ComEd 2013 Annual Report Download - page 153

DLC Program Costs. TheDLC programcostsincludeequipment,installation,andinformation technology costsnecessaryto
implement theDLC Programunder PECO’s EE&C PhaseIPlans. PECO receivedfull costrecoverythrough PhaseIcollectionsand
will amortizethecostsasacredittotheincomestatement to offset the relateddepreciation expenseduringthesame periodthrough
September 2025, which is theremaininguseful lifeoftheassets. PECO is not payinginterestontheseover-recoveredcosts.
Electric distribution tax repairs. PECO’s 2010 electric distribution rate casesettlement requiredthat theexpectedcash benefitfrom
the application ofRevenue Procedure 2011-43,whichwasissuedon August19, 2011,to prior taxyearsberefundedto customers
over a seven-year period. Creditsbegan beingreflectedincustomer billson January1,2012.Nointerestwill bepaid to customers.
Gas distribution tax repairs. PECO’s 2010 natural gasdistribution rate casesettlement requiredthat theexpectedcash benefitfrom
the application ofnewtaxrepairsdeduction methodologiesfor 2010 andprior taxyearsberefundedto customersover a seven-year
period. InSeptember 2012, PECO filedan application withtheIRSto changeitsmethodofaccountingfor gasdistribution repairsfor
the 2011 taxyear.Creditsbegan beingreflectedincustomer billson January1,2013.Nointerestwill bepaid to customers.
Under (Over)-recovered uncollectible accounts. Asaresult oftheFebruary2010 ICC order approvingrecoveryofComEd’s
uncollectible accounts, ComEd hastheabilityto adjustitsratesannuallyto reflecttheincreasesanddecreasesin annual
uncollectible accountsexpensestartingwithyear 2008. ComEd recordedaregulatoryasset for thecumulativeunder-collectionsin
2008and2009. Recoveryoftheinitial regulatoryasset wascompletedover an approximate 14-monthtimeframewhich began in
April 2010.Therecoveryor refundofthedifferenceintheuncollectible accountsexpense applicable to theyearsstartingwith
January1,2010,will take placeover a 12-monthtimeframebeginninginJune ofthefollowingyear.ComEd is not earninga return
or payinginterestontheseunder (over)-recoveredcosts.
Under (Over)-recovered AEPS costs current asset (liability). TheAEPS costsrepresent theadministrativeandAEC costs
incurredto complywiththerequirementsoftheAEPS Act, which are recoverable on a full andcurrent basis. PECO earnsintereston
under-recoveredcostsandpays interestonover-recoveredcoststo customers. Beginningin 2013,thesecostsare includedwithin
the energy andtransmission programs line item.
Revenue subject to refund. Theseamountsrepresent refunds of$37million andassociatedinterestof$1million ComEd owesto
customersprimarilyrelatedto the treatment ofpost-testyear accumulateddepreciation issue inthe 2007Rate Case.See above
discussion ofthe 2007Rate Casefor further information.
Purchase of Receivables Programs
ComEd, PECO and BGE are required, under separate legislation andregulationsinIllinois, PennsylvaniaandMaryland,
respectively, to purchasecertainreceivablesfromretail electric andnatural gassuppliers. For retailsuppliersparticipatinginthe
utilities’ consolidatedbilling, ComEd, PECO and BGE must purchasetheircustomer accountsreceivables. ComEd purchases
receivablesat a discount to primarilyrecover uncollectible accountsexpensefromthesuppliers. BGE’s tariff providesthat
receivablesare to be purchasedat a discount,primarilyto recover uncollectible accountsexpensefromthesuppliers. However,if
thediscount rate is negative,the tariff providesthat thereceivable is purchasedat a zero discount rate. BGE is currentlypurchasing
certainreceivablesat a zero discount rate. PECO is requiredto purchasereceivablesat facevalue andispermittedto recover
uncollectible accountsexpensefromcustomersthrough distribution rates. Exelon,ComEd, PECO, and BGE do not recordunbilled
commodityreceivablesunder theirPOR programs. Purchasedbilledreceivablesare classifiedinother accountsreceivable,net on
Exelon’s, ComEd’s, PECO’s and BGE’s ConsolidatedBalanceSheets. Thefollowingtablesprovideinformation about the purchased
receivablesofExelon asofDecember 31,2013 and2012.
As of
December 31,
2013 2012
Purchasedreceivables(a)............................................................................. $263$191
Allowancefor uncollectible accounts(b) .................................................................. (30)(21)
Purchasedreceivables, net ........................................................................... $233 $170
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