ComEd 2013 Annual Report Download - page 95

(f) Exelon’s andGeneration’s prior year activityincludestheactivityofConstellation,and BGE inthecaseofExelon,fromthemerger effectivedate ofMarch 12,2012
through December 31,2012.Exelon’s andGeneration’s activityfor 2011 is unadjustedfor theeffectsofthemerger. BGE’s prior year activityincludesitsactivityfor
the12months endedDecember 31,2012 and2011.
Projectedcapital expendituresandother investmentsare subject to periodic reviewandrevision to reflectchangesineconomic
conditionsandother factors.
Generation
Approximately38% and11%ofthe projected2014capital expendituresat Generation are for theacquisition ofnuclear fuel and
investmentsin renewable energy generation,includingAntelope Valleyconstruction costs, respectively, withtheremainingamounts
reflectingadditionsandupgradesto existingfacilities(includingmaterial condition improvementsduringnuclear refuelingoutages).
Alsoincludedinthe projected2014capital expendituresare a portion ofthecostsofaseriesofplannedpower upratesacross
Generation’s nuclear fleet.See “EXELON CORPORATION—ExecutiveOverview,” for more information on nuclear uprates.
OnNovember 30,2012,asubsidiaryofGeneration soldthree Marylandgeneratingstationsandassociatedassetsto Raven Power
Holdings LLC, asubsidiaryofRiverstone Holdings LLC, andreceivednet proceeds ofapproximately$371.Inaddition,Generation
will begintomakecash paymentsofapproximately$31 million to Raven Power Holdings LLC over a twelve-monthperiodbeginning
inJune 2014. In 2012,Generation incurredtransaction costsofapproximately$15million through thedate ofclosingofthe
transaction.Thesale will generate approximately$195 million ofcash taxbenefits, of which $155 million will be realizedin periods
through 2014withthebalancetobereceivedin later years. Therefore,Generation expectsnet after-taxcash sale proceeds of
approximately $495 million through 2014andapproximately$36million insubsequent years.
ComEd, PECO and BGE
Approximately91%, 72%and 89% ofthe projected2014capital expendituresat ComEd, PECO and BGE, respectively, are for
continuingprojectsto maintainandimprove operations, includingenhancingreliabilityandaddingcapacityto the transmission and
distribution systems such asComEd’s reliabilityrelatedinvestmentsrequiredunder EIMA,andComEd’s, PECO’s and BGE’s
construction commitmentsunder PJM’s RTEP. ComEd’s capital expendituresincludesmart grid/smart meter technology required
under EIMA. PECO and BGE capital expendituresincludeinvestmentsrelatedto theirrespectivesmart meter programand SGIG
project,net of DOE expectedreimbursements. Theremainingamountsare for capital additionsto support newbusiness and
customer growth. See Notes3and7oftheCombinedNotesto ConsolidatedFinancial Statementsfor additional information.
In 2010,NERCprovidedguidance to transmission owners, includingComEd, PECO, and BGE, that recommends thecompletion of
performanceassessmentsoftheir transmission lines, withthehighestprioritylinesassessedbyDecember 31,2011,mediumpriority
linesbyDecember 31,2012,andthelowestprioritylinesbyDecember 31,2013.Incompliancewiththis guidance,ComEd, PECO
and BGE submittedtheirmostrecent bi-annual reportsto NERCinJanuary2014. ComEd, PECO and BGE will incur incremental
capital expendituresassociatedwiththis guidancefollowingthecompletion oftheassessments. Specific projectsandexpenditures
are identifiedastheassessmentsare completed. ComEd’s, PECO’s and BGE’s forecasted2014capital expendituresabovereflect
capital spendingfor remediation to becompletedin 2014.
ComEd, PECO and BGE anticipate that theywill fundcapital expenditureswithinternallygeneratedfunds andborrowings, including
ComEd’s capital expendituresassociatedwith EIMAasfurther discussedinNote 3 oftheCombinedNotesto ConsolidatedFinancial
Statements.
Cash Flows from Financing Activities
Cash flows providedby(usedin)financingactivitiesfor 2013,2012 and2011 by Registrant were asfollows:
2013 2012 2011
Exelon .................................................................................. $(826) $(1,085) $(846)
Generation ............................................................................... (384) (777) (196)
ComEd .................................................................................. 61(212)355
PECO ................................................................................... (361)(382) (589)
BGE .................................................................................... (48) 128115
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