Exelon 2014 Annual Report Download - page 111

by performing various stress test scenarios, such as commodity price movements, increases in margin-related transactions, changes
in hedging levels and the impacts of hypothetical credit downgrades. The Registrants have continued to closely monitor events in the
financial markets and the financial institutions associated with the credit facilities, including monitoring credit ratings and outlooks,
credit default swap levels, capital raising and merger activity.
The Registrants believe their cash flow from operating activities, access to credit markets and their credit facilities provide sufficient
liquidity. If Generation lost its investment grade credit rating as of December 31, 2014, it would have been required to provide
incremental collateral of $2.4 billion of collateral obligations for derivatives, non-derivatives, normal purchase normal sales contracts
and applicable payables and receivables, net of the contractual right of offset under master netting agreements, which is well within
its current available credit facility capacities of $4.6 billion. If ComEd lost its investment grade credit ratings as of December 31,
2014, it would have been required to provide incremental collateral of $14 million, which is well within its current available credit
facility capacity of $998 million. If PECO lost its investment grade credit rating as of December 31, 2014 it would not be required to
provide collateral pursuant to PJM’s credit policy and could have been required to provide collateral of $36 million related to its
natural gas procurement contracts, which, in the aggregate, are well within PECO’s current available credit facility capacity of $599
million. If BGE lost its investment grade credit rating as of December 31, 2014 it would have been required to provide collateral of $2
million pursuant to PJM’s credit policy and could have been required to provide collateral of $79 million related to its natural gas
procurement contracts, which, in the aggregate, are well within BGE’s current available credit facility capacity of $600 million.
Exelon Credit Facilities
See Note 13—Debt and Credit Agreements of the Combined Notes to Consolidated Financial Statements for discussion of the
Registrants’ credit facilities and short term borrowing activity.
Other Credit Matters
Capital Structure. At December 31, 2014, the capital structures of the Registrants consisted of the following:
Exelon Generation ComEd PECO BGE
Long-term debt ........................................................... 46% 30% 42% 41% 36%
Long-term debt to affiliates (a) ............................................... 1% 7% 1% 3% 5%
Common equity .......................................................... 52% — 55% 56% 53%
Member’s equity ......................................................... — 63% — — —
Preference Stock ......................................................... — — — — 4%
Commercial paper and notes payable ........................................ 1% — 2% — 2%
(a) Includes approximately $648 million, $206 million, $184 million and $258 million owed to unconsolidated affiliates of Exelon, ComEd, PECO and BGE
respectively. These special purpose entities were created for the sole purposes of issuing mandatorily redeemable trust preferred securities of ComEd,
PECO and BGE. See Note 2—Variable Interest Entities of the Combined Notes to Consolidated Financial Statements for additional information
regarding the authoritative guidance for VIEs.
Intercompany Money Pool. To provide an additional short-term borrowing option that will generally be more favorable to the
borrowing participants than the cost of external financing, Exelon operates an intercompany money pool. Maximum amounts
contributed to and borrowed from the money pool by participants during the year ended December 31, 2014, in addition to the net
contribution or borrowing as of December 31, 2014, are presented in the following table:
Maximum
Contributed
Maximum
Borrowed
December 31, 2014
Contributed
(Borrowed)
Generation .............................................................. $ 84 $573 $ —
PECO .................................................................. 129 35 —
BSC .................................................................... 15 360 (261)
Exelon Corporate ......................................................... 780 N/A 261
Investments in Nuclear Decommissioning Trust Funds. Exelon, Generation and CENG maintain trust funds, as required by the
NRC, to fund certain costs of decommissioning nuclear plants. The mix of securities in the trust funds is designed to provide returns
to be used to fund decommissioning and to offset inflationary increases in decommissioning costs. Generation actively monitors the
investment performance of the trust funds and periodically reviews asset allocations in accordance with Generation’s NDT fund
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