ComEd 2013 Annual Report Download - page 130

Consolidated Variable Interest Entities
Thecarryingamountsandclassification oftheconsolidated VIEs’ assetsandliabilitiesincludedinExelon’s consolidatedfinancial
statementsat December 31,2013 and2012 are asfollows:
December 31,
2013 (a) 2012 (a)(b)
Current assets ................................................................................. $ 484 $ 550
Noncurrent assets .............................................................................. 1,9051,719
Total assets................................................................................ $2,389 $2,269
Current liabilities................................................................................ $ 566 $ 684
Noncurrent liabilities ............................................................................ 774 775
Total liabilities .............................................................................. $1,340$1,459
(a)Includescertain purchaseaccountingadjustmentsnot pusheddowntotheBGE standalone entity.
(b) Includestotal assetsof$146 million andtotal liabilitiesof$42million asofDecember 31,2012 relatedto a retailsupplycompanythat is not a consolidated VIE asof
December 31,2013.See additional information below.
Except asspecificallynotedbelow, theassetsinthetable above are restrictedfor settlement oftheVIE obligationsandtheliabilities
inthe precedingtable can onlybesettledusing VIE resources.
RSB BondCo LLC.In 2007, BGE formedRSB BondCoLLC (BondCo), aspecial purposebankruptcy remote limitedliability
company, to acquire andholdrate stabilization propertyandto issue andservicebonds securedbythe rate stabilization property. In
June 2007, BondCo purchasedrate stabilization propertyfrom BGE, includingtherighttoassess, collect,andreceive non-
bypassable rate stabilization chargespayable by all residential electric customersof BGE. Thesechargesare beingassessedin
order to recover previouslyincurredpower purchasecoststhat BGE deferredpursuant to Senate Bill 1. BGE hasdeterminedthat
BondCois aVIE for which itis theprimarybeneficiary. Asaresult, BGE consolidatesBondCo.
BondCo’s assetsare restrictedandcan onlybeusedto settle theobligationsofBondCo.Further, BGE is requiredto remit all
paymentsitreceivesfromcustomersfor rate stabilization chargesto BondCo.During2013,2012,and2011, BGE remitted$83
million, $85 million,and$92million,respectively, to BondCo.
BGE did not provideanyadditional financial support to BondCoduring2013.Further, BGE doesnot haveanycontractual
commitmentsor obligationsto provideadditional financial support to BondCo unless additional rate stabilization bonds are issued.
TheBondCocreditorsdo not haveanyrecoursetothegeneral creditof BGE intheevent the rate stabilization chargesare not
sufficient to cover thebondprincipal andinterestpaymentsofBondCo.
Retail Gas Group.During2009, Constellation formedtwonewentities, which noware part ofGeneration,andcombinedthemwith
itsexistingretailgasactivitiesinto a retailgasentitygroup for the purposeofenteringinto a collateralizedgassupplyagreement with
athird-partygassupplier. While Generation owns100%ofthese entities, ithasbeen determinedthat the retailgasentitygroup is a
VIE becausethere is not sufficient equityto fundthegroup’s activitieswithout theadditional creditsupport that is providedinthe
formofa parental guarantee.Generation is theprimarybeneficiaryofthe retailgasentitygroup;accordingly, Generation
consolidatesthe retailgasentitygroup asaVIE.
Thethird-partygassupplyarrangement is collateralizedasfollows:
•Theassetsofthe retailgasentitygroup mustbeusedto settle obligationsunder thethird-partygassupplyagreement before it
can makeany distributionsto Generation,
•Thethird-partygassupplier hasacollateral interestin all oftheassetsandequityofthe retailgasentitygroup,and
•AsofDecember 31,2013 Exelon provideda$75 million parental guarantee to thethird-partygassupplier insupport ofthe retail
gasentitygroup.
Other than creditsupport providedbythe parental guarantee,Exelon or Generation do not haveanycontractual or other obligations
to provideadditional financial support under thecollateralizedthird-partygassupplyagreement.Thethird-partygassupplycreditors
do not haveanyrecoursetoExelon’s or Generation’s general creditother than the parental guarantee.
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