Exelon 2014 Annual Report Download - page 113

Contractual Obligations
The following table summarizes Exelon’s future estimated cash payments as of December 31, 2014 under existing contractual
obligations, including payments due by period. See Note 22—Commitments and Contingencies of the Combined Notes to
Consolidated Financial Statements for information regarding the Registrants’ commercial and other commitments, representing
commitments potentially triggered by future events.
Payment due within
Total 2015
2016-
2017
2018-
2019
Due 2020
and beyond
All
Other
Long-term debt (a) ............................................ $21,372 $1,736 $ 3,661 $2,387 $13,588 $ —
Interest payments on long-term debt (b) .......................... 13,105 922 1,755 1,435 8,993 —
Liability and interest for uncertain tax positions (c) .................. 779 — — — — 779
Capital leases ............................................... 32 3 8 9 12 —
Operating leases (d) .......................................... 1,158 99 204 156 699 —
Purchase power obligations (e) .................................. 2,084 590 884 295 315 —
Fuel purchase agreements (f) ................................... 10,020 1,661 2,555 2,048 3,756 —
Electric supply procurement (f) .................................. 1,510 1,057 453 — — —
AEC purchase commitments (f) ................................. 8 1 2 2 3 —
Curtailment services commitments (f) ............................ 115 40 63 12 — —
Long-term renewable energy and REC commitments (g) ............. 1,516 75 152 162 1,127 —
Other purchase obligations (h) .................................. 894 336 408 66 84 —
Construction commitments (i) ................................... 1,143 43 1,100 — — —
PJM regional transmission expansion commitments (j) .............. 786 259 414 113 — —
Spent nuclear fuel obligation (k) ................................. 1,021 — — — 1,021 —
Pension minimum funding requirement (l) ......................... 1,892 447 782 424 239 —
Total contractual obligations ................................... $57,435 $7,269 $12,441 $7,109 $29,837 $779
(a) Includes $648 million due after 2020 to ComEd, PECO and BGE financing trusts.
(b) Interest payments are estimated based on final maturity dates of debt securities outstanding at December 31, 2014 and do not reflect anticipated future refinancing,
early redemptions or debt issuances. Variable rate interest obligations are estimated based on rates as of December 31, 2014. Includes estimated interest payments
due to ComEd, PECO and BGE financing trusts.
(c) As of December 31, 2014, Exelon’s liability for uncertain tax positions and related interest payable was $469 million and $310 million, respectively. Exelon was unable
to reasonably estimate the timing of liability and interest payments and receipts in individual years beyond 12 months due to uncertainties in the timing of the effective
settlement of tax positions. Exelon has other unrecognized tax positions that were not recorded on the Consolidated Balance Sheet in accordance with authoritative
guidance. See Note 14—Income Taxes of the Combined Notes to Consolidated Financial Statements for further information regarding unrecognized tax positions.
(d) Excludes PPAs and other capacity contracts that are accounted for as operating leases. These amounts are included within purchase power obligations. Includes
estimated cash payments for service fees related to PECO’s meter reading operating lease.
(e) Purchase power obligations include PPAs and other capacity contracts including those that are accounted for as operating leases. Amounts presented represent
Generation’s expected payments under these arrangements at December 31, 2014, including those related to CENG. Expected payments include certain fixed
capacity charges which may be reduced based on plant availability. Expected payments exclude renewable PPA contracts that are contingent in nature. These
obligations do not include ComEd’s SFCs as these contracts do not require purchases of fixed or minimum quantities. See Notes 3—Regulatory Matters and 22—
Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements.
(f) Represents commitments to purchase nuclear fuel, natural gas and related transportation, storage capacity and services, procure electric supply, and purchase AECs
and curtailment services. See Note 22—Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements for electric and gas purchase
commitments.
(g) Primarily related to ComEd 20-year contracts for renewable energy and RECs beginning in June 2012. ComEd is permitted to recover its renewable energy and REC
costs from retail customers with no mark-up. The commitments represent the maximum settlements with suppliers for renewable energy and RECs under the existing
contract terms. See Note 3—Regulatory Matters of Combined Notes to Consolidated Financial Statements for additional information.
(h) Represents commitments for services, materials, information technology, smart meter installation and commitments related to assets-held-for-sale. See Note 22—
Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements for additional information.
(i) Represents commitments for Generation’s ongoing investments in renewables development, new natural gas and biomass generation construction. See Note 22—
Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements.
(j) Under their operating agreements with PJM, ComEd, PECO and BGE are committed to the construction of transmission facilities to maintain system reliability. These
amounts represent ComEd’s, PECO’s and BGE’s expected portion of the costs to pay for the completion of the required construction projects. See Note 3—
Regulatory Matters of Combined Notes to Consolidated Financial Statements for additional information.
(k) See Note 22—Commitments and Contingencies of the Combined Notes to Consolidated Financial Statements for further information regarding spent nuclear fuel
obligations.
(l) These amounts represent Exelon’s expected contributions to its qualified pension plans. For Exelon’s largest qualified pension plan, the projected contributions reflect
a funding strategy of contributing the greater of $250 million until the plan is fully funded on an accumulated benefit obligation basis, and the minimum amounts under
ERISA to avoid benefit restrictions and at-risk status thereafter. The remaining qualified pension plans’ contributions are generally based on the estimated minimum
pension contributions required under ERISA and the Pension Protection Act of 2006, as well as contributions necessary to avoid benefit restrictions and at-risk status.
These amounts represent estimates that are based on assumptions that are subject to change. The minimum required contributions for years after 2020 are not
included. See Note 16—Retirement Benefits of the Combined Notes to Consolidated Financial Statements for further information regarding estimated future pension
benefit payments.
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