ComEd 2013 Annual Report Download - page 78

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Increase
(Decrease)
2013 vs. 2012
Increase
(Decrease)
2012 vs. 2011
Regulatoryrequiredprograms
Energy efficiency anddemandresponse programs........................................... 20 33
Purchasedpower administrativecosts ..................................................... — (1)
20 32
Increasein operatingandmaintenanceexpense............................................. $ 23 $156
(a)Theincreaseincludescontractingcostsresultingfromnewprojectsassociatedwith EIMAfor theyearsendedDecember 31,2013 and2012.See
Note 3—RegulatoryMattersoftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information regarding EIMA.
(b) ComEd recordedone-time net benefitsinMay2012 asaresult ofthe 2010 Rate Caseorder to reestablish previouslyexpensedplant balancesandto recover
previouslyincurredcostsrelatedto Exelon’s 2009restructuringplan.
(c) Under EIMA,ComEd makesrecurringpaymentsfor contribution to a ScienceandTechnology Innovation Trustfundthat will beusedto fundenergy innovation.
(d) ComEd is allowedto recover fromor refundto customersthedifferencebetween theutility’s annual uncollectible accountsexpenseandtheamountscollectedin
ratesannuallythrough arider mechanism. In 2013,ComEd recordeda net reduction in operatingandmaintenanceexpense relatedto uncollectible accountsdue to
thetimingofregulatorycostrecoveryandcustomerspurchasingelectricityfromcompetitive electric generation suppliersasaresult ofmunicipal aggregation.An
equal andoffsettingreduction hasbeen recognizedin operatingrevenuesfor the periods presented.
Depreciation and Amortization Expense
Thechangesindepreciation andamortization expensefor 2013 comparedto 2012 and2012 comparedto 2011,consistedofthe
following:
Increase
2013 vs. 2012
Increase
2012 vs. 2011
Depreciation associatedwith higher plant balances .......................................... $ 22 $22
Amortization ofstorm-relatedregulatoryassets(a)............................................ 4 4
Amortization of MGP regulatoryassets(b) ................................................... 278
Amortization ofother regulatoryassets..................................................... 6 6
Other ................................................................................ — 16
Increaseindepreciation andamortization expense........................................... $ 59 $56
(a)Under EIMA,ComEd is requiredto recover costsassociatedwith significant storms over a five-year periodthrough theamortization ofaregulatoryasset.
(b) An equal andoffsettingamount for theamortization expense relatedto MGP remediation expendituresisreflectedin operatingrevenuesduringthe periods
presented.
Taxes Other Than Income
Year Ended December 31, 2013 Compared to Year Ended December 31, 2012. Taxesother than income, which can varyperiodto
period, includemunicipal andstate utilitytaxes, real estate taxes, andpayroll taxes. Taxesother than incomeincreasedprimarily
due to increasedIllinois electricity distribution taxes.
Year Ended December 31, 2012 Compared to Year Ended December 31, 2011. Taxesother than incometaxesdecreasedprimarily
due to decreasedIllinois electricity distribution taxes.
Interest Expense, Net
Thechangesininterestexpense,net for 2013 comparedto 2012 and2012 comparedto 2011 consistedofthefollowing:
Increase
(Decrease)
2013 vs. 2012
Increase
(Decrease)
2012 vs. 2011
Interestexpense relatedto uncertaintaxpositions(a)......................................... $281$—
Interestexpenseondebt(includingfinancingtrusts).......................................... 2(26)
Other ................................................................................ (11)(12)
Increase(decrease)ininterestexpense,net $272$(38)
(a)Primarilyreflectstheremeasurement ofExelon’s like-kindexchangetaxposition inthefirstquarter of2013.See Note 14—IncomeTaxesoftheCombinedNotesto
ConsolidatedFinancial Statementsfor additional information.
72