Statements within Legacy PHIs 2015 Annual Report on Form 10-K | |
1998 restructuring settlement |
PECOs 1998 settlement of its restructuring case mandated by the Competition Act | |
Act 11 |
Pennsylvania Act 11 of 2012 | |
Act 129 |
Pennsylvania Act 129 of 2008 | |
AEC |
Alternative Energy Credit that is issued for each megawatt hour of generation from a qualified alternative energy source | |
AEPS |
Pennsylvania Alternative Energy Portfolio Standards | |
AEPS Act |
Pennsylvania Alternative Energy Portfolio Standards Act of 2004, as amended |
4
GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations |
||
AESO |
Alberta Electric Systems Operator | |
AFUDC |
Allowance for Funds Used During Construction | |
ALJ |
Administrative Law Judge | |
AMI |
Advanced Metering Infrastructure | |
AMP |
Advanced Metering Program | |
ARC |
Asset Retirement Cost | |
ARO |
Asset Retirement Obligation | |
ARP |
Title IV Acid Rain Program | |
ARRA of 2009 |
American Recovery and Reinvestment Act of 2009 | |
ASC |
Accounting Standards Codification | |
BGS |
Basic Generation Service (the supply of electricity by ACE to retail customers in New Jersey who have not elected to purchase electricity from a competitive supplier) | |
Block contracts |
Forward Purchase Energy Block Contracts | |
CAIR |
Clean Air Interstate Rule | |
CAISO |
California ISO | |
CAMR |
Federal Clean Air Mercury Rule | |
CERCLA |
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended | |
CFL |
Compact Fluorescent Light | |
Clean Air Act |
Clean Air Act of 1963, as amended | |
Clean Water Act |
Federal Water Pollution Control Amendments of 1972, as amended | |
Competition Act |
Pennsylvania Electricity Generation Customer Choice and Competition Act of 1996 | |
Conectiv |
Conectiv, LLC, a wholly owned subsidiary of PHI and the parent of DPL and ACE | |
Conectiv Energy |
Conectiv Energy Holdings, Inc. and substantially all of its subsidiaries, which were sold to Calpine in July 2010 | |
Contract EDCs |
Pepco, DPL and BGE, the Maryland utilities required by the MDPSC to enter into a contract for new generation | |
CPI |
Consumer Price Index | |
CPUC |
California Public Utilities Commission | |
CSAPR |
Cross-State Air Pollution Rule | |
CTA |
Consolidated tax adjustment | |
CTC |
Competitive Transition Charge | |
D.C. Circuit Court |
United States Court of Appeals for the District of Columbia Circuit | |
DCPSC |
District of Columbia Public Service Commission | |
DC PLUG |
District of Columbia Power Line Undergrounding | |
Default Electricity Supply |
The supply of electricity by PHIs electric utility subsidiaries at regulated rates to retail customers who do not elect to purchase electricity from a competitive supplier, and which, depending on the jurisdiction, is also known as Standard Offer Service or BGS | |
Default Electricity Supply Revenue |
Revenue primarily from Default Electricity Supply | |
DOE |
United States Department of Energy | |
DOJ |
United States Department of Justice | |
DPSC |
Delaware Public Service Commission | |
DRP |
Direct Stock Purchase and Dividend Reinvestment Plan | |
DSP |
Default Service Provider |
5
GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations |
||
DSP Program |
Default Service Provider Program | |
EDCs |
Electric distribution companies | |
EDF |
Electricite de France SA and its subsidiaries | |
EE&C |
Energy Efficiency and Conservation/Demand Response | |
EGS |
Electric Generation Supplier | |
EGTP |
ExGen Texas Power, LLC | |
EIMA |
Energy Infrastructure Modernization Act (Illinois Senate Bill 1652 and Illinois House Bill 3036) | |
EmPower Maryland |
A Maryland demand-side management program for Pepco and DPL | |
EPA |
United States Environmental Protection Agency | |
ERCOT |
Electric Reliability Council of Texas | |
ERISA |
Employee Retirement Income Security Act of 1974, as amended | |
EROA |
Expected Rate of Return on Assets | |
ESPP |
Employee Stock Purchase Plan | |
FASB |
Financial Accounting Standards Board | |
FERC |
Federal Energy Regulatory Commission | |
FRCC |
Florida Reliability Coordinating Council | |
FTC |
Federal Trade Commission | |
GAAP |
Generally Accepted Accounting Principles in the United States | |
GCR |
Gas Cost Rate | |
GHG |
Greenhouse Gas | |
GRT |
Gross Receipts Tax | |
GSA |
Generation Supply Adjustment | |
GWh |
Gigawatt hour | |
HAP |
Hazardous air pollutants | |
Health Care Reform Acts |
Patient Protection and Affordable Care Act and Health Care and Education Reconciliation Act of 2010 | |
HSR Act |
The Hart-Scott-Rodino Antitrust Improvements Act of 1976 | |
IBEW |
International Brotherhood of Electrical Workers | |
ICC |
Illinois Commerce Commission | |
ICE |
Intercontinental Exchange | |
Illinois Act |
Illinois Electric Service Customer Choice and Rate Relief Law of 1997 | |
Illinois EPA |
Illinois Environmental Protection Agency | |
Illinois Settlement Legislation |
Legislation enacted in 2007 affecting electric utilities in Illinois | |
Integrys |
Integrys Energy Services, Inc. | |
IPA |
Illinois Power Agency | |
IRC |
Internal Revenue Code | |
IRS |
Internal Revenue Service | |
ISO |
Independent System Operator | |
ISO-NE |
ISO New England Inc. | |
ISO-NY |
ISO New York | |
kV |
Kilovolt | |
kW |
Kilowatt | |
kWh |
Kilowatt-hour | |
LIBOR |
London Interbank Offered Rate | |
LILO |
Lease-In, Lease-Out | |
LLRW |
Low-Level Radioactive Waste | |
LTIP |
Long-Term Incentive Plan | |
MAPP |
Mid-Atlantic Power Pathway |
6
GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations |
||
MATS |
U.S. EPA Mercury and Air Toxics Rule | |
MBR |
Market Based Rates Incentive | |
MDE |
Maryland Department of the Environment | |
MDPSC |
Maryland Public Service Commission | |
MGP |
Manufactured Gas Plant | |
MISO |
Midcontinent Independent System Operator, Inc. | |
mmcf |
Million Cubic Feet | |
Moodys |
Moodys Investor Service | |
MOPR |
Minimum Offer Price Rule | |
MRV |
Market-Related Value | |
MW |
Megawatt | |
MWh |
Megawatt hour | |
NAAQS |
National Ambient Air Quality Standards | |
n.m. |
not meaningful | |
NAV |
Net Asset Value | |
NDT |
Nuclear Decommissioning Trust | |
NEIL |
Nuclear Electric Insurance Limited | |
NERC |
North American Electric Reliability Corporation | |
NGS |
Natural Gas Supplier | |
NJBPU |
New Jersey Board of Public Utilities | |
NJDEP |
New Jersey Department of Environmental Protection | |
Non-Regulatory Agreements Units |
Nuclear generating units or portions thereof whose decommissioning-related activities are not subject to contractual elimination under regulatory accounting | |
NOSA |
Nuclear Operating Services Agreement | |
NOV |
Notice of Violation | |
NPDES |
National Pollutant Discharge Elimination System | |
NRC |
Nuclear Regulatory Commission | |
NSPS |
New Source Performance Standards | |
NUGs |
Non-utility generators | |
NWPA |
Nuclear Waste Policy Act of 1982 | |
NYMEX |
New York Mercantile Exchange | |
OCI |
Other Comprehensive Income | |
OIESO |
Ontario Independent Electricity System Operator | |
OPC |
Office of Peoples Counsel | |
OPEB |
Other Postretirement Employee Benefits | |
PA DEP |
Pennsylvania Department of Environmental Protection | |
PAPUC |
Pennsylvania Public Utility Commission | |
PGC |
Purchased Gas Cost Clause | |
PHI Retirement Plan |
PHIs noncontributory retirement plan | |
PJM |
PJM Interconnection, LLC | |
POLR |
Provider of Last Resort | |
POR |
Purchase of Receivables | |
PPA |
Power Purchase Agreement | |
Price-Anderson Act |
Price-Anderson Nuclear Industries Indemnity Act of 1957 | |
Preferred Stock |
Originally issued shares of non-voting, non-convertible and non-transferable Series A preferred stock, par value $0.01 per share | |
PRP |
Potentially Responsible Parties | |
PSEG |
Public Service Enterprise Group Incorporated |
7
GLOSSARY OF TERMS AND ABBREVIATIONS
Other Terms and Abbreviations |
||
PURTA |
Pennsylvania Public Realty Tax Act | |
PV |
Photovoltaic | |
RCRA |
Resource Conservation and Recovery Act of 1976, as amended | |
REC |
Renewable Energy Credit which is issued for each megawatt hour of generation from a qualified renewable energy source | |
Regulatory Agreement Units |
Nuclear generating units or portions thereof whose decommissioning-related activities are subject to contractual elimination under regulatory accounting | |
RES |
Retail Electric Suppliers | |
RFP |
Request for Proposal | |
Rider |
Reconcilable Surcharge Recovery Mechanism | |
RGGI |
Regional Greenhouse Gas Initiative | |
RMC |
Risk Management Committee | |
ROE |
Return on equity | |
RPM |
PJM Reliability Pricing Model | |
RPS |
Renewable Energy Portfolio Standards | |
RSSA |
Reliability Support Services Agreement | |
RTEP |
Regional Transmission Expansion Plan | |
RTO |
Regional Transmission Organization | |
S&P |
Standard & Poors Ratings Services | |
SEC |
United States Securities and Exchange Commission | |
Senate Bill 1 |
Maryland Senate Bill 1 | |
SERC |
SERC Reliability Corporation (formerly Southeast Electric Reliability Council) | |
SERP |
Supplemental Employee Retirement Plan | |
SGIG |
Smart Grid Investment Grant from DOE | |
SGIP |
Smart Grid Initiative Program | |
SILO |
Sale-In, Lease-Out | |
SMPIP |
Smart Meter Procurement and Installation Plan | |
SNF |
Spent Nuclear Fuel | |
SOCAs |
Standard Offer Capacity Agreements required to be entered into by ACE pursuant to a New Jersey law enacted to promote the construction of qualified electric generation facilities in New Jersey | |
SOS |
Standard Offer Service | |
SPP |
Southwest Power Pool | |
Tax Relief Act of 2010 |
Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 | |
Transition Bond Charge |
Revenue ACE receives, and pays to ACE Funding, to fund the principal and interest payments on Transition Bonds and related taxes, expenses and fees | |
Transition Bonds |
Transition Bonds issued by ACE Funding | |
Upstream |
Natural gas exploration and production activities | |
VIE |
Variable Interest Entity | |
WECC |
Western Electric Coordinating Council |
8
This combined Form 10-Q is being filed separately by Exelon Corporation, Exelon Generation Company, LLC, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company, Pepco Holdings LLC, Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company (Registrants). Information contained herein relating to any individual Registrant is filed by such Registrant on its own behalf. No Registrant makes any representation as to information relating to any other Registrant.
This Report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by the Registrants include those factors discussed herein, as well as the items discussed in (1) Exelons 2015 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Managements Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 23; (2) PHIs 2015 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Managements Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 16; (3) this Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors, (b) Part 1, Financial Information, ITEM 2. Managements Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 18; and (4) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this Report. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this Report.
WHERE TO FIND MORE INFORMATION
The public may read and copy any reports or other information that the Registrants file with the SEC at the SECs public reference room at 100 F Street, N.E., Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. These documents are also available to the public from commercial document retrieval services, the website maintained by the SEC at www.sec.gov and the Registrants websites at www.exeloncorp.com. Information contained on the Registrants websites shall not be deemed incorporated into, or to be a part of, this Report.
9
10
EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In millions, except per share data) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating revenues |
||||||||||||||||
Competitive businesses revenues |
$ | 4,535 | $ | 4,564 | $ | 12,243 | $ | 14,278 | ||||||||
Rate-regulated utility revenues |
4,467 | 2,837 | 11,243 | 8,468 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating revenues |
9,002 | 7,401 | 23,486 | 22,746 | ||||||||||||
Operating expenses |
||||||||||||||||
Competitive businesses purchased power and fuel |
2,584 | 2,515 | 6,599 | 7,789 | ||||||||||||
Rate-regulated utility purchased power and fuel |
1,170 | 776 | 2,863 | 2,421 | ||||||||||||
Operating and maintenance |
2,338 | 1,996 | 7,677 | 6,119 | ||||||||||||
Depreciation and amortization |
1,195 | 606 | 2,821 | 1,818 | ||||||||||||
Taxes other than income |
449 | 310 | 1,168 | 908 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
7,736 | 6,203 | 21,128 | 19,055 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gain on sales of assets |
1 | 2 | 41 | 10 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
1,267 | 1,200 | 2,399 | 3,701 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other income and (deductions) |
||||||||||||||||
Interest expense, net |
(506 | ) | (243 | ) | (1,148 | ) | (724 | ) | ||||||||
Interest expense to affiliates |
(10 | ) | (10 | ) | (31 | ) | (31 | ) | ||||||||
Other, net |
120 | (244 | ) | 377 | (179 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income and (deductions) |
(396 | ) | (497 | ) | (802 | ) | (934 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
871 | 703 | 1,597 | 2,767 | ||||||||||||
Income taxes |
340 | 115 | 625 | 805 | ||||||||||||
Equity in losses of unconsolidated affiliates |
(5 | ) | (1 | ) | (16 | ) | (3 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
526 | 587 | 956 | 1,959 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) attributable to noncontrolling interests and preference stock dividends |
36 | (42 | ) | 26 | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to common shareholders |
$ | 490 | $ | 629 | $ | 930 | $ | 1,959 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income, net of income taxes |
||||||||||||||||
Net income |
$ | 526 | $ | 587 | $ | 956 | $ | 1,959 | ||||||||
Other comprehensive income (loss), net of income taxes |
||||||||||||||||
Pension and non-pension postretirement benefit plans: |
||||||||||||||||
Prior service benefit reclassified to periodic benefit cost |
(12 | ) | (11 | ) | (35 | ) | (35 | ) | ||||||||
Actuarial loss reclassified to periodic benefit cost |
47 | 55 | 140 | 165 | ||||||||||||
Pension and non-pension postretirement benefit plan valuation adjustment |
| | (3 | ) | (29 | ) | ||||||||||
Unrealized gain (loss) on cash flow hedges |
3 | (3 | ) | (4 | ) | 4 | ||||||||||
Unrealized loss on equity investments |
(4 | ) | | (10 | ) | | ||||||||||
Unrealized gain (loss) on foreign currency translation |
2 | (8 | ) | 8 | (17 | ) | ||||||||||
Unrealized loss on marketable securities |
| (1 | ) | | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income |
36 | 32 | 96 | 88 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
562 | 619 | 1,052 | 2,047 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) attributable to noncontrolling interests and preference stock dividends |
31 | (42 | ) | 21 | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income attributable to common shareholders |
$ | 531 | $ | 661 | $ | 1,031 | $ | 2,047 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Average shares of common stock outstanding: |
||||||||||||||||
Basic |
925 | 913 | 924 | 879 | ||||||||||||
Diluted |
927 | 915 | 926 | 883 | ||||||||||||
Earnings per average common share: |
||||||||||||||||
Basic |
$ | 0.53 | $ | 0.69 | $ | 1.01 | $ | 2.23 | ||||||||
Diluted |
$ | 0.53 | $ | 0.69 | $ | 1.00 | $ | 2.22 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Dividends declared per common share |
$ | 0.32 | $ | 0.31 | $ | 0.95 | $ | 0.93 | ||||||||
|
|
|
|
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
11
EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30, |
||||||||
(In millions) | 2016 | 2015 | ||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 956 | $ | 1,959 | ||||
Adjustments to reconcile net income to net cash flows provided by operating activities: |
||||||||
Depreciation, amortization, depletion and accretion, including nuclear fuel and energy contract amortization |
4,009 | 2,930 | ||||||
Impairment of long-lived assets and losses on regulatory assets |
274 | 25 | ||||||
Gain on sales of assets |
(41 | ) | (10 | ) | ||||
Deferred income taxes and amortization of investment tax credits |
623 | 241 | ||||||
Net fair value changes related to derivatives |
100 | (363 | ) | |||||
Net realized and unrealized (gains) losses on nuclear decommissioning trust fund investments |
(243 | ) | 221 | |||||
Other non-cash operating activities |
1,224 | 856 | ||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
(296 | ) | 175 | |||||
Inventories |
21 | 65 | ||||||
Accounts payable and accrued expenses |
296 | (115 | ) | |||||
Option premiums (paid) received, net |
(24 | ) | 27 | |||||
Collateral received, net |
757 | 115 | ||||||
Income taxes |
527 | 300 | ||||||
Pension and non-pension postretirement benefit contributions |
(283 | ) | (430 | ) | ||||
Other assets and liabilities |
(537 | ) | (322 | ) | ||||
|
|
|
|
|||||
Net cash flows provided by operating activities |
7,363 | 5,674 | ||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Capital expenditures |
(6,368 | ) | (5,443 | ) | ||||
Proceeds from nuclear decommissioning trust fund sales |
7,914 | 4,551 | ||||||
Investment in nuclear decommissioning trust funds |
(8,093 | ) | (4,737 | ) | ||||
Acquisition of businesses, net of cash acquired |
(6,896 | ) | (28 | ) | ||||
Proceeds from sales of long-lived assets |
49 | 145 | ||||||
Proceeds from termination of direct financing lease investment |
360 | | ||||||
Change in restricted cash |
(75 | ) | (70 | ) | ||||
Other investing activities |
(110 | ) | (107 | ) | ||||
|
|
|
|
|||||
Net cash flows used in investing activities |
(13,219 | ) | (5,689 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Changes in short-term borrowings |
(1,014 | ) | 230 | |||||
Proceeds from short-term borrowings with maturities greater than 90 days |
195 | | ||||||
Repayments on short-term borrowings with maturities greater than 90 days |
(452 | ) | | |||||
Issuance of long-term debt |
4,488 | 5,909 | ||||||
Retirement of long-term debt |
(944 | ) | (1,745 | ) | ||||
Restricted proceeds from issuance of long-term debt |
(30 | ) | | |||||
Issuance of common stock |
| 1,868 | ||||||
Redemption of preference stock |
(190 | ) | | |||||
Dividends paid on common stock |
(873 | ) | (819 | ) | ||||
Proceeds from employee stock plans |
36 | 24 | ||||||
Other financing activities |
35 | (65 | ) | |||||
|
|
|
|
|||||
Net cash flows provided by financing activities |
1,251 | 5,402 | ||||||
|
|
|
|
|||||
(Decrease) Increase in cash and cash equivalents |
(4,605 | ) | 5,387 | |||||
Cash and cash equivalents at beginning of period |
6,502 | 1,878 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 1,897 | $ | 7,265 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
12
EXELON CORPORATION AND SUBSIDIARY COMPANIES
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 1,897 | $ | 6,502 | ||||
Restricted cash and cash equivalents |
321 | 205 | ||||||
Accounts receivable, net |
||||||||
Customer |
4,061 | 3,187 | ||||||
Other |
1,013 | 912 | ||||||
Mark-to-market derivative assets |
754 | 1,365 | ||||||
Unamortized energy contract assets |
126 | 86 | ||||||
Inventories, net |
||||||||
Fossil fuel and emission allowances |
374 | 462 | ||||||
Materials and supplies |
1,188 | 1,104 | ||||||
Regulatory assets |
1,410 | 759 | ||||||
Other |
1,064 | 752 | ||||||
|
|
|
|
|||||
Total current assets |
12,208 | 15,334 | ||||||
|
|
|
|
|||||
Property, plant and equipment, net |
71,214 | 57,439 | ||||||
Deferred debits and other assets |
||||||||
Regulatory assets |
10,022 | 6,065 | ||||||
Nuclear decommissioning trust funds |
11,076 | 10,342 | ||||||
Investments |
592 | 639 | ||||||
Goodwill |
6,672 | 2,672 | ||||||
Mark-to-market derivative assets |
669 | 758 | ||||||
Unamortized energy contract assets |
473 | 484 | ||||||
Pledged assets for Zion Station decommissioning |
135 | 206 | ||||||
Other |
1,474 | 1,445 | ||||||
|
|
|
|
|||||
Total deferred debits and other assets |
31,113 | 22,611 | ||||||
|
|
|
|
|||||
Total assets(a) |
$ | 114,535 | $ | 95,384 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
13
EXELON CORPORATION AND SUBSIDIARY COMPANIES
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
||||||
(Unaudited) | ||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
Current liabilities |
||||||||
Short-term borrowings |
$ | 567 | $ | 533 | ||||
Long-term debt due within one year |
2,512 | 1,500 | ||||||
Accounts payable |
3,044 | 2,883 | ||||||
Accrued expenses |
3,236 | 2,376 | ||||||
Payables to affiliates |
8 | 8 | ||||||
Regulatory liabilities |
548 | 369 | ||||||
Mark-to-market derivative liabilities |
222 | 205 | ||||||
Unamortized energy contract liabilities |
452 | 100 | ||||||
Renewable energy credit obligation |
356 | 302 | ||||||
PHI merger related obligation |
145 | | ||||||
Other |
1,068 | 842 | ||||||
|
|
|
|
|||||
Total current liabilities |
12,158 | 9,118 | ||||||
|
|
|
|
|||||
Long-term debt |
32,330 | 23,645 | ||||||
Long-term debt to financing trusts |
642 | 641 | ||||||
Deferred credits and other liabilities |
||||||||
Deferred income taxes and unamortized investment tax credits |
18,115 | 13,776 | ||||||
Asset retirement obligations |
9,348 | 8,585 | ||||||
Pension obligations |
3,765 | 3,385 | ||||||
Non-pension postretirement benefit obligations |
1,921 | 1,618 | ||||||
Spent nuclear fuel obligation |
1,023 | 1,021 | ||||||
Regulatory liabilities |
4,437 | 4,201 | ||||||
Mark-to-market derivative liabilities |
422 | 374 | ||||||
Unamortized energy contract liabilities |
927 | 117 | ||||||
Payable for Zion Station decommissioning |
33 | 90 | ||||||
Other |
1,928 | 1,491 | ||||||
|
|
|
|
|||||
Total deferred credits and other liabilities |
41,919 | 34,658 | ||||||
|
|
|
|
|||||
Total liabilities(a) |
87,049 | 68,062 | ||||||
|
|
|
|
|||||
Commitments and contingencies |
||||||||
Contingently redeemable noncontrolling interests |
26 | 28 | ||||||
Shareholders equity |
||||||||
Common stock (No par value, 2000 shares authorized, 923 shares and 920 shares outstanding at September 30, 2016 and December 31, 2015, respectively) |
18,756 | 18,676 | ||||||
Treasury stock, at cost (35 shares at September 30, 2016 and December 31, 2015, respectively) |
(2,327 | ) | (2,327 | ) | ||||
Retained earnings |
12,121 | 12,068 | ||||||
Accumulated other comprehensive loss, net |
(2,523 | ) | (2,624 | ) | ||||
|
|
|
|
|||||
Total shareholders equity |
26,027 | 25,793 | ||||||
BGE preference stock not subject to mandatory redemption |
| 193 | ||||||
Noncontrolling interests |
1,433 | 1,308 | ||||||
|
|
|
|
|||||
Total equity |
27,460 | 27,294 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity |
$ | 114,535 | $ | 95,384 | ||||
|
|
|
|
(a) | Exelons consolidated assets include $8,514 million and $8,268 million at September 30, 2016 and December 31, 2015, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Exelons consolidated liabilities include $3,438 million and $3,264 million at September 30, 2016 and December 31, 2015, respectively, of certain VIEs for which the VIE creditors do not have recourse to Exelon. See Note 3 Variable Interest Entities. |
See the Combined Notes to Consolidated Financial Statements
14
EXELON CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
(Unaudited)
(In millions, shares in thousands) |
Issued Shares |
Common Stock |
Treasury Stock |
Retained Earnings |
Accumulated Other Comprehensive Loss, net |
Noncontrolling Interests |
Preference Stock |
Total Shareholders Equity |
||||||||||||||||||||||||
Balance, December 31, 2015 |
954,668 | $ | 18,676 | $ | (2,327 | ) | $ | 12,068 | $ | (2,624 | ) | $ | 1,308 | $ | 193 | $ | 27,294 | |||||||||||||||
Net income |
| | | 930 | | 18 | 8 | 956 | ||||||||||||||||||||||||
Long-term incentive plan activity |
2,422 | 61 | | | | | | 61 | ||||||||||||||||||||||||
Employee stock purchase plan issuances |
924 | 36 | | | | | | 36 | ||||||||||||||||||||||||
Tax benefit on stock compensation |
| (17 | ) | | | | | | (17 | ) | ||||||||||||||||||||||
Changes in equity of noncontrolling interests |
| | | | | 5 | | 5 | ||||||||||||||||||||||||
Adjustment of contingently redeemable noncontrolling interest due to release of contingency |
| | | | | 107 | | 107 | ||||||||||||||||||||||||
Common stock dividends |
| | | (877 | ) | | | | (877 | ) | ||||||||||||||||||||||
Redemption of preference stock |
| | | | | | (193 | ) | (193 | ) | ||||||||||||||||||||||
Preference stock dividends |
| | | | | | (8 | ) | (8 | ) | ||||||||||||||||||||||
Other comprehensive income (loss), net of income taxes |
| | | | 101 | (5 | ) | | 96 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, September 30, 2016 |
958,014 | $ | 18,756 | $ | (2,327 | ) | $ | 12,121 | $ | (2,523 | ) | $ | 1,433 | $ | | $ | 27,460 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
15
EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating revenues |
||||||||||||||||
Operating revenues |
$ | 4,533 | $ | 4,562 | $ | 12,234 | $ | 14,270 | ||||||||
Operating revenues from affiliates |
502 | 206 | 1,129 | 571 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating revenues |
5,035 | 4,768 | 13,363 | 14,841 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating expenses |
||||||||||||||||
Purchased power and fuel |
2,584 | 2,516 | 6,599 | 7,789 | ||||||||||||
Purchased power and fuel from affiliates |
5 | 3 | 10 | 11 | ||||||||||||
Operating and maintenance |
1,189 | 1,088 | 3,855 | 3,399 | ||||||||||||
Operating and maintenance from affiliates |
147 | 153 | 478 | 461 | ||||||||||||
Depreciation and amortization |
632 | 264 | 1,329 | 774 | ||||||||||||
Taxes other than income |
136 | 123 | 380 | 369 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
4,693 | 4,147 | 12,651 | 12,803 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gain on sales of assets |
| 1 | 31 | 7 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
342 | 622 | 743 | 2,045 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other income and (deductions) |
||||||||||||||||
Interest expense, net |
(67 | ) | (56 | ) | (243 | ) | (236 | ) | ||||||||
Interest expense to affiliates |
(10 | ) | (12 | ) | (30 | ) | (33 | ) | ||||||||
Other, net |
185 | (257 | ) | 395 | (193 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income and (deductions) |
108 | (325 | ) | 122 | (462 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
450 | 297 | 865 | 1,583 | ||||||||||||
Income taxes |
173 | (36 | ) | 293 | 371 | |||||||||||
Equity in losses of unconsolidated affiliates |
(6 | ) | (1 | ) | (16 | ) | (4 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
271 | 332 | 556 | 1,208 | ||||||||||||
Net income (loss) attributable to noncontrolling interests |
35 | (45 | ) | 18 | (10 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to membership interest |
$ | 236 | $ | 377 | $ | 538 | $ | 1,218 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income, net of income taxes |
||||||||||||||||
Net income |
$ | 271 | $ | 332 | $ | 556 | $ | 1,208 | ||||||||
Other comprehensive income (loss), net of income taxes |
||||||||||||||||
Unrealized gain (loss) on cash flow hedges |
1 | (3 | ) | (3 | ) | (7 | ) | |||||||||
Unrealized loss on equity investments |
| | (4 | ) | | |||||||||||
Unrealized gain (loss) on foreign currency translation |
2 | (8 | ) | 8 | (17 | ) | ||||||||||
Unrealized gain (loss) on marketable securities |
1 | (2 | ) | 1 | | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) |
4 | (13 | ) | 2 | (24 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
275 | 319 | 558 | 1,184 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income (loss) attributable to noncontrolling interests |
30 | (45 | ) | 13 | (10 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income attributable to membership interest |
$ | 245 | $ | 364 | $ | 545 | $ | 1,194 | ||||||||
|
|
|
|
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
16
EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30, |
||||||||
(In millions) | 2016 | 2015 | ||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 556 | $ | 1,208 | ||||
Adjustments to reconcile net income to net cash flows provided by operating activities: |
||||||||
Depreciation, amortization, depletion and accretion, including nuclear fuel and energy contract amortization |
2,516 | 1,887 | ||||||
Impairment of long-lived assets |
209 | 1 | ||||||
Gain on sales of assets |
(31 | ) | (7 | ) | ||||
Deferred income taxes and amortization of investment tax credits |
(133 | ) | 21 | |||||
Net fair value changes related to derivatives |
112 | (252 | ) | |||||
Net realized and unrealized (gains) losses on nuclear decommissioning trust fund investments |
(243 | ) | 221 | |||||
Other non-cash operating activities |
129 | 227 | ||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
26 | 252 | ||||||
Receivables from and payables to affiliates, net |
(56 | ) | 16 | |||||
Inventories |
18 | 69 | ||||||
Accounts payable and accrued expenses |
9 | (146 | ) | |||||
Option premiums (paid) received, net |
(24 | ) | 27 | |||||
Collateral received, net |
759 | 186 | ||||||
Income taxes |
202 | (70 | ) | |||||
Pension and non-pension postretirement benefit contributions |
(122 | ) | (189 | ) | ||||
Other assets and liabilities |
(204 | ) | (245 | ) | ||||
|
|
|
|
|||||
Net cash flows provided by operating activities |
3,723 | 3,206 | ||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Capital expenditures |
(2,651 | ) | (2,774 | ) | ||||
Proceeds from nuclear decommissioning trust fund sales |
7,914 | 4,551 | ||||||
Investment in nuclear decommissioning trust funds |
(8,093 | ) | (4,737 | ) | ||||
Acquisition of businesses |
(255 | ) | (28 | ) | ||||
Proceeds from sale of long-lived assets |
30 | 144 | ||||||
Change in restricted cash |
(39 | ) | (84 | ) | ||||
Other investing activities |
(184 | ) | (92 | ) | ||||
|
|
|
|
|||||
Net cash flows used in investing activities |
(3,278 | ) | (3,020 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Proceeds from short-term borrowings with maturities greater than 90 days |
195 | | ||||||
Repayments of short-term borrowings with maturities greater than 90 days |
(152 | ) | | |||||
Issuance of long-term debt |
338 | 1,307 | ||||||
Retirement of long-term debt |
(164 | ) | (64 | ) | ||||
Retirement of long-term debt to affiliate |
| (550 | ) | |||||
Changes in Exelon intercompany money pool |
(785 | ) | 1,205 | |||||
Distribution to member |
(167 | ) | (2,368 | ) | ||||
Contribution from member |
142 | 55 | ||||||
Other financing activities |
92 | (6 | ) | |||||
|
|
|
|
|||||
Net cash flows used in financing activities |
(501 | ) | (421 | ) | ||||
|
|
|
|
|||||
Decrease in cash and cash equivalents |
(56 | ) | (235 | ) | ||||
Cash and cash equivalents at beginning of period |
431 | 780 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 375 | $ | 545 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
17
EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 375 | $ | 431 | ||||
Restricted cash and cash equivalents |
162 | 123 | ||||||
Accounts receivable, net |
||||||||
Customer |
2,318 | 2,095 | ||||||
Other |
301 | 360 | ||||||
Mark-to-market derivative assets |
754 | 1,365 | ||||||
Receivables from affiliates |
170 | 83 | ||||||
Unamortized energy contract assets |
126 | 86 | ||||||
Inventories, net |
||||||||
Fossil fuel and emission allowances |
292 | 384 | ||||||
Materials and supplies |
849 | 880 | ||||||
Other |
788 | 535 | ||||||
|
|
|
|
|||||
Total current assets |
6,135 | 6,342 | ||||||
|
|
|
|
|||||
Property, plant and equipment, net |
26,374 | 25,843 | ||||||
Deferred debits and other assets |
||||||||
Nuclear decommissioning trust funds |
11,076 | 10,342 | ||||||
Investments |
381 | 210 | ||||||
Goodwill |
47 | 47 | ||||||
Mark-to-market derivative assets |
630 | 733 | ||||||
Prepaid pension asset |
1,621 | 1,689 | ||||||
Pledged assets for Zion Station decommissioning |
135 | 206 | ||||||
Unamortized energy contract assets |
472 | 484 | ||||||
Deferred income taxes |
5 | 6 | ||||||
Other |
692 | 627 | ||||||
|
|
|
|
|||||
Total deferred debits and other assets |
15,059 | 14,344 | ||||||
|
|
|
|
|||||
Total assets(a) |
$ | 47,568 | $ | 46,529 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
18
EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
||||||
(Unaudited) | ||||||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities |
||||||||
Short-term borrowings |
$ | 40 | $ | 29 | ||||
Long-term debt due within one year |
254 | 90 | ||||||
Accounts payable |
1,465 | 1,583 | ||||||
Accrued expenses |
942 | 935 | ||||||
Payables to affiliates |
118 | 104 | ||||||
Borrowings from Exelon intercompany money pool |
461 | 1,252 | ||||||
Mark-to-market derivative liabilities |
203 | 182 | ||||||
Unamortized energy contract liabilities |
76 | 100 | ||||||
Renewable energy credit obligation |
356 | 302 | ||||||
Other |
392 | 356 | ||||||
|
|
|
|
|||||
Total current liabilities |
4,307 | 4,933 | ||||||
|
|
|
|
|||||
Long-term debt |
8,077 | 7,936 | ||||||
Long-term debt to affiliate |
924 | 933 | ||||||
Deferred credits and other liabilities |
||||||||
Deferred income taxes and unamortized investment tax credits |
5,684 | 5,845 | ||||||
Asset retirement obligations |
9,160 | 8,431 | ||||||
Non-pension postretirement benefit obligations |
932 | 924 | ||||||
Spent nuclear fuel obligation |
1,023 | 1,021 | ||||||
Payables to affiliates |
2,704 | 2,577 | ||||||
Mark-to-market derivative liabilities |
197 | 150 | ||||||
Unamortized energy contract liabilities |
97 | 117 | ||||||
Payable for Zion Station decommissioning |
33 | 90 | ||||||
Other |
691 | 602 | ||||||
|
|
|
|
|||||
Total deferred credits and other liabilities |
20,521 | 19,757 | ||||||
|
|
|
|
|||||
Total liabilities(a) |
33,829 | 33,559 | ||||||
|
|
|
|
|||||
Commitments and contingencies |
||||||||
Contingently redeemable noncontrolling interests |
26 | 28 | ||||||
Equity |
||||||||
Members equity |
||||||||
Membership interest |
9,265 | 8,997 | ||||||
Undistributed earnings |
3,072 | 2,701 | ||||||
Accumulated other comprehensive loss, net |
(56 | ) | (63 | ) | ||||
|
|
|
|
|||||
Total members equity |
12,281 | 11,635 | ||||||
Noncontrolling interests |
1,432 | 1,307 | ||||||
|
|
|
|
|||||
Total equity |
13,713 | 12,942 | ||||||
|
|
|
|
|||||
Total liabilities and equity |
$ | 47,568 | $ | 46,529 | ||||
|
|
|
|
(a) | Generations consolidated assets include $8,415 million and $8,235 million at September 30, 2016 and December 31, 2015, respectively, of certain VIEs that can only be used to settle the liabilities of the VIE. Generations consolidated liabilities include $3,196 million and $3,135 million at September 30, 2016 and December 31, 2015, respectively, of certain VIEs for which the VIE creditors do not have recourse to Generation. See Note 3 Variable Interest Entities. |
See the Combined Notes to Consolidated Financial Statements
19
EXELON GENERATION COMPANY, LLC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(Unaudited)
Members Equity | ||||||||||||||||||||
(In millions) | Membership Interest |
Undistributed Earnings |
Accumulated Other Comprehensive Loss, net |
Noncontrolling Interests |
Total Equity | |||||||||||||||
Balance, December 31, 2015 |
$ | 8,997 | $ | 2,701 | $ | (63 | ) | $ | 1,307 | $ | 12,942 | |||||||||
Net income |
| 538 | | 18 | 556 | |||||||||||||||
Changes in equity of noncontrolling interests |
| | | 5 | 5 | |||||||||||||||
Adjustment of contingently redeemable noncontrolling interests due to release of contingency |
| | | 107 | 107 | |||||||||||||||
Allocation of tax benefit from member |
98 | | | | 98 | |||||||||||||||
Contribution from member |
170 | | | | 170 | |||||||||||||||
Distribution to member |
| (167 | ) | | | (167 | ) | |||||||||||||
Other comprehensive income (loss), net of income taxes |
| | 7 | (5 | ) | 2 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, September 30, 2016 |
$ | 9,265 | $ | 3,072 | $ | (56 | ) | $ | 1,432 | $ | 13,713 | |||||||||
|
|
|
|
|
|
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
20
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating revenues |
||||||||||||||||
Electric operating revenues |
$ | 1,493 | $ | 1,375 | $ | 4,019 | $ | 3,706 | ||||||||
Operating revenues from affiliates |
4 | 1 | 12 | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating revenues |
1,497 | 1,376 | 4,031 | 3,709 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating expenses |
||||||||||||||||
Purchased power |
435 | 388 | 1,104 | 974 | ||||||||||||
Purchased power from affiliate |
19 | 2 | 37 | 17 | ||||||||||||
Operating and maintenance |
327 | 353 | 950 | 1,023 | ||||||||||||
Operating and maintenance from affiliate |
50 | 51 | 163 | 143 | ||||||||||||
Depreciation and amortization |
196 | 176 | 574 | 528 | ||||||||||||
Taxes other than income |
82 | 79 | 222 | 225 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
1,109 | 1,049 | 3,050 | 2,910 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gain on sale of assets |
1 | | 6 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
389 | 327 | 987 | 799 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other income and (deductions) |
||||||||||||||||
Interest expense, net |
(194 | ) | (80 | ) | (364 | ) | (238 | ) | ||||||||
Interest expense to affiliates |
(3 | ) | (3 | ) | (10 | ) | (10 | ) | ||||||||
Other, net |
(80 | ) | 4 | (72 | ) | 14 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income and (deductions) |
(277 | ) | (79 | ) | (446 | ) | (234 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
112 | 248 | 541 | 565 | ||||||||||||
Income taxes |
75 | 99 | 244 | 226 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income |
$ | 37 | $ | 149 | $ | 297 | $ | 339 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
$ | 37 | $ | 149 | $ | 297 | $ | 339 | ||||||||
|
|
|
|
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
21
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30, |
||||||||
(In millions) | 2016 | 2015 | ||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 297 | $ | 339 | ||||
Adjustments to reconcile net income to net cash flows provided by operating activities: |
||||||||
Depreciation, amortization and accretion |
574 | 528 | ||||||
Deferred income taxes and amortization of investment tax credits |
398 | 107 | ||||||
Other non-cash operating activities |
122 | 312 | ||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
(55 | ) | (114 | ) | ||||
Receivables from and payables to affiliates, net |
(9 | ) | (23 | ) | ||||
Inventories |
4 | (23 | ) | |||||
Accounts payable and accrued expenses |
145 | (18 | ) | |||||
Collateral posted, net |
(2 | ) | (43 | ) | ||||
Income taxes |
206 | 389 | ||||||
Pension and non-pension postretirement benefit contributions |
(35 | ) | (142 | ) | ||||
Other assets and liabilities |
104 | 34 | ||||||
|
|
|
|
|||||
Net cash flows provided by operating activities |
1,749 | 1,346 | ||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Capital expenditures |
(1,950 | ) | (1,670 | ) | ||||
Change in restricted cash |
| 2 | ||||||
Other investing activities |
31 | 22 | ||||||
|
|
|
|
|||||
Net cash flows used in investing activities |
(1,919 | ) | (1,646 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Changes in short-term borrowings |
(284 | ) | 300 | |||||
Issuance of long-term debt |
1,200 | 400 | ||||||
Retirement of long-term debt |
(665 | ) | (260 | ) | ||||
Contributions from parent |
188 | 75 | ||||||
Dividends paid on common stock |
(275 | ) | (226 | ) | ||||
Other financing activities |
(17 | ) | (4 | ) | ||||
|
|
|
|
|||||
Net cash flows provided by financing activities |
147 | 285 | ||||||
|
|
|
|
|||||
Decrease in cash and cash equivalents |
(23 | ) | (15 | ) | ||||
Cash and cash equivalents at beginning of period |
67 | 66 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 44 | $ | 51 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
22
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 44 | $ | 67 | ||||
Restricted cash |
2 | 2 | ||||||
Accounts receivable, net |
||||||||
Customer |
546 | 533 | ||||||
Other |
259 | 272 | ||||||
Receivables from affiliates |
359 | 199 | ||||||
Inventories, net |
156 | 164 | ||||||
Regulatory assets |
205 | 218 | ||||||
Other |
63 | 63 | ||||||
|
|
|
|
|||||
Total current assets |
1,634 | 1,518 | ||||||
|
|
|
|
|||||
Property, plant and equipment, net |
18,811 | 17,502 | ||||||
Deferred debits and other assets |
||||||||
Regulatory assets |
987 | 895 | ||||||
Investments |
6 | 6 | ||||||
Goodwill |
2,625 | 2,625 | ||||||
Receivables from affiliates |
2,238 | 2,172 | ||||||
Prepaid pension asset |
1,387 | 1,490 | ||||||
Other |
332 | 324 | ||||||
|
|
|
|
|||||
Total deferred debits and other assets |
7,575 | 7,512 | ||||||
|
|
|
|
|||||
Total assets |
$ | 28,020 | $ | 26,532 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
23
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
||||||
(Unaudited) | ||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
Current liabilities |
||||||||
Short-term borrowings |
$ | 10 | $ | 294 | ||||
Long-term debt due within one year |
425 | 665 | ||||||
Accounts payable |
625 | 660 | ||||||
Accrued expenses |
1,045 | 706 | ||||||
Payables to affiliates |
57 | 62 | ||||||
Customer deposits |
126 | 131 | ||||||
Regulatory liabilities |
204 | 155 | ||||||
Mark-to-market derivative liability |
19 | 23 | ||||||
Other |
78 | 70 | ||||||
|
|
|
|
|||||
Total current liabilities |
2,589 | 2,766 | ||||||
|
|
|
|
|||||
Long-term debt |
6,606 | 5,844 | ||||||
Long-term debt to financing trust |
205 | 205 | ||||||
Deferred credits and other liabilities |
||||||||
Deferred income taxes and unamortized investment tax credits |
5,320 | 4,914 | ||||||
Asset retirement obligations |
118 | 111 | ||||||
Non-pension postretirement benefits obligations |
244 | 259 | ||||||
Regulatory liabilities |
3,577 | 3,459 | ||||||
Mark-to-market derivative liability |
225 | 224 | ||||||
Other |
526 | 507 | ||||||
|
|
|
|
|||||
Total deferred credits and other liabilities |
10,010 | 9,474 | ||||||
|
|
|
|
|||||
Total liabilities |
19,410 | 18,289 | ||||||
|
|
|
|
|||||
Commitments and contingencies |
||||||||
Shareholders equity |
||||||||
Common stock |
1,588 | 1,588 | ||||||
Other paid-in capital |
6,022 | 5,677 | ||||||
Retained earnings |
1,000 | 978 | ||||||
|
|
|
|
|||||
Total shareholders equity |
8,610 | 8,243 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity |
$ | 28,020 | $ | 26,532 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
24
COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
(Unaudited)
(In millions) | Common Stock |
Other Paid-In Capital |
Retained
Deficit Unappropriated |
Retained Earnings Appropriated |
Total Shareholders Equity |
|||||||||||||||
Balance, December 31, 2015 |
$ | 1,588 | $ | 5,677 | $ | (1,639 | ) | $ | 2,617 | $ | 8,243 | |||||||||
Net income |
| | 297 | | 297 | |||||||||||||||
Appropriation of retained earnings for future dividends |
| | (297 | ) | 297 | | ||||||||||||||
Common stock dividends |
| | | (275 | ) | (275 | ) | |||||||||||||
Contribution from parent |
| 188 | | | 188 | |||||||||||||||
Parent tax matter indemnification |
| 157 | | | 157 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, September 30, 2016 |
$ | 1,588 | $ | 6,022 | $ | (1,639 | ) | $ | 2,639 | $ | 8,610 | |||||||||
|
|
|
|
|
|
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
25
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
(In millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating revenues |
||||||||||||||||
Electric operating revenues |
$ | 738 | $ | 691 | $ | 1,966 | $ | 1,950 | ||||||||
Natural gas operating revenues |
48 | 48 | 322 | 435 | ||||||||||||
Operating revenues from affiliates |
2 | 1 | 5 | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating revenues |
788 | 740 | 2,293 | 2,386 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating expenses |
||||||||||||||||
Purchased power |
171 | 207 | 466 | 584 | ||||||||||||
Purchased fuel |
10 | 10 | 110 | 198 | ||||||||||||
Purchased power from affiliate |
91 | 61 | 233 | 171 | ||||||||||||
Operating and maintenance |
168 | 166 | 501 | 529 | ||||||||||||
Operating and maintenance from affiliates |
31 | 30 | 103 | 80 | ||||||||||||
Depreciation and amortization |
67 | 68 | 201 | 198 | ||||||||||||
Taxes other than income |
46 | 44 | 126 | 125 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
584 | 586 | 1,740 | 1,885 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Gain on sales of assets |
| | | 1 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating income |
204 | 154 | 553 | 502 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other income and (deductions) |
||||||||||||||||
Interest expense, net |
(27 | ) | (25 | ) | (83 | ) | (75 | ) | ||||||||
Interest expense to affiliates |
(3 | ) | (3 | ) | (9 | ) | (9 | ) | ||||||||
Other, net |
2 | 1 | 6 | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total other income and (deductions) |
(28 | ) | (27 | ) | (86 | ) | (81 | ) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Income before income taxes |
176 | 127 | 467 | 421 | ||||||||||||
Income taxes |
54 | 37 | 121 | 122 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to common shareholder |
$ | 122 | $ | 90 | $ | 346 | $ | 299 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive income |
$ | 122 | $ | 90 | $ | 346 | $ | 299 | ||||||||
|
|
|
|
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
26
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30, |
||||||||
(In millions) | 2016 | 2015 | ||||||
Cash flows from operating activities |
||||||||
Net income |
$ | 346 | $ | 299 | ||||
Adjustments to reconcile net income to net cash flows provided by operating activities: |
||||||||
Depreciation, amortization and accretion |
201 | 198 | ||||||
Deferred income taxes and amortization of investment tax credits |
69 | 11 | ||||||
Other non-cash operating activities |
49 | 69 | ||||||
Changes in assets and liabilities: |
||||||||
Accounts receivable |
(50 | ) | (15 | ) | ||||
Receivables from and payables to affiliates, net |
9 | | ||||||
Inventories |
5 | 8 | ||||||
Accounts payable and accrued expenses |
(12 | ) | (19 | ) | ||||
Income taxes |
43 | 69 | ||||||
Pension and non-pension postretirement benefit contributions |
(29 | ) | (37 | ) | ||||
Other assets and liabilities |
(49 | ) | (16 | ) | ||||
|
|
|
|
|||||
Net cash flows provided by operating activities |
582 | 567 | ||||||
|
|
|
|
|||||
Cash flows from investing activities |
||||||||
Capital expenditures |
(448 | ) | (435 | ) | ||||
Change in restricted cash |
| (1 | ) | |||||
Other investing activities |
10 | 11 | ||||||
|
|
|
|
|||||
Net cash flows used in investing activities |
(438 | ) | (425 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities |
||||||||
Issuance of long-term debt |
300 | | ||||||
Restricted proceeds from issuance of long-term debt |
(30 | ) | | |||||
Changes in Exelon intercompany money pool |
| 55 | ||||||
Contributions from parent |
18 | 16 | ||||||
Dividends paid on common stock |
(208 | ) | (209 | ) | ||||
Other financing activities |
(3 | ) | (2 | ) | ||||
|
|
|
|
|||||
Net cash flows provided by (used in) financing activities |
77 | (140 | ) | |||||
|
|
|
|
|||||
Increase in cash and cash equivalents |
221 | 2 | ||||||
Cash and cash equivalents at beginning of period |
295 | 30 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 516 | $ | 32 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
27
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ | 516 | $ | 295 | ||||
Restricted cash and cash equivalents |
33 | 3 | ||||||
Accounts receivable, net |
||||||||
Customer |
271 | 258 | ||||||
Other |
132 | 146 | ||||||
Receivables from affiliates |
3 | 2 | ||||||
Inventories, net |
||||||||
Fossil fuel |
38 | 43 | ||||||
Materials and supplies |
26 | 26 | ||||||
Prepaid utility taxes |
43 | 11 | ||||||
Regulatory assets |
37 | 34 | ||||||
Other |
22 | 24 | ||||||
|
|
|
|
|||||
Total current assets |
1,121 | 842 | ||||||
|
|
|
|
|||||
Property, plant and equipment, net |
7,400 | 7,141 | ||||||
Deferred debits and other assets |
||||||||
Regulatory assets |
1,651 | 1,583 | ||||||
Investments |
26 | 28 | ||||||
Receivable from affiliates |
466 | 405 | ||||||
Prepaid pension asset |
353 | 347 | ||||||
Other |
24 | 21 | ||||||
|
|
|
|
|||||
Total deferred debits and other assets |
2,520 | 2,384 | ||||||
|
|
|
|
|||||
Total assets |
$ | 11,041 | $ | 10,367 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
28
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
||||||
(Unaudited) | ||||||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||||
Current liabilities |
||||||||
Long-term debt due within one year |
$ | 300 | $ | 300 | ||||
Accounts payable |
282 | 281 | ||||||
Accrued expenses |
108 | 109 | ||||||
Payables to affiliates |
64 | 55 | ||||||
Customer deposits |
60 | 58 | ||||||
Regulatory liabilities |
128 | 112 | ||||||
Other |
26 | 29 | ||||||
|
|
|
|
|||||
Total current liabilities |
968 | 944 | ||||||
|
|
|
|
|||||
Long-term debt |
2,579 | 2,280 | ||||||
Long-term debt to financing trusts |
184 | 184 | ||||||
Deferred credits and other liabilities |
||||||||
Deferred income taxes and unamortized investment tax credits |
2,964 | 2,792 | ||||||
Asset retirement obligations |
28 | 27 | ||||||
Non-pension postretirement benefits obligations |
288 | 287 | ||||||
Regulatory liabilities |
551 | 527 | ||||||
Other |
87 | 90 | ||||||
|
|
|
|
|||||
Total deferred credits and other liabilities |
3,918 | 3,723 | ||||||
|
|
|
|
|||||
Total liabilities |
7,649 | 7,131 | ||||||
|
|
|
|
|||||
Commitments and contingencies |
||||||||
Shareholders equity |
||||||||
Common stock |
2,473 | 2,455 | ||||||
Retained earnings |
918 | 780 | ||||||
Accumulated other comprehensive income, net |
1 | 1 | ||||||
|
|
|
|
|||||
Total shareholders equity |
3,392 | 3,236 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders equity |
$ | 11,041 | $ | 10,367 | ||||
|
|
|
|
See the Combined Notes to Consolidated Financial Statements
29
PECO ENERGY COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY
(Unaudited)
(In millions) | Common Stock |
Retained Earnings |
Accumulated Other Comprehensive Income, net |
Total Shareholders Equity |
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Balance, December 31, 2015 |
$ | 2,455 | $ | 780 | $ | 1 | $ | 3,236 | ||||||||
Net income |
| 346 | | 346 | ||||||||||||
Common stock dividends |
| (208 | ) | | (208 | ) | ||||||||||
Allocation of tax benefit from parent |
18 | | | 18 | ||||||||||||
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Balance, September 30, 2016 |
$ | 2,473 | $ | 918 | $ | 1 | $ | 3,392 | ||||||||
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See the Combined Notes to Consolidated Financial Statements
30
BALTIMORE GAS AND ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited)
Three Months Ended September 30, |
Nine Months Ended September 30, |
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(In millions) | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Operating revenues |
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Electric operating revenues |
$ | 733 | $ | 656 | $ | 1,993 | $ | 1,910 | ||||||||
Natural gas operating revenues |
72 | 66 | 412 | 468 | ||||||||||||
Operating revenues from affiliates |
7 | 3 | 16 | 10 | ||||||||||||
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Total operating revenues |
812 | 725 | 2,421 | 2,388 | ||||||||||||
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Operating expenses |
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Purchased power |
164 | 159 | 399 | 497 | ||||||||||||
Purchased fuel |
14 | 11 | 109 | 167 | ||||||||||||
Purchased power from affiliate |
182 | 141 | 486 | 373 | ||||||||||||
Operating and maintenance |
150 | 138 | 494 | 412 | ||||||||||||
Operating and maintenance from affiliates |
28 | 31 | 94 | 87 | ||||||||||||
Depreciation and amortization |
101 | 79 | 307 | 271 | ||||||||||||
Taxes other than income |
58 | 57 | 172 | 169 | ||||||||||||
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Total operating expenses |
697 | 616 | 2,061 | 1,976 | ||||||||||||
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Gain on sale of assets |
| 1 | | 1 | ||||||||||||
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Operating income |
115 | 110 | 360 | 413 | ||||||||||||
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Other income and (deductions) |
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Interest expense, net |
(24 | ) | (21 | ) | (64 | ) | (62 | ) | ||||||||
Interest expense to affiliates |
(4 | ) | (4 | ) | (12 | ) | (11 | ) | ||||||||
Other, net |
5 | 4 | 16 | 13 | ||||||||||||
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Total other income and (deductions) |
(23 | ) | (21 | ) | (60 | ) | (60 | ) | ||||||||
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Income before income taxes |
92 | 89 | 300 | 353 | ||||||||||||
Income taxes |
36 | 35 | 109 | 141 | ||||||||||||
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Net income |
56 | 54 | 191 | 212 | ||||||||||||
Preference stock dividends |
2 | 3 | 8 | 10 | ||||||||||||
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Net income attributable to common shareholder |
$ | 54 | $ | 51 | $ | 183 | $ | 202 | ||||||||
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Comprehensive income |
$ | 56 | $ | 54 | $ | 191 | $ | 212 | ||||||||
Comprehensive income attributable to preference stock dividends |
2 | 3 | 8 | 10 | ||||||||||||
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Comprehensive income attributable to common shareholder |
$ | 54 | $ | 51 | $ | 183 | $ | 202 | ||||||||
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See the Combined Notes to Consolidated Financial Statements
31
BALTIMORE GAS AND ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30, |
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(In millions) | 2016 | 2015 | ||||||
Cash flows from operating activities |
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Net income |
$ | 191 | $ | 212 | ||||
Adjustments to reconcile net income to net cash flows provided by operating activities: |
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Depreciation, amortization and accretion |
307 | 271 | ||||||
Impairment of long-lived assets and losses on regulatory assets |
52 | | ||||||
Deferred income taxes and amortization of investment tax credits |
54 | 79 | ||||||
Other non-cash operating activities |
109 | 111 | ||||||
Changes in assets and liabilities: |
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Accounts receivable |
(50 | ) | 62 | |||||
Receivables from and payables to affiliates, net |
(10 | ) | (8 | ) | ||||
Inventories |
(7 | ) | 10 | |||||
Accounts payable and accrued expenses |
43 | 34 | ||||||
Collateral posted, net |
| (27 | ) | |||||
Income taxes |
19 | (6 | ) | |||||
Pension and non-pension postretirement benefit contributions |
(46 | ) | (14 | ) | ||||
Other assets and liabilities |
(2 | ) | (28 | ) | ||||
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Net cash flows provided by operating activities |
660 | 696 | ||||||
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Cash flows from investing activities |
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Capital expenditures |
(611 | ) | (506 | ) | ||||
Change in restricted cash |
(22 | ) | 2 | |||||
Other investing activities |
19 | 13 | ||||||
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Net cash flows used in investing activities |
(614 | ) | (491 | ) | ||||
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Cash flows from financing activities |
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Changes in short-term borrowings |
(210 | ) | (70 | ) | ||||
Issuance of long-term debt |
850 | | ||||||
Retirement of long-term debt |
(39 | ) | (37 | ) | ||||
Redemption of preference stock |
(190 | ) | | |||||
Dividends paid on preference stock |
(8 | ) | (10 | ) | ||||
Dividends paid on common stock |
(134 | ) | (116 | ) | ||||
Contributions from parent |
28 | 6 | ||||||
Other financing activities |
(11 | ) | (15 | ) | ||||
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Net cash flows provided by (used in) financing activities |
286 | (242 | ) | |||||
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Increase (Decrease) in cash and cash equivalents |
332 | (37 | ) | |||||
Cash and cash equivalents at beginning of period |
9 | 64 | ||||||
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Cash and cash equivalents at end of period |
$ | 341 | $ | 27 | ||||
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See the Combined Notes to Consolidated Financial Statements
32
BALTIMORE GAS AND ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
(Unaudited)
(In millions) | September 30, 2016 |
December 31, 2015 |
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(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets |
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Cash and cash equivalents |
$ | 341 | $ | 9 | ||||
Restricted cash and cash equivalents |
46 | 24 | ||||||
Accounts receivable, net |
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Customer |
332 | 300 | ||||||
Other |
100 | 112 | ||||||
Inventories, net |
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Gas held in storage |
37 | 36 | ||||||
Materials and supplies |
39 | 33 | ||||||
Prepaid utility taxes |
| 61 | ||||||
Regulatory assets |
214 | 267 | ||||||
Other |
5 | 3 | ||||||
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Total current assets |