Exelon 2014 Annual Report Download - page 117

The following table provides detail on changes in Exelon’s, Generation’s, and ComEd’s commodity mark-to-market net asset or
liability balance sheet position from January 1, 2013 to December 31, 2014. It indicates the drivers behind changes in the balance
sheet amounts. This table incorporates the mark-to-market activities that are immediately recorded in earnings, as well as the
settlements from OCI to earnings and changes in fair value for the cash flow hedging activities that are recorded in Accumulated OCI
on the Consolidated Balance Sheets. This table excludes all normal purchase and normal sales contracts and does not segregate
proprietary trading activity. See Note 12—Derivative Financial Instruments of the Combined Notes to Consolidated Financial
Statements for additional information on the balance sheet classification of the mark-to-market energy contract net assets (liabilities)
recorded as of December 31, 2014 and December 31, 2013.
Generation ComEd
Intercompany
Eliminations (b) Exelon
Total mark-to-market energy contract net assets (liabilities) at January 1,
2013 (a) ............................................................. $1,505 $(293) $ — $1,212
Total change in fair value during 2013 of contracts recorded in result of
operations ........................................................... 444 — (6) 438
Reclassification to realized at settlement of contracts recorded in results of
operations ........................................................... 25 — 13 38
Reclassification to realized at settlement from accumulated OCI (c) .............. (683) — 219 (464)
Changes in fair value—energy derivatives (d) ................................ — 100 (226) (126)
Changes in allocated collateral ............................................ (175) — — (175)
Changes in net option premium paid/(received) .............................. 36 — — 36
Option premium amortization ............................................. (104) — — (104)
Other balance sheet reclassifications ....................................... (1) — — (1)
Total mark-to-market energy contract net assets (liabilities) at December 31,
2013 (a) ............................................................. 1,047 $(193) $ — 854
Contracts acquired at merger date (e) ....................................... 128 128
Total change in fair value during 2014 of contracts recorded in result of
operations ........................................................... (608) — — (608)
Reclassification to realized at settlement of contracts recorded in results of
operations ........................................................... (21) — — (21)
Reclassification to realized at settlement from accumulated OCI ................ (195) — — (195)
Changes in fair value—energy derivatives (d) ................................ — (14) — (14)
Changes in allocated collateral ............................................ 1,503 — — 1,503
Changes in net option premium paid/(received) .............................. (38) — — (38)
Option premium amortization ............................................. (122) — — (122)
Other balance sheet reclassifications ....................................... 18 — — 18
Total mark-to-market energy contract net assets (liabilities) at December 31, 2014
(a) .................................................................. $1,712 $(207) $ — $1,505
(a) Amounts are shown net of collateral paid to and received from counterparties.
(b) Amounts related to the five-year financial swap between Generation and ComEd.
(c) For Generation, includes $219 million of losses from reclassifications from accumulated OCI to recognize gains in net income related to settlements of the five-year
financial swap contract with ComEd for the year ended December 31, 2013.
(d) For ComEd, the changes in fair value are recorded as a change in regulatory assets or liabilities. As of December 31, 2014 and 2013, ComEd recorded a regulatory
liability of $207 million and $193 million, respectively, related to its mark-to-market derivative liabilities with Generation and unaffiliated suppliers. As of December 31,
2013, this includes $11 million of decreases in fair value and $215 million for reclassifications from regulatory assets to recognize cost in purchase power expense
due to settlements of ComEd’s five-year financial swap with Generation. As of December 31, 2014 and 2013 ComEd also recorded $13 million and $133 million,
respectively, of increases in fair value, and $1 million and $7 million, respectively, of realized losses due to settlements associated with floating-to-fixed energy swap
contracts with unaffiliated suppliers.
(e) Includes $81 million of fair value from contracts acquired and $47 million of cash collateral as a result of the Integrys acquisition.
113