ComEd 2013 Annual Report Download - page 185

Thefollowingtable providesasummaryofthederivativefairvalue balancesrecordedbytheRegistrantsasofDecember 31,2012:
Generation ComEd Exelon
Derivatives
Economic
Hedges (a)
Proprietary
Trading
Collateral
and
Netting (b) Subtotal (c)
Economic
Hedges (a)(d)
Intercompany
Eliminations (a)
Total
Derivatives
Mark-to-market derivativeassets(current
assets) .................................. $2,883$2,469 $(4,418) $ 934$— $— $934
Mark-to-market derivativeassetswithaffiliate
(current assets) 226— —226— (226) —
Mark-to-market derivativeassets(noncurrent
assets) .................................. 1,792724(1,638) 878 — — 878
Total mark-to-market derivativeassets .......... $4,901 $3,193$(6,056) $2,038$— $(226) $1,812
Mark-to-market derivativeliabilities(current
liabilities) ................................. $(2,419) $(2,432) $ 4,519$(332)$(18) $— $(350)
Mark-to-market derivativeliabilitywithaffiliate
(current liabilities) — — — — (226) 226—
Mark-to-market derivativeliabilities(noncurrent
liabilities) ................................. (1,080) (689) 1,568 (201) (49) — (250)
Total mark-to-market derivativeliabilities......... $(3,499) $(3,121)$6,087 $ (533)$(293)$226$(600)
Total mark-to-market derivative net assets
(liabilities) ................................ $1,402 $72$31 $1,505$(293)$— $1,212
(a)Includescurrent andnoncurrent assetsfor Generation andcurrent andnoncurrent liabilitiesfor ComEd of$226million relatedto thefairvalue ofthefive-year
financial swap contractbetween Generation andComEd, asdescribedabove.For Generation,excludes$28million ofnoncurrent liabilityrelatingto an interest rate
swap inconnection witha loan agreement to fundAntelope Valleyas discussedabove.
(b) Exelon andGeneration net all available amountsallowedunder thederivativeaccountingguidanceonthebalancesheet.Theseamountsinclude unrealized
derivative transactionswiththesamecounterpartyunder legallyenforceable master nettingagreementsandcash collateral.InsomecasesExelon andGeneration
mayhaveother offsettingexposures, subjecttoamaster nettingor similar agreement,such astradereceivablesandpayables, transactionsthat do not qualify as
derivatives, andlettersofcredit.These are not reflectedinthetable above.
(c) Current andnoncurrent assetsare shown net ofcollateral of$113 million and$201 million,respectively, andcurrent andnoncurrent liabilitiesare shown net of
collateral of$(214) million and$(131)million,respectively. The total cash collateral received, net ofcash collateral postedandoffset againstmark-to-market assets
andliabilitieswas$(31)million at December 31,2012.
(d) Includescurrent andnoncurrent liabilitiesrelatingto floating-to-fixedenergy swap contractswithunaffiliatedsuppliers.
Cash Flow Hedges. As discussedpreviously, effectiveprior to themerger withConstellation,Generation de-designatedall ofits
cash flowhedgesrelatingto commoditypricerisk. Becausetheunderlyingforecastedtransactionsremain at least reasonably
possible,thefairvalue oftheeffective portion ofthesecash flowhedgeswasfrozen inaccumulated OCI andisreclassifiedto results
ofoperationswhen theforecastedpurchaseorsale ofthe energy commodityoccurs, or becomesprobable ofnot occurring.
Generation began recordingprospectivechangesinthefairvalue oftheseinstrumentsthrough current earnings fromthedate ofde-
designation.Approximately$195 million ofthese net pre-taxunrealizedgainswithinaccumulated OCI are expectedto be
reclassifiedfromaccumulated OCI duringthenexttwelvemonths by Generation.Generation expectsthesettlement ofthemajority
ofitscash flowhedgeswill occur during2013 through 2014.
Exelon discontinueshedgeaccountingwhen itdeterminesthat thederivativeis no longer effectiveinoffsettingchangesinthecash
flows ofahedgeditemor when itis no longer probable that theforecastedtransaction will occur.For theyear ended2012,the
amount reclassifiedinto earnings asaresult ofthediscontinuanceofcash flowhedgeswas immaterial.
179