Exelon 2014 Annual Report Download - page 104

Generation closed on the sale of its 41.98% and 31.28% ownership interests in the Keystone and Conemaugh coal-fired power
plants and related equity interests in Keystone Fuels, LLC and Conemaugh Fuels, LLC, respectively, for a purchase price of
approximately $473 million during the fourth quarter of 2014. The proceeds from the sale are reflected in Generation’s cash flows
from investing activities above. See Note 4—Mergers, Acquisitions, and Dispositions of the Combined Notes to Consolidated
Financial Statements for further information.
During the fourth quarter of 2014, Generation closed on the sale of its fully-owned equity interest in Fore River and West Valley
generating stations, for a combined purchase price of approximately $577 million. The proceeds from the sale are reflected in
Generation’s cash flows from investing activities above. See Note 4—Mergers, Acquisitions, and Dispositions of the Combined
Notes to Consolidated Financial Statements for further information.
During the fourth quarter of 2014, Generation acquired the competitive retail electric and natural gas business activities of Integrys
Energy Group, Inc. through the purchase of all of the stock of its wholly owned subsidiary, Integrys Energy Services, Inc. for a
purchase price of $332 million, including net working capital. The acquisition costs from the sale are reflected in Generation’s cash
flows from investing activities above. See Note 4—Mergers, Acquisitions, and Dispositions of the Combined Notes to Consolidated
Financial Statements for further information.
Generation has entered into several agreements to acquire equity interests in privately held and development stage entities which
develop energy-related technology. The agreements include a series of scheduled investment commitments, including in-kind
services contributions, totaling approximately $167 million through 2018 to fund anticipated planned capital and operating needs of
the associated companies.
Generation has executed, or expects to execute, construction and services contracts to build new gas turbine units in Texas and
Maryland and a new biomass-fueled cogeneration facility in Georgia. The total estimated expenditures for these projects are
approximately $1.8 billion and achievement of commercial operations is expected between 2015 and 2017 for all these projects.
Capital expenditures by Registrant for the year ended December 31, 2014, 2013, and 2012 and projected amounts for 2015 are as
follows:
Projected
2015 (a) 2014 2013 2012
Exelon (b)(e)(f) ................................................................... $7,200 $6,077 $5,395 $5,789
Generation (b)(e)(f) ............................................................... 3,625 3,012 2,752 3,554
ComEd (c) ..................................................................... 2,200 1,689 1,433 1,246
PECO ........................................................................ 550 661 537 422
BGE (e) ....................................................................... 700 620 587 582
Other (d) ...................................................................... 125 95 86 (15)
(a) Total projected capital expenditures do not include adjustments for non-cash activity.
(b) Includes nuclear fuel.
(c) The projected capital expenditures include $617 million of expected incremental spending pursuant to EIMA, ComEd has committed to invest approximately $2.6
billion over a ten year period to modernize and storm-harden its distribution system and to implement smart grid technology.
(d) Other primarily consists of corporate operations and BSC.
(e) Exelon’s and Generation’s 2012 activity includes the activity of Constellation, and BGE in the case of Exelon, from the merger effective date of March 12, 2012
through December 31, 2012. BGE’s 2012 activity includes its activity for the twelve months ended December 31, 2012.
(f) On April 1, 2014, Generation assumed operational control of CENG’s nuclear fleet. As a result, CENG is included on a fully consolidated basis beginning April 1,
2014.
Projected capital expenditures and other investments are subject to periodic review and revision to reflect changes in economic
conditions and other factors.
In 2014, Exelon and its affiliates initiated a comprehensive project to ensure corporate-wide compliance with Version 5 of the North
American Electric Reliability Corporation (NERC) Critical Infrastructure Protection Standards (CIP V.5) which will become effective
on April 1, 2016. Generation, ComEd, PECO and BGE will be incurring incremental capital expenditures in 2014 through 2016
associated with the CIP V.5 compliance implementation project, which are included in projected capital expenditures above.
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